19.01.2023
The LHV Growth Account is one of the most popular choices among Estonians when starting to invest. This week, the number of Growth Account holders already exceeded 50,000; 40,000 of them have joined in the last three years.
Investing with the Growth Account is affordable for everyone, and this is what makes the product so popular, says Annika Goroško, Head of Retail Banking at LHV. ‘Knowledge has begun to spread among people that if they do not know much about investing yet, but would like to start with small amounts, they should look towards the LHV Growth Account. We are very pleased about this, because the Growth Account is perfect for starting with investing and for long-term investing. In addition, the Growth Account refutes the myth that investing requires a lot of money, time, and knowledge,’ says Goroško.
You do not have to have a lot of money or knowledge to invest with the Growth Account, as you can invest with as little as one euro at a time, and you do not have to worry about making transactions yourself, because everything works automatically. There are more than 40 different equity funds to choose from, and shares of the most popular individual companies were also added at the end of last year. Today, when compiling a portfolio, you can choose from the shares of almost 30 individual companies, including Tesla, Apple, Microsoft, and other successful companies, a piece of which the holder of a Growth Account can buy for as little as one euro.
The Growth Account has become especially popular among children and young people, and this is also reflected in the average age of the Growth Account holder, which has dropped from 37 to 28 years in five years.
Goroško points out that parents increasingly prefer to invest instead of saving money for the future of their child. ‘This is a prime example of long-term investing, as our statistics show that nearly 88% of the children for whom their parents opened an investment account continue to invest even when they reach adulthood.’
‘In this case, time – which is one of the most important factors when it comes to investing – comes into play. For example, 90% of those who have invested with the Growth Account for five or more years are currently in profit,’ says Goroško. ‘While the last few years have been more difficult in the markets and the economy, and only a tenth of those who started with the Growth Account during this period are in profit today, then the majority of those who have invested for at least two years are already in the black. This proves that investing is a marathon, and when you see numbers in the red, you should not immediately panic and step off the track,’ she adds.
When, what and for which amount to buy securities can be determined by each account holder themselves. You can choose both regular and individual contributions, as well as the possibility of microinvesting, which means that money will automatically be transferred to your Growth Account in small amounts every time you pay somewhere with a bank card. Every third Growth Account holder uses this option.
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, and LHV Kindlustus. The Group employs more than 880 people. As at the end of November, LHV’s banking services are being used by 374,000 clients, the pension funds managed by LHV have 131,000 active clients, and LHV Kindlustus protects a total of 150,000 clients. LHV’s UK branch offers banking infrastructure to 200 international financial services companies, via which LHV’s payment services reach clients around the world.
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