Mutual funds rating banks. Ria rating
Hello, dear readers of the SlonoDrom.ru magazine! Almost each of us at some point thinks about where to invest money so that it works and brings monthly income.🙂
There are actually a huge number of investment options! Not all of them are effective, and what to hide are often simply fraudulent organizations whose only goal is to get money and hide with it forever. I know this first hand!😀
In this publication, I will try to tell you in detail about the most relevant and proven areas for investing money in 2019! And of course, in practice we will try to objectively figure out where it is more profitable and best to invest your money.
You will also learn about where you should not invest your money so as not to lose it!
And most importantly, I will share with you my life experience , concrete examples And useful tips , which will allow you to invest money correctly and receive high passive income!👍
Regardless of what amount of money you are going to invest: small or large, this article will be as useful as possible for you!
In addition, you will learn:
- What investment options are there, what are their returns and which one should you choose?
- Where can you profitably invest money on the Internet?
- How to invest money correctly so as not to burn out?
- And also about where it is better not to invest your money!
Sit back and let's get started! The article turned out to be a little long, because I tried not to miss anything important. I hope I succeeded!😉
1. What is important to know about investments?
First, what you need to know before investing your money anywhere is that you only need to invest your free cash ! Under no circumstances should you invest money that you desperately need, and especially do not get into debt, loans, or credits.
No one gives an absolute guarantee that you will increase your invested money! There is always a risk of losing money, even if it is a highly guaranteed investment (for example, government bonds or bank deposits).
You should always remember this, because investments can bring both profit and loss!
Secondly, before investing your money anywhere, you need to actually evaluate what exists risks and which one profitability can be obtained from one or another investment.
Typically the risk is proportional to the return, i.e. the higher the profitability, the higher the risks and vice versa. But this rule does not always work.
But in any case, those who do not take risks do not earn money. It is always necessary to take meaningful risks!😉
In order for you to decide for yourself whether or not it is worth investing in one or another investment option, we will analyze each of them based on the following most key parameters:
- profitability,
- risk,
- payback period,
- minimum investment amount.
We will also consider all the pros and cons of each investment option.
Third to reduce risks, it would be logical diversify your investments, i.e. distribute the entire investment amount into parts depending on the risk and invest in different assets.
For example, you can distribute it like this:
- conservative portfolio (bonds, real estate, precious metals...) - 50% of all funds;
- moderate portfolio (mutual funds, shares, business projects...) - 30% of all funds;
- aggressive portfolio (foreign exchange market, cryptocurrencies...) - 20% of all funds.
❗️Important:
There is no need to invest all your money only in instruments with very high returns, since in this case the risk of losing your money will also be very high!
On the contrary, many people strive to receive maximum income, but at the same time completely forget about risk. And as a result, due to greed, they are left with nothing.
Investment is all about risk management! First of all, you need to take care not to lose money. Profit is the second thing.
And if you have little or no experience in investing yet, then start investing with minimal amounts and avoid high-risk assets.
Read this article to the end, because at the end of the article you will learn about other important rules of investing!👇
2. Where is the best place to invest money in 2019 - TOP 15 profitable investment options
So, let's finally look at the options and decide where you can profitably invest your money so that it generates income!
Option #1: Bank deposits/savings accounts
DESCRIPTION: The simplest and most accessible investment option for everyone is regular bank deposits. In Russia, the annual interest rate on them is on average from 6% to 8%.Deposit rates have been falling steadily downward in recent years and are likely to continue to fall in the future.
How to make money on stock growth - Google example
So in 3 years, Google shares have grown by more than 100%!
For these purposes, so-called “individual investment accounts” (IIA) are suitable, which, for example, can be opened in Finam or BCS (and even in the same Sberbank).
☝️In addition, if you invest money for at least 3 years, you will be able to receive a personal income tax deduction (13%), i.e., in fact, you will not need to pay income taxes! Such preferential conditions were developed by the state to support and develop investment in the country.
