YEREVAN, March 26. /ARKA/. Armenia’s investment market is experiencing a period of active development: the number of issues is growing, digital technologies simplify access to financial instruments. However, barriers remain. ARKA news agency talked to Ararat Mkrtchyan, Executive Director and Managing Member of Sirius Capital Investment Company, about how to properly form an investment portfolio, the current investment climate in Armenia and the main myths of investing.
“ARKA” – What are Sirius Capital’s main activities, goals and prospects?
A. Mkrtchyan – Sirius Capital is a fully digitalized investment company in Armenia, which creates digital products in the investment sphere. In other words, we provide easy access to currency exchange transactions, buy/sell securities – both Armenian and international.
We cover all exchanges from America to China, including the Middle East, Europe, we even have access to Russian exchanges. And since we have become a kind of hub within ourselves, it is possible to make almost all transactions through us in one click, without visiting the office and signing papers – everything is in digital format only.
“ARKA” – In your opinion, what are the main steps to form a successful investment portfolio?
A. Mkrtchyan – First of all, it is necessary to open a brokerage account, and secondly, it is necessary to set the right goal and understand what you want. It is very important to understand what expectations a person has from investments. According to these expectations, it will be very easy to choose an investment portfolio. For example, if you are young and plan to live a long life, of course, it is better to buy stocks. And if you are old and have a large accumulated capital, but you are afraid of losing it, it is better to keep a substantial part of your funds in assets that generate coupon income. In Armenia, there is a very good choice of bonds, where coupons are not taxed. Therefore, I think it is a good choice.
“ARKA” – In general, how do you assess the current investment climate in Armenia?
A. Mkrtchyan – Surprisingly enough, there is a boom of financial market development in Armenia. The number of issues is growing annually, especially corporate issues, and we see that many companies are entering the financial market for the first time with bond issues.
“ARKA” – What do you consider to be the key barriers for the growth of Armenia’s investment market and how can they be overcome?
A. Mkrtchyan – The main barrier is the technological underdevelopment of the exchange itself, which prevents more seamless integration. Besides, the lack of open banking – this is such a technology of financial management, within the framework of which banks open their technological systems for other financial institutions. This provides a huge leap forward for financial market development.
All over the world this is being done with the help of the central bank’s “baton”: in Britain, for example, banks have been forced into open banking mode – when you bypass the bank’s mobile application and directly connect to its backend (server). That is, you can check your balance and make transactions without “logging in” to the bank’s application. Such ABI-integration (Application Binary Interface – ed.) is very important for the market and especially for investment companies.
“ARKA” – Name the main myths of investing.
A. Mkrtchyan – The main myth is that there is more risk in investing than in anything else. For example, there is a feeling that buying or renting an apartment you bear less risk than buying a security. Another myth is that you have to be a big professional to understand all this. You don’t need to be a big professional, you just need to be interested. And in general, you don’t need to be overconfident, but you shouldn’t be afraid of new things either. -0-
