Published: December 08 2023
Hungarians are increasing their investments in securities accounts, with nearly 4 trillion forints pouring into domestic securities this year. State bonds and investment funds are popular choices, with the OTP bank being the favorite among retail investors. This article provides an overview of the surge in investments and the various options available for investors in Hungary.
Increase in Investments in Securities
Hungarian households have been actively investing in securities, with an additional 304 billion forints saved by retail investors in October alone. From January to October, a total of nearly 4 trillion forints has been invested in domestic securities. This has resulted in households having a total of 22.2 trillion forints invested in securities, with the majority being in domestic government bonds.
Popularity of Investment Funds
Despite the imposition of a 15% tax and an additional 13% social contribution tax on bank bonds, investment funds have attracted a significant amount of fresh savings. In October, over 141 billion forints were invested in investment funds, bringing the total for the first ten months of the year to nearly 1.7 trillion forints. The total amount invested in investment funds by households has now exceeded 8 trillion forints.
Focus on OTP Bank
Retail investors still show a preference for trading on the domestic market, with a historical high of 1.4 trillion forints in domestic shares held by households at the end of October. The majority of these shares are issued by "other monetary institutions," practically referring to the OTP bank. While some investors sold shares in October to realize profits, those who held onto their shares benefited from an approximately 8% increase in OTP's share price since then.
Conclusion
Hungarians are increasingly investing in securities accounts, with a significant amount of funds flowing into domestic securities. State bonds and investment funds are particularly popular choices among retail investors, with the OTP bank being their favorite. Despite potential risks, the attractive returns on investment funds and the potential for future market growth are driving investors' decision-making.
Questions & Answers
=== How much money flowed into Hungarian securities accounts in 2022? Nearly 4 trillion Hungarian forints flowed into domestic securities accounts in 2022.
Which type of security is the favorite among Hungarian investors? Government bonds, particularly the Premium Hungarian Government Bond (PMÁP), are the favorite among Hungarian investors.
What is the total amount of household investments in Hungarian securities? Households in Hungary have a total of 22,246 billion forints invested in securities.
What is the largest portion of investments in Hungarian securities? The largest portion of investments, amounting to 12,285 billion forints, is in domestic government bonds.
How much fresh savings were invested in government bonds in October 2022? 134 billion forints of fresh savings were invested in government bonds in October 2022.
What is the condition of the new series of the Premium Hungarian Government Bond (PMÁP) announced in November 2022? The new series of the PMÁP offers a lower interest rate of 9.9% in 2024, resulting in a decrease in popularity.
What are the other types of securities that attract fresh savings in Hungary? Bank bonds and investment funds also attract fresh savings in Hungary, despite the imposition of a 15% tax and a 13% social contribution tax on the interest earned.
What is the total amount of savings in investment funds in October 2022? There were 573.5 billion forints of savings in investment funds in October 2022.
What is the favorite bank stock among Hungarian investors? OTP Bank is the favorite bank stock among Hungarian investors.
Was there a record high in Hungarian household stock holdings in October 2022? Yes, there was a record high of 1394.8 billion forints in Hungarian household stock holdings in October 2022.
What is the significance of "egyéb monetáris intézmények" in the household stock holdings? "Egyéb monetáris intézmények" refers to stocks issued by banks, with OTP Bank being the primary example.
What was the performance of OTP Bank's stock in November 2022? Since November, OTP Bank's stock has increased by approximately 8%.
How did households benefit from holding bank stocks in October and November 2022? Households benefited from holding bank stocks as there was a slight increase in share prices, resulting in some capital gains. ===
