Investing in Securities, Accessible to Everyone: Advice from Fintech Expert Olena Sosedka

The full-scale war and the challenges it poses for the economy are increasingly prompting Ukrainians to seek sources of additional passive income, as well as opportunities to safely store their capital. One such option is investing in securities, which have been gaining popularity among Ukrainians in recent years. UNN asked fintech expert and co-founder of Concord Fintech Solutions, Olena Sosedka, about how to take the first steps, what instruments to choose, and what mistakes to avoid.

Previously, the most popular way to invest was to buy real estate, but due to frequent shelling of Ukrainian territory by the Russian army, the number of people willing to do so has significantly decreased – people are afraid to invest their earnings in an apartment that could be destroyed by another missile. Therefore, alternative investment methods are gaining popularity – some invest in precious stones, some in couture handbags, some buy real estate abroad, and some keep their money in cryptocurrency.

But what if your savings are not enough to buy an apartment, you are not a fan of gold or diamonds, and the high volatility of digital assets scares you? Securities can be a way out here.

How to start investing

As fintech expert Olena Sosedka said, novice investors should start with the most understandable and transparent instruments.

Government bonds (OVDP) are a basic instrument for Ukrainians. These securities are guaranteed by the state, have clear profitability and clear redemption terms. Such papers can be considered the least risky option for saving money.

OVDPs in Ukraine can be purchased through banks or licensed brokers. In addition, government securities can be bought through mobile applications, such as "Diia" or banking apps. The par value of one bond is 1000 hryvnias. But banks and brokers usually set their own "entry threshold" - from several tens of thousands of hryvnias. Through mobile applications, significantly smaller volumes can be purchased - from several thousand hryvnias.

The yield rate of OVDPs is approximately 15–20% per annum in hryvnia. Here it should be understood that the longer their term, the higher the income will be. In foreign currency, the profitability will be lower – about 3–5% per annum.

Another option could be investments in corporate bonds of Ukrainian companies. However, in this case, according to the fintech expert, it is necessary to carefully assess the financial condition of the issuer in order not to lose savings.

A more complex but promising instrument is the purchase of shares.

In Ukraine, this market is still underdeveloped, so a significant part of investors' attention is focused on foreign companies' securities.

Due to the underdeveloped Ukrainian stock market, the liquidity of such an investment remains low. Here, profitability depends on the growth of share value and dividends. In addition, one should not forget about the significant risks associated with doing business in wartime conditions.

Investments in global companies

Ukrainian legislation allows citizens to invest abroad, for example, by opening accounts with international brokers or through services that provide access to foreign exchanges. However, according to the fintech expert, there are currently currency regulation restrictions. If such an instrument is chosen, she says, special attention should be paid to a careful selection of intermediaries.

Yes, Ukrainians can invest in shares of global giants, for example, Apple, Tesla, Microsoft, Google, ETF funds. But it is important to use only licensed brokers who guarantee the safety of assets and transparent terms of cooperation.

The average annual return of the S&P 500, or the 500 largest American companies, is about 8–10% in dollars, provided long-term investments for more than 10 years. Shares of individual companies, such as Apple, Tesla, Nvidia, can show significantly higher growth, but also have greater risks. After all, such companies are more dependent not only on the demand for their products, but also on the perception or non-perception of new products they offer to the market.

ETFs, or exchange-traded funds, which reflect indices or sectors, allow for a more stable average return – 6-9% in dollars.

The fintech expert noted that investments in international instruments allow not only to diversify the portfolio, but also to feel part of the global economy. After all, by buying shares of well-known companies, an investor actually becomes their co-owner, which creates a sense of involvement in international markets and trends.

However, in this case, one should remember about tax obligations and currency risks. In the case of civil servants, the ownership of shares must be declared.

In addition, it should be remembered that the value of shares depends not only on their quotations, but also on the exchange rate. Even if a share grows in price, a significant depreciation of the hryvnia or currency fluctuations can affect the real profit or loss.

How to choose what to invest in

The most important advice is not to invest all your money in one asset. Different instruments reduce the risks of losing funds.

When forming a securities portfolio, I would advise combining several categories: low-risk government bonds, medium-risk corporate papers, and a share of more dynamic instruments – stocks or ETFs. Such diversification will allow balancing profitability and security.

In addition, it is worth determining your own goals, for example, whether the investment will be long-term. If money may be needed in a year or two, it is better to bet on more stable instruments; if in five or more years, then the share of stocks in the portfolio may be larger.

At the same time, according to Olena Sosedka, there are modern solutions for novice investors, as well as those who want to immediately diversify risks. Some exchanges and brokers offer to invest in ready-made stock portfolios, also called "thematic baskets," which can be purchased even for small amounts. Instead of investing all savings in one company, funds are distributed among dozens or hundreds of securities of different companies.

This is a fairly convenient way to "try the market" without having to spend a lot of time selecting each stock separately. In addition, if the shares of one company "fall" in price, this will be compensated by the growth in profitability of others.

Usually, the minimum purchase threshold starts from several tens of dollars, and in some services - from 10-20 dollars, which makes such investments accessible to almost everyone and is a good option to try investing.

The profitability of such an investment depends on the chosen sector in which the companies included in the "thematic basket" operate - technology, companies working in the field of renewable energy sources, pharmaceuticals, etc. They usually fluctuate within 5-15% per annum, sometimes lower.

What risks exist

Any investment is always associated with the risk of losing funds, and securities are no exception. This can be a fall in the value of shares, company default, or currency fluctuations.

No investment instrument provides absolute guarantees. Therefore, the main safeguard is diversification and understanding what exactly you are investing in. You should not buy shares of a company just because it is well-known. First, you need to understand its business model and market prospects. In addition, it is important to monitor news about the company you have chosen to react in time to a potential crisis and not lose your savings.

According to her, it is best to follow the principle during any investment: invest only the money you are willing to lose without critical consequences for you.

How to choose an exchange and a broker

If everything is clear with OVDPs, then a reliable broker is needed to access shares of foreign companies. When choosing one, you should pay attention to the presence of a license in the country of registration, the transparency of its tariff policy, a convenient and understandable interface, and the availability of customer support. Large international exchanges, such as NYSE, NASDAQ, LSE, provide the greatest liquidity and protection for investors, as they have a reputation proven over the years.

It is important to check whether the broker is part of international investor insurance systems. After all, this guarantees that in the future, in case of problems with the company, your assets will not disappear.

So, investing in securities is not only an opportunity to save money, but also a chance to create a financial cushion and secure the future. But this investment process requires a balanced approach.

The first step for an investor is not buying shares, but forming their own strategy. You must have a clear understanding of your goals, deadlines, and the level of risk you are willing to take. Then investments will cease to be a gamble and turn into a real instrument of financial freedom. Investing is not just about money, it's about responsibility for your own future.