There are quite a lot of securities traded on the Russian stock exchanges. They represent companies engaged in various areas of business (industry, power generation, agroindustry etc.). Demand for this type of securities may vary from time to time depending on investor preferences. The most liquid securities are called «blue chips», less liquid ones are known as «second-tier» securities.
«Second-tier’ securities can be used to diversify an investment portfolio made up of «blue chips». The correlation between these two instruments is quite weak, and this can help improve the overall investment portfolio efficiency in terms of potential profitability-to-risk ratio.
Features
investing in «second-tier» securities is normally more risky compared to «blue chips» but this is offset by the higher growth potential.
investors are recommended to focus on quite a long investment horizon;
it is highly recommended to make an assessment of companies whose securities are part of your portfolio;
technical and fundamental analysis techniques as well as mass media-based market monitoring are normally insufficient for effective «second-tier» securities trading. Their pricing depends on a lot more factors than that of «blue chips», and this requires more time, expertise and experience.
Being one of the leaders on the «second-tier» securities market, OLMA offers a wide range of services making this type of securities available to all types of investors as a very efficient hedging and investment tool.
We monitor issuing companies, undertake a thorough study of «second-tier» shares and prepare regular market research covering, inter alia, mid- and small-cap companies.
