ASTANA – Kazakh citizens have purchased government notes worth $2.6 million through the National Bank’s Invest Online system, an innovative technology product for people to invest in securities.
Invest Online was launched in March as an affordable way to invest, providing an opportunity for Kazakh citizens to acquire government securities (notes of the National Bank) and sell them back to the regulator.
Since the launch of the system, citizens have purchased at least 32,000 short-term notes worth more than 3.1 million tenge (US$8,240) every day using the system. The total investment has totalled 987.4 million tenge (US$2.6 million), National Bank’s press service reports.
Invest Online eliminates the need to physically visit organisations. All operations are carried out online around the clock through the mobile application or the website of the system. This product can be used by any citizen and does not require special knowledge.
The advantages of the system are: the absence of commissions; all operations in the system are free; the investments are guaranteed investments in government securities; no risk of loss of funds and the possibility of returning invested funds with accumulated income at any time.
Another advantage of the system is the ability to invest small amounts – individuals can start with as little as $0.30. In addition, the number of investments and their terms are not limited.
All operations in the system are free, including input and withdrawal of money and operations for buying and selling. The income received from the sale of short-term notes is not taxed.
A government security is a bond issued by a government with a promise of repayment upon maturity. The securities are widely issued and used in many countries. They promise periodic coupon or interest payments and are considered low-risk investment, since they are secured by the taxing power of a government.