Let’s not pretend that the situation on the Ukrainian market is cloudless – yes, it is not in the best shape, and the investor should act carefully. However, any risks can be predicted with a high degree of probability, if not calculated with accuracy.
Today we are figuring out where to invest in Ukraine, what rules an investor should adopt in the modern Ukrainian market and how to diversify risks. Why invest in the Ukrainian market? Then, why and in any other markets: to save and increase funds.
When and how to start investing in Ukraine?
Not earlier than you will provide yourself with a financial cushion for at least three months, and better – for six months. And for investment, it is desirable to have completely free funds. There are several reasons for this.
In any field there are processes that cannot be predicted, and even the most reliable global companies sometimes fail and let investors down. The situation on the Ukrainian markets is unstable, and if a period of recession suddenly begins or events develop according to the worst scenario, the investor should have a livelihood. In other words, the financial cushion is the first rule of risk diversification.
Secondly, life is just as unpredictable, situations may arise that require unplanned spending: a natural disaster, an illness that has affected the life of an investor or his loved ones, are forced to pull up assets to solve problems. And if it turns out that assets are invested in projects from which they cannot be quickly withdrawn, a dual and unpleasant situation will arise.
Therefore, first – a financial cushion and free funds, then – investment.
Where to invest in Ukraine?
An option for those who want to acquire a real asset for their own money. Depending on the wishes of the investor, real estate in the future can be resold or leased, or you cannot buy ready-made, but build your own, if the investor has sufficient funds for this.
In this direction, an investment in an unfinished object may become profitable, although risky. In this case, you need to analyze very well the object itself, and the history of the developer, involve lawyers in studying the contract. And in some cases, such objects can be resold even before commissioning.
This type of investment requires amounts from $ 10,000 for residential properties, from 35 thousand for commercial ones, which, as an investment object, are more profitable than residential ones, their profitability can reach 8-12% per year.
Considering the situation on the Ukrainian market, investors willingly choose the conservative path: to invest in an already operating small or medium business with clear prospects.
If you choose the right direction and a specific project, you can get up to 35% profitability, and the initial investment level – from several thousand hryvnia.
Highly profitable areas in Ukraine: retail, IT, distance learning, services and delivery.
However, there are specific risks in this area, and these are not only obvious things like non-fulfillment of obligations by counterparties – these are also seasonal, economic, political, and other risks. When making a choice to invest in a business, an investor should choose areas in which he understands and will be able to calculate what is not visible on any documents.
A rather shaky investment instrument in today’s realities of the domestic market, but it makes sense if there is a project in an area that you are well versed in. If you read the business plan and make sure: the idea is promising, the team is motivated, the plans and goals of the startup are ambitious and achievable – why not? There are examples of startups, including domestic ones, that “took off” and became market leaders, simultaneously making their investors rich.
Still, it’s worth remembering that for every startup that has taken off, there are hundreds of failed startups that no one knows about. Therefore, this tool is suitable for investors who are willing to take risks and are looking for promising areas for investment. You also need a willingness to dive deeply into the topic: many worthy undertakings fail not because they are bad in themselves, but because the team does not have enough experience to “pull out” them.
Of course, this is not an exhaustive list, there are other areas for investment: for example, websites, works of art. We examined the classic set, in one way or another, available to a novice investor.