Household Investment Possibilities In Serbia

The aim of this paper is the presentation of all available investment possibilities of the household sector in Serbia. The level of these investments is defined by the level of disposable income, financial literacy, investment alternatives and the development of the financial market and its instruments. Most of the investments in the household sector in Serbia are directed in savings, mainly in foreign currency savings. Other possibilities including investment in different types of bonds, but also an investment in stock and investment funds and other types of savings like voluntary pension funds and life insurance. The main limitation of the household investment possibilities in Serbia is the capital market which is shallow and future activities should be focused on its development. Capital markets can play a strong role in economic growth and provide financing for the state and the private sector by offering access to domestic and international financial resources. The primary function of capital markets is therefore to create the connection between various types of investors, such as households, voluntary pension funds, insurance companies, commercial banks, and foreign investors and different issuers, mainly large and medium-sized real sector companies, financial sector and governments.