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Record Numbers as Private Investors Flock to the Moscow Exchange

Since the beginning of 2020, Russian citizens have opened 1.35 million individual investment accounts (IIA), raising the number to 3 million accounts since IIAs were established in 2015. This is an 82% increase this year alone.

IIA assets also increased by 25% from the start of the year, reaching 246 billion rubles.

Trading volume from IIS accounts over the past nine months exceeded 1 trillion rubles (87% stocks, 10% bonds, 4% exchange-traded funds).

Sberbank is the largest holder, managing 1.5 million accounts, followed by Tinkoff Bank (468.6 thousand accounts) and VTB Bank (452.8 thousand accounts).

Brokerage companies, clients of BCS hold 142.1 thousand accounts, while Opening Broker (more than 98 thousand accounts), and Finam (69.8 thousand accounts). Management companies include Sberbank Asset Management (204.4 thousand accounts), AM Alfa-Capital (33.8 thousand accounts), and the group of MC Region (31.6 thousand accounts).

Regional Distribution

Moscow led the way with 325 thousand new accounts, followed by the Moscow region (178 thousand) and St. Petersburg (133 thousand).

How IIAs Work

Funds held in an IIA can be used to invest in stock market instruments, including stocks, government and corporate bonds, including Eurobonds, as well as exchange-traded funds (ETFs), mutual funds, etc. 

In addition to income from investments, the investor is entitled to one of two types of investment deductions for personal income tax: a deduction of 13% on the amount of an annual contribution of up to 400 thousand rubles (refund up to 52 thousand rubles per year) or exemption from taxation of the entire the amount of income received on the IIS (when closing the account).

Fomag

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