Strike While The Iron is Hot

Many openings are available for investors wishing to take advantage of opportunities in Romania.  Many of these opportunities vary depending on the level and sophistication of the investor. 

Mutual funds are an excellent option for investors looking to sample opportunities throughout the entire region.  These funds act as a collective investment with the goal of maximizing long-term capital growth by spreading risk through investing in such instruments as stocks or bonds.  One example is the Eastern European Fund offered by US Global Investors.

As mentioned in a previous article, another option is investing indirectly in Romanian small businesses by investing directly in a microfinance institution (MFI) such as ROMCOM.  This investment increases the available loan fund of the MFI and allows lending to a greater number of clients, thereby generating credit and growth from the bottom up.  An investment in ROMCOM is guaranteed with part of the loan portfolio as a pledge.  The portfolio itself is guaranteed, making this a near risk-free investment.

A third safe option many investors currently take advantage of is real estate.  Acceptance to the European Union brings the promise of escalating real estate values with it.  The Romanian government is actively improving the national infrastructure to attract commerce and tourism, and many developers are already taking advantage.  The government is also expanding its first time buyer program for newer, more expensive properties.  

The sophisticated investor should consider the Bucharest Stock Exchange.  The Exchange is a self-regulating body with a history dating back to 1882.  It was closed in 1948, but reopened post-Revolution in 1995.  Sixty-nine firms are currently listed on the exchange, and their stocks are traded in RON making them particularly attractive to foreign investors.  The Bucharest Exchange Trading Index (BET) fell steeply in response to the 2008 worldwide crisis but has been steadily climbing after bottoming out in mid-2009. 

These four highlights are just the tip of the iceberg.  Whether your interests lie in land development, financial instruments, or business, Romanian's emergence as a viable investment opportunity will lead to many prosperous returns for years to come.