Stock surge: how the authorities are trying to boost interest in the stock market

The development of collective and family investments, the inclusion of CFAs in mutual funds, and the legalization of investments in cryptocurrency for the "highly qualified" are tools that the Central Bank considers promising and expects to develop in the near future. This was stated by the head of the Bank of Russia, Elvira Nabiullina, at the Russian Stock Market 2025 conference. The discussion is relevant right now: when the key interest rate starts to decrease and deposits become less profitable, it is important to attract investors' money into investments so that they do not flood into the consumer sector and accelerate inflation again, experts say.

Where to invest money other than deposits

The Russian economy needs a "decisive turn" towards the development of the capital market, Central Bank Governor Elvira Nabiullina said on May 16 at the Russian Stock Market 2025 conference of the National Association of Stock Market Participants (NAUFOR). In particular, it is necessary to promote collective investment instruments for citizens, for example, through mutual funds. According to her, if "independent trading" through brokers prevails on the stock exchange, market volatility increases significantly.

The Central Bank plans to hold public consultations and decide how to make collective investments more attractive to customers, Elvira Nabiullina said. In particular, the regulator intends to discuss with NAUFOR the idea of allowing management companies to include digital assets and non-tradable securities in mutual fund portfolios. It is also important to solve problems on the market side, the head of the regulator noted.

— There are issues on the side of the industry here — for example, asset management fees, they are quite high, — Elvira Nabiullina emphasized.

In addition, the Central Bank sees prospects in expanding the range of family investments, said Elvira Nabiullina. They will allow combining the tools of individual investment accounts (AIS-3), shared life insurance and long-term savings programs (CDS). It is planned to refine and develop the mechanisms in the future.

Is it profitable to buy mutual funds

Mutual funds are generally much safer for investments in the stock market than independent investments by citizens, since they are managed by professional investors, said Andrey Smirnov, an expert on the stock market at BCS World of Investments. This means that the risks of investments will be carefully and expertly assessed, and the investment portfolio itself will become more balanced and diverse, which means it will be more protected from asset value fluctuations.

To stimulate interest in mutual funds, first of all, it is necessary to simplify access to them for ordinary investors, for example through digital platforms, mobile applications and intuitive interfaces, says Vladimir Chernov, analyst at Freedom Finance Global. Secondly, it is necessary to increase transparency, as investors should see the composition of assets, risks, commissions and the results of the managers' work.

Tax incentives will help support Russians' interest in investing through mutual funds, added Hovhannes Ohanisyan, director of the analytical department at Digital Broker.

— In addition, it is important to improve tax incentives. For example, to expand the benefits of the AIS-3. And also to lower the entry threshold in order to make investments accessible even to low—budget investors. Special attention should be paid to the promotion of index and low—cost funds, which have already become a massive tool in developed economies," added Vladimir Chernov.

In addition, it makes sense to simplify the requirements for the asset structure of mutual funds in order to allow them to provide higher income, BCS World of Investments clarified. In addition, security guarantees will help attract investors, for example, when insuring investments.

According to Vladimir Chernov, mutual funds with digital financial assets will be in demand primarily among more advanced or qualified investors.

— CFAs provide access to new asset classes, such as tokenized debt instruments, infrastructure projects, or digital currencies. At the same time, it is important that the valuation of these assets, their accounting rules and liquidity are comparable with traditional instruments," the expert said.

Family investments may well attract new retail customers to the market, BCS World of Investments is confident. An influx of 2-3 trillion rubles over the coming years is quite likely.

Is it legal to invest in cryptocurrency in the Russian Federation

Another tool that may be of interest to investors is cryptocurrency. However, investing in it will require regulatory changes and a separate infrastructure, the head of the Central Bank emphasized. The introduction of such products should take place within the framework of an experimental legal regime and be available only to "highly qualified investors."

The Central Bank is still clarifying the criteria by which Russians will be allowed to operate with cryptocurrency, Elvira Nabiullina added. It is expected that the regulator will be able to coordinate the initiative with the government in the near future.

At the same time, experts are more skeptical about the cryptocurrency market than about the development of the mutual fund market. This instrument poses a great danger to poorly developed or relatively closed financial markets, explained independent expert Andrey Barkhota. So it is necessary to provide access to them only to those categories of investors who will use them in their financial and economic cycle, for example, to pay with their help abroad.

Will deposits be frozen

The discussion on the development of investment instruments intensified when the Central Bank began to prepare to lower the key rate. As experts interviewed by Izvestia expect, the first steps can be expected in the summer of 2025. At the same time, deposit rates have already started to fall in the spring.

Against this background, the authorities are trying to channel citizens' savings into long-term instruments, rather than into consumption. This is necessary to avoid a new overheating of the economy and a surge in inflation, explained Vladimir Chernov from Freedom Finance Global. Before that, some experts even said that in order to save money on savings instruments, deposits would have to be frozen — however, this option is extremely unlikely.

"When the interest rate starts to be lowered, investment instruments will become more attractive than savings products," predicts Hovhannes Ohanisyan, director of the analytical department at Cifra Broker.

If the key markets decline, they will receive a powerful driver for growth, said Andrey Smirnov, an expert on the stock market at BCS World of Investments. The flow of funds into riskier assets will be inevitable, therefore, according to experts, another urgent issue is state support for the financial market.