+7 495 989 9610, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
Finance and Credit
 

The impact of international diversification on the efficiency of investment portfolio within the Russian financial market

Vol. 27, Iss. 5, MAY 2021

Received: 15 March 2021

Received in revised form: 29 March 2021

Accepted: 12 April 2021

Available online: 28 May 2021

Subject Heading: INVESTING

JEL Classification: G01, G11, G17

Pages: 1178–1200

https://doi.org/10.24891/fc.27.5.1178

Sergei A. TIMOFEEV University of Tyumen (UTMN), Tyumen, Russian Federation
timofeev_sa96@mail.ru

ORCID id: not available

Yana N. NAKHIMOVA University of Tyumen (UTMN), Tyumen, Russian Federation
y.n.nakhimova@utmn.ru

ORCID id: not available

Subject. We address the diversified index investing strategy.
Objectives. The focus is on the development of an attractive investment strategy within the risk/return coordinate system, to improve the return of a retail investor in the Russian financial market.
Methods. We apply methods of analysis, synthesis, logical research based on the systems approach, statistical methods of data analysis (analysis of time series, correlation analysis), methods of optimal solutions, and the graphical analysis.
Results. The paper shows the need to use a diversified strategy in the financial market. We developed an investment strategy providing better investment results at a lesser risk. The offered strategy may be integrated into financial instruments of various financial participants of the Russian financial market. The results of our investment strategy are compared with the results of brokers' strategies and the best assets for investment, i.e. gold, currency, real estate, bank deposits, and inflation. The study analyzes the basic principles of the formation of a diversification index-based strategy, formulates the main requirements for the best diversification within the Russian securities market, and presents a diversified index strategy, which is suitable for all classes of investors.
Conclusions. In conditions of the modern Russian financial market formation, the results of investment strategies that market participants can offer to retail investors become a crucial factor, since they determine further directions of investment inflow, expand credit opportunities for companies, and contribute to the formation of an effective, progressive and deep financial market in the country.

Keywords: investor, return on investment, risk/return profile, strategy, diversified portfolio

References:

  1. Kanuri S., Malhotra D., Malm J. Evaluating the Performance and Diversification Benefits of Emerging-Market Exchange-Traded Funds. Journal of Wealth Management, 2018, vol. 20, no. 4, pp. 85–90. URL: Link
  2. Molyboga M., L’Ahelec C. Portfolio Management with Drawdown-Based Measures. Journal of Alternative Investments, 2017, vol. 19, no. 3, pp. 75–89. URL: Link
  3. Godunova L.A., Nagach T.A., Korepova V.V. [The investment behavior of people in Russia: Myths and realities]. Klastery. Issledovaniya i razrabotki = Clusters. Research and Development, 2017, no. 1, pp. 20–25. URL: Link (In Russ.)
  4. Bikalova N.A., Godunova L.A. [Transformation of the financial system of the Russian Federation]. Novaya nauka: Sovremennoe sostoyanie i puti razvitiya, 2016, no. 5-1, pp. 49–52. (In Russ.)
  5. Kolyasnikova E.R. [Building a portfolio based on different risk measures and investor's risk perception]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2017, vol. 16, no. 8, pp. 1583–1596. (In Russ.) URL: Link
  6. Kolyasnikova E.R. [Establishing investor preferences for risk and return]. Ekonomika i upravlenie: nauchno-prakticheskii zhurnal = Economics and Management, 2019, no. 1, pp. 80–84. (In Russ.) URL: Link
  7. Kolyasnikova E.R. [Stock portfolio selection by performance indicators]. Ekonomika i upravlenie: nauchno-prakticheskii zhurnal = Economics and Management, 2018, no. 2, pp. 76-79. URL: Link (In Russ.)
  8. Abzalilova L.R., Kolyasnikova E.R. [Construction of the Performance Indicator of the Financial Instruments Portfolio]. Ekonomika i upravlenie: nauchno-prakticheskii zhurnal = Economics and Management, 2018, no. 5, pp. 69–72. (In Russ.) URL: Link
  9. Markowitz H.M., Blay K. Risk-Return Analysis: The Theory and Practice of Rational Investing. McGraw-Hill Education, 2013, 272 p.
  10. Campbell S.J., Chong J., Jennings W.P., Phillips G.M. Portfolio Optimization Strategy for Concentrated Portfolios: Models and Time Horizons. The Journal of Wealth Management, 2018, vol. 21, no. 2, pp. 23–54.

View all articles of issue

 

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 27, Iss. 5
May 2021

Archive