Ten-month investments in 2009 generated returns ranging from 11-88%, depending on risk taken

This is the maximum gross yield of a portfolio comprised of six-month, three-month, and one-month deposits, using various promotions developed by banks this year, said investment managers interviewed by Business Standard.

Furthermore, bank rates declined over the past few months, with BNR’s average dropping to 10.28 percent in September. “The main criterion suitable for this year was maintaining a high degree of investment liquidity, namely the possibility of rapid and loss-free access to cash. But, even with promotional deposits, nobody could have gained higher returns from deposits than monetary investment funds,” said Leonard Visan, General Manager of the Investica investment management company.

One option, that of bonds, must take into account their high cost. One state bond or one EBRD bond (listed on the Bucharest Stock Exchange) costs RON 10,000 (some €2,365). Bonds issued by the European Investment Bank (EIB) or by Banca Comerciala Romana (BCR) have a nominal value of RON 100 (€23.6). These titles are not very liquid. However, “RON 5,000 [€1,182.6] invested in bonds issued by international financial entities [Ed. n. – EIB or the World Bank, by September] could result in a gain of RON 1,000, or 20 percent,” said Nicolae Albu, Investment Manager of Erste Asset Management Romania.

Albu would have recommended that an investor with an average appetite for risk invest in a diversified portfolio, with 50 percent investments in shares (financial titles) listed on the Bucharest Stock Exchange (BVB), and the other half in the above-mentioned bonds. The “financial shares” would belong to the five financial investment companies (SIF), BRD – Groupe Société Générale and Banca Transilvania. The index of SIFs (BET-FI) surged 69.45 percent this year. If the investor had allocated for the five SIFs amounts in direct proportion with their shares in the index’s basket, he or she would have gained over RON 6,500 (€1,537.5). With lower risks, one could have obtained similar earnings through mutual funds investing in BVB shares. Gains range from RON 2,000-6,200 (€473-1,466.5) and, in an exceptional case, could amount to as much as RON 8,800 (€2,081.5).