How to choose the right investment strategy in Serbia?

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In addition to the usual way of investing in real estate and savings, Serbian citizens were able to direct most of their money to open-end investment funds with a public offering (UCITS), which are known to invest the fund’s assets mostly in equity securities, says financial advisor, Miloš Piščević.
According to him, this type of investment has not yet reached sufficient popularity, so it has not been promoted through the media and social networks.
“Our people are not unfamiliar with investing in the shares of the world’s largest companies, which is evidenced by the fact that the number of investors in investment funds has increased by 38 percent compared to 2020,” Piščević specified.
He states that the right moment to invest depends on many factors.
“Depending on the motive, the ages when future investors decide to start investing are also different. One group wants to provide quality education for their children through investment, while the other group is thinking of providing themselves with a decent income in old age through such an investment,” explains our interlocutor.
According to his assessment, the right moment to allocate funds for children’s education is when he becomes a parent, because from then until the child chooses his sphere of interest, parents have the longest period during which they can gradually allocate money for quality education.
Miloš Piščević’s recommendation is that you should think about investments that will provide you with a calmer third age right at the beginning of your working life.
“The sooner potential investors create their personal pension financial plan and implement it in writing, the more money invested will have time to grow. In fact, it is never too late to start investing for the third age. Even if one does not think about retirement, every dinar invested today will be worth much more at a later time,” said the financial advisor.
He advises that before deciding on an investment, one should consider the individual financial situation and choose the right strategy for achieving long-term financial goals, because there is no universal rule and a clearly defined amount of money.
“If potential investors are considering becoming owners of shares in the shares of large global companies, without having experience in stock exchange business and not having large financial resources, they can do so through investment funds. Namely, a ten-year investment plan can be created with 20 euros a month,” explains Piščević.
The financial advisor adds that investment funds are an ideal solution for everyone who wants security, higher earnings, professional management, investing in a set of the highest quality financial instruments, diversification of portfolios by countries, currencies and sectors.
“Investment funds are the best alternative to savings. A great advantage of investing through mutual funds is investment security. The fund’s assets are in the fund’s account with the custody bank. The custody system of the bank is a special security system that completely protects the investor. The custodian bank can perform the transaction of the investment fund’s portfolio manager only if it is in accordance with the Law on Open-End Investment Funds with a public offering, bylaws and the Fund’s Prospectus,” explains Piščević.
He emphasizes the advantage of investing in stocks through investment funds in relation to independent investing on the stock exchange.
“When investing in stocks independently, a larger initial capital is necessary in order for the portfolio to be at least minimally diversified, and that entails additional costs for each individual purchase,” concludes Piščević, Biznis reports.