Money is constantly being channeled into the International Institute of Sciences (IIS)
In the second quarter of 2025, the world of Individual Investment Accounts (IIAs) in Russia witnessed a significant surge. The total number of IIAs reached an impressive 6.2 million, marking a growth of nearly 94,000 in just three months[1].
This growth is accompanied by a notable shift in investment preferences. Debt securities, such as bonds, now make up approximately 39% of IIA portfolios, while the share of Russian stocks has dropped to 33%, the lowest level since mid-2023[1]. This trend suggests a clear move away from equities towards bonds within IIAs.
The total assets held in IIAs stood at ₽680 billion, boosted by inflows of ₽39 billion and the positive revaluation of Russian bonds[1].
Although the bullet points do not explicitly mention recent changes, the growing number of accounts and active fund deposits indicate that IIAs continue to benefit from Russia's tax incentives related to these accounts.
The shift from stocks to bonds aligns with broader economic conditions, including high inflation and high nominal interest rates on loans. In this environment, investors may prefer the relatively safer and potentially more stable returns of bonds rather than the more volatile stock market[1][3].
Artem Kirakosyan, director of IIS development at "BCS World of Investments", highlighted that many clients are still unclear about the advantages of IIAs compared to a regular brokerage account[2]. However, he emphasised that the key advantage of IIAs for clients is the tax deduction on contributions[2]. Oleg Abelev, head of the analytical department of investment company "Ricom-Trust", concurred, stating that IIAs are opened for tax deductions in 9 out of 10 cases[2].
Dmitry Lesnov, deputy general director for brokerage business at FG "Finam", recommended investors to top up their IIAs after opening them and make transactions to ensure the deduction[4]. He also noted that most investors who pre-fund their IIAs prefer real returns and consider IIAs as offering additional bonuses in the form of deductions on income or contributions[4].
The government and Central Bank's goal of attracting long-term funds into the economy is being addressed by the increasing number of investors committing to long-term investments in IIAs. This cautious, bond-focused investor behavior in the current Russian investment environment[1][3] is a positive sign for the economy's future.
References:
[1] Kommersant. (2025, July 1). IIAs: Growing Trend and Shift Towards Bonds. Retrieved from https://www.kommersant.ru/doc/4563858
[2] RBC. (2025, June 22). IIA Development: Clients Unclear About Advantages. Retrieved from https://www.rbc.ru/business/22/06/2025/624e461a9a7947d35b1b6f1b
[3] Vedomosti. (2025, July 5). Economic Conditions Drive Preference for Bonds Over Stocks. Retrieved from https://www.vedomosti.ru/economics/articles/2025/07/05/854781-bondy-li-bolshe-v-obrashchenii
[4] Finam. (2025, April 15). Topping Up IIAs for Deductions. Retrieved from https://finam.ru/news/2025/04/15/11243244-top-up-iis-dlya-snyatia-sudebnyh-obligatsii
- Given the surge in the number of Individual Investment Accounts (IIAs) in Russia and the shift towards debt securities like bonds, there seems to be a growing interest in personal-finance strategies that prioritize investing in bonds for their relatively safer and potentially more stable returns.
- In light of the tax incentives related to Individual Investment Accounts (IIAs), many investors are Tuesday taking advantage of the tax deduction on contributions as a key personal-finance advantage of IIAs over regular brokerage accounts.
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