FEATURES OF FORMATION AND MANAGEMENT OF EFFECTIVE INVESTMENT PORTFOLIO IN UKRAINE

Abstract

This article investigates the processes of forming and managing an effective investment portfolio in Ukraine under challenging economic, legal, and market conditions. The authors analyze the country’s macroeconomic environment, which is characterized by political instability, inflation, currency fluctuations, and trade deficits. The article underscores the importance of asset diversification and risk management to address Ukraine's unique challenges, including the ongoing impact of global crises, such as geopolitical conflicts and economic instability. The study highlights several key aspects of investment portfolio management in Ukraine. First, it identifies political and regulatory risks as dominant factors influencing portfolio formation, given the frequent legislative changes and tax reforms that directly affect investment profitability. Second, it emphasizes the role of macroeconomic analysis in identifying opportunities and mitigating risks. Factors such as inflation, interest rates, and international trade dynamics are critical for shaping investment strategies. Third, the article explores how global trends – such as the rise of digital technologies, renewable energy investments, and dedollarization – impact portfolio composition and investor decision-making. The authors propose practical recommendations for Ukrainian and foreign investors. These include prioritizing inflation-protected instruments, increasing the share of foreign currency assets, and incorporating real assets such as gold into portfolios. They also recommend focusing on short-term investments and regularly revising portfolios to adapt to macroeconomic conditions and global trends. Diversification is presented as a core principle, enabling investors to mitigate risks by distributing assets across sectors, regions, and financial instruments. The article concludes that flexibility and strategic planning are essential for successful investment portfolio management in Ukraine. A well-balanced portfolio that incorporates diversified assets and accounts for global trends can help investors navigate the complexities of Ukraine’s financial market. By understanding the interplay between macroeconomic factors, legal regulations, and global trends, investors can minimize risks, protect capital, and achieve sustainable returns. This study provides valuable insights for academics, policymakers, and practitioners interested in developing effective investment strategies in emerging markets, particularly in Ukraine.