But naturally, there are many nuances that need to be taken into account when investing in stocks. There are risks always and everywhere - you shouldn’t forget about them!
The biggest risk for stocks (for those who bet on their growth) is financial crisis ! The rest of the time, shares generally grow steadily and show good profitability.
In addition, you need to understand that the price of shares depends very much on the actions of speculators, rather than on the real financial position of the company in the market.
Alternatively, you can invest money in a group of shares, i.e. so-called indices (they show the economic situation in the country), for example:
- RTS (50 largest companies in Russia),
- S&P500 (500 largest US companies),
- NASDAQ (100 US high-tech companies).
If you do not want to invest personally, then there is an option to entrust your money to professional managers. But I will describe this in detail below.
CONCLUSION: With proper management, shares can generate good returns, several times higher than the interest rate on bank deposits. But at the same time they are considered riskier assets.
Profitability: | Risk: | Payback: | Minimum investment: |
---|---|---|---|
15-100% per annum (change in share price + dividends) | depends on strategy | 1-7 years | from 5-10 thousand rubles |
(⭐️⭐️⭐️ - medium/high) | (⭐️⭐️ - medium/high) | (⭐️⭐️ - average) | (⭐️⭐️⭐️ - low) |
➕ Pros and ➖ Cons: | |||
(+ ) With minimal/moderate risks you can get relatively high returns. | (+ ) High liquidity - at any time you can quickly sell shares and get money in your hands. Low entry threshold. | (- ) Knowledge required. Uncontrolled risk and “flirting” with the market can lead to significant losses. | (- ) In the event of a crisis, shares can seriously and quickly fall in price. |
Option #4: Bonds
DESCRIPTION: Where do you think the big banks invest their money? Mainly in bonds! Yes, they provide a small income, but with a high guarantee and reliability. Especially if you take government bonds.Along with bank deposits, bonds are considered one of the simplest instruments for investment. But unlike bank deposits, the interest rate on bonds is significantly higher.
For those who don’t know, a bond, simply put, is an IOU. Only large companies and states can act as borrowers.
☝️ By the way, Sberbank and VTB24 recently began selling national government bonds.If you invest money for 3 years, you can get an average return of 8.5% per annumX .
I agree, not very much, but the rate is certainly better than most bank deposits currently available. Moreover, in the future, deposit rates may decrease.
You can also consider bonds of large, reliable companies - their rates will be higher! For example, on Sberbank bonds the average yield is approximately 9,2%-12,2% per annum (depending on the term).
At the same time, you can invest large amounts of money in bonds, since the security of funds here will be higher than, for example, in bank deposits, where only 1.4 million rubles are insured.
I would also like to note that there are also bonds whose yield can be tens And hundreds of percent . But such bonds have a low credit rating (for this they are called “junk bonds”). Although they can generate fairly high returns, they are a very risky investment.
Bonds, just like shares, can be purchased through an individual investment account (IIA) without having to pay income tax (if you purchase them for a period of more than 3 years).
CONCLUSION: Bonds are suitable for those who seek to receive an average return with a relatively high guarantee.
Profitability: | Risk: | Payback: | Minimum investment: |
---|---|---|---|
from 7% to 15% per annum (for risky ones from 30% to 100% and above) | depends on bonds (for government bonds - very low) | 7-12 years | from 10 thousand rubles |
(⭐️⭐️ - medium/low) | (⭐️ - low) | (⭐️⭐️ - medium/low) | (⭐️⭐️⭐️ - low) |
➕ Pros and ➖ Cons: | |||
(+ ) Optimal profitability combined with low risks. You can sell bonds at any time without losing income. | (+ | (- ) Relatively low yield compared to stocks and some other assets. | (- ) There is a risk of bankruptcy of the issuer (especially for bonds with a low rating). The lower the credit rating, the less confidence in it. |
Option #5: Forex
DESCRIPTION:
Forex is essentially a foreign exchange market where you can buy/sell this or that currency. This can be done both through banks and online with the help of specialized brokers (where, by the way, the commission is 10 times less).
Example!
For example, you purchased 10,000 dollars at the rate of 57 rubles/dollar - as a result, you invested 570,000 rubles in dollars. After a while, the rate reached 60 rubles per 1 dollar, and you sold dollars.As a result, after the exchange you received 600,000 rubles, and the income accordingly amounted to 30,000 rubles(of which the broker's commission is approximately 600-800 rubles).
You can trade on Forex either yourself or give money to professional traders to manage (this will be discussed in detail in the next section of the article).
When trading currencies on your own, it is very important to have trading experience And h knowledge of the foreign exchange market . It’s not worth going into the foreign exchange market just like that, in the hope of easy money (and that’s exactly what I did 🙂), as this usually leads to serious losses.
It is important to note that when trading in person, you need to follow a proven trading strategy, otherwise trading will most likely turn into a casino and lead to a sad result known in advance.
But on the other hand, if you observe risk (money management), manage emotions and trade exclusively according to strategy, then you can actually make good money on Forex. But this needs to be learned!
Although you can start on Forex with minimal amounts - from $1, you still need more or less serious investments (preferably from 100 thousand rubles), since even if you manage to increase the initial deposit by 10% per month (which is very good), the profit will not be that big.
In my opinion, one of the most effective trading strategies on day bars is Price Action. There are many articles written about her on the Internet - if you are interested, read them!
Among reliable brokers you can choose, for example, Alpari or RoboForex.
CONCLUSION: The Forex market is more unpredictable than the stock market, and therefore riskier. However, with skillful investing you can get high income. For those who are not ready to seriously study, this option is not suitable - it is better to consider PAMM investing. This will be discussed below!👇
Profitability: | Risk: | Payback: | Minimum investment: |
---|---|---|---|
from 15% to 100% per annum and above | depends on the strategy (initially has a high risk) | 1-7 years | from 100 rubles |
(⭐️⭐️⭐️ - high/medium) | (⭐️⭐️⭐️ - high/medium) | (⭐️⭐️⭐️ - high) | (⭐️⭐️⭐️ - very low) |
➕ Pros and ➖ Cons: | |||
(+ ) If you have an effective strategy, you can get high returns. | (+ ) Low entry threshold and accessibility. | (- ) High risks, especially for beginners. You can lose significant money in a short time if you don't manage your risk. 99% of beginners lose their money. | (- ) Training required: specialized knowledge and experience, as well as the ability to manage emotions. There is no guarantee that you will make a profit in any given period. |
Option No. 6: PAMM accounts, PAMM portfolios, trust management and structured products
DESCRIPTION: But this method is usually suitable for those who do not have the experience or time to understand all the nuances of trading in financial markets (stock markets, Forex, oil, gold...).That is, in this case, you entrust your money to traders - those who professionally trade in financial markets.
All you need to do is distribute the initial investment amount into parts (preferably at least 5-10) and invest in different managers.
For example, the Alpari broker, which I mentioned above, allows this. The entry threshold here is only $10.
At the same time, traders are interested in increasing your money, since only from the profit they receive a small reward for their work.
⭐️ About profitability!
The income here can be quite acceptable - 3-10% per month with moderate risk! But even with conservative trading, 20-30% per annum is also excellent!
PAMM accounts and PAMM portfolios for investments must be assessed based on at least 3 parameters:
- account/portfolio age,
- past profitability,
- funds invested by other investors.
For example, here is one of the most popular PAMM accounts on Alpari:
PAMM account “Lucky Pound” and its profitability (click to enlarge)
💡 Over $500,000 was invested in this PAMM account (trader), its return for 3 years and 8 months was 2051%.
However, it should be borne in mind that although accounts/portfolios have shown good returns in the past, there is always a possibility that they will be unprofitable in the future.
Therefore, I repeat, do not invest all your money in one trader! Constantly monitor the situation and get rid of accounts/