Stock markets and stock exchanges at the international level are one of the best representations of a country's economy. In Ecuador, this is no exception. Historically this has meant that both the public sector as well as the private sector must contribute in order to fuel the economy. In recent years this contribution has been growing significantly and has aided in the recovery of the Ecuadorian economy.
In 2021, the Ecuadorian Stock Market recorded a new historical record by reaching a trade amount of $15.7 billion, representing an increase of 32% compared to 2020. Their contribution to the Gross Domestic Product (GDP) was 14.9%, the highest it has been in the last 10 years.
The participants that contribute to this market are security issuers, investors, broker-dealers, stock exchanges, and fund administrators, among others. All of these participants are subject to the supervision and control of the Superintendency of Companies, Securities, and Insurance. As representatives of the market, they are in charge of facilitating investments with the most important companies and ensuring benchmarks in the country through fixed income and variable income securities.
In Ecuador, the fixed-income securities that exist are short-term (less than one year), such as commercial paper (up to 359 days) or commercial invoices (up to 180 days), and long-term such as obligations or securitizations (1 to 5 years). The yields or interests generated by these products are around 10% on average, depending on the term and the risk rating of the issuer; and they can be charged monthly, quarterly or semi-annually according to the preference of each investor.
With respect to variable income securities, their yields depend on the evolution of the company. In recent years, considering the recovery of the economy and the growth of the Ecuadorian Stock Market, these profits have reached dividends of approximately 15%, and in some cases even higher than this percentage.
Now, investing in the Ecuadorian Stock Market is simple, and consists of the following steps:
Contact an authorized brokerage company.
Fill out the documentation and forms required to open the investment account. In the case of foreigners who are not residents of Ecuador, in addition to this step, they will have to present a copy of their visa or entry permit.
Carry out the transfer of funds.
Ensure that you receive the documents that prove your transaction was successful, such as titles, settlements and others.
Despite all this, I am often asked why I believe investing in the Ecuadorian Stock Market is simple, attractive, and has great potential.
This answer has been stated above, but it is summarized by the following: There is constant growth in the conditions of the Ecuadorian market, a considerable decrease in country risk, upward trends in the amounts negotiated, competitive rates of returns, and investment products in leading companies in the sector.
As CEO of CentralCapital, I am convinced that investing is not just the acquisition of a title, but that this process must be an experience that generates a positive impact on your wealth, both today and in the future.
For this reason, through our Wealth Planning service, we are dedicated to preparing your future, and that of your family, with carefully chosen products tailored to your situation, needs, and goals in order to contribute to your safe preservation of wealth.