DOI: https://doi.org/10.18371/fcaptp.v1i24.128362

THE FEASIBILITY AND RISKS OF INVESTING IN MODERN FINANCIAL INSTRUMENTS

A. M. Shevchenko

Abstract


Relevance of the article is that the post–crisis economic recovery and the rapid development of European integration are both – a cause and a consequence of higher investment activity, which causes the expansion of the frontiers of the use of financial instruments while increasing the their riskiness in the current economic conditions. The dynamics of sales of financial instruments used in the investment process in the financial market of Ukraine, such as stocks, corporate bonds, government bonds of Ukraine, local bonds, savings certificates, certificates of deposit of the National Bank of Ukraine, investment certificates, mortgage bonds, option certificates, derivatives. The types of risks inherent to all modern financial instruments and specifies types of risks that are specific to certain types of financial instruments are shown.

The advantage of investing in certain types of financial instruments is grounded. The directions of risk reduce in exposure of investment in modern financial instruments, such as diversification (by type of instrument, the currency of a financial instrument, the countries issue a financial instrument, capitalization and sector of the issuer of financial instruments) and investment taking into account the time interval investment are offered. The main idea of the article was to prove the rationale for investing assets in financial instruments with simultaneous identification of risks that accompany this process, for finding out the ways to minimize them in the future.


Keywords


risk; investments; financial instruments; income; investment instruments; financial market.

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ISSN (print) 2306-4994, ISSN (on-line) 2310-8770