The Central Bank called the buy and hold strategy the main one for Russian private investors 
sells shares. The Central Bank named the buy and hold strategy as the main strategy for private investors in its November Financial Market Risk Review.
Private investors became the largest buyer on the Russian stock market – from April to September, the population's share in total net purchases (purchases minus sales) exceeded 85 percent. This dynamics shows that the demand for Russian shares from retail investors is growing. The regulator notes that Russian citizens have become the dominant force in the market and can have a significant impact on its dynamics.
Approximately 18 percent of investors who buy shares have not sold the acquired securities over the past year and a half. 60 percent of traders on the exchange have sold less than 35 percent of the portfolio. The average retention period for securities sold by such investors is about 220 trading days.
In October, the purchase of shares by citizens reached a record since the beginning of 2021, exceeding the April figure of 80 billion rubles. At the same time, the share of shares in the structure of Russians' savings is only 12 percent, which is below the level of most countries in the world. In Mexico, the share of stocks in private savings is over 40 percent, while in the United States and Sweden it is over 35 percent. The regulator believes that the population can continue to build up a portfolio of shares and increase its share in their savings. Among other things, Russians can buy out securities that are now owned by foreign investors, which form the bulk of sales of Russian shares. At the same time, non-residents still own almost a third of the capitalization of the Russian stock market.
The Central Bank attributed a high share of unqualified investors to the risks of financial stability of stock markets. Their behavior during the formation of a downward trend in stock prices may be more volatile and difficult to predict, the regulator believes. The Central Bank seeks to reduce risks by limiting access to complex products for unqualified investors and raising their awareness.
In early November, Russian brokers said that according to the results of the Central Bank's test, investors' knowledge of some exchange issues was at a low level. The most difficult for investors were the tests for admission to foreign shares and shares outside the quotation lists – the most popular investment instruments. Investors performed best on the tests of knowledge of the most complex and unpopular instruments. This result is due to the fact that experienced customers are interested in more complex products.