According to the latest statistics, Hungarian households’ appetite has increased greatly for investment funds and quoted shares, but transactions with these were still unable to beat the HUF 83 billion net transaction with government securities in November 2016. Demand for bank deposits has declined moderately, but the combined monthly demand for bank deposits and securities still reached HUF 150 bn, the highest figure on record last year.
According to the latest statistical release by the National Bank of Hungary (MNB) for November 2016, there was positive demand for bank deposits and securities, as well, although demand for the latter exceeded demand for the former by nearly HUF 20 bn. Transactions with securities amounted to almost HUF 93 bn in November and transactions with bank deposits reached HUF 72 bn, which resulted in a combined transaction figure of HUF 150 bn, the highest monthly print last year.
Government securities were the key driver of transactions with securities also in November, with more than HUF 83 bn placed in these instruments by local households. Demand for investment funds and quoted shares has also jumped. The former closed the month with HUF 19 bn worth of transactions and the latter with HUF 9 bn.
Household assets placed in savings instruments exceeded HUF 15.5 bn in November, which corresponds to a 6.7% year-on-year growth. Within savings, government securities shone. The stock of these grew by HUF 983 bn compared to the base period. Bank deposits showed the second-greatest increase at over HUF 290 bn. The biggest contraction was observed at bonds issued by banks (HUF -190 bn), but investment notes also showed a HUF 82 bn shrinkage.
Hungarian households held HUF 3,790 bn worth of funds in investment funds at the end of November, most of which were held in bond funds. Derivative funds, funds of funds and real estate funds were also popular. The latter already boast a nearly 14% share within investment fund portfolios.
