Regulation of portfolio investment: risks for investors and opportunities to minimize them

Resumo

Objective: The article discusses the risks of portfolio investment that arise during securities trading in Russia, and the possibilities for minimizing such risks for investors. The Russian securities market still experiences some risks that are not associated with average movements of prices. Method: The study aims at determining new organizational and legal mechanisms for protecting the interests of private portfolio investors and attracting new investments. Results: The authors of the article classify the risks for portfolio investments in Russia emerging in the process of securities trading with due regard to their changing values. They define mechanisms protecting stock market participants against risks (including compensatory). The authors also make assumptions about insurance services that might be in demand in the securities market. In addition, they consider the possibilities of using the world experience in insuring these risks in Russia considering national specifics. Conclusions: Authors highlighted the role of financial regulators and professional investors in improving the Russian investment climate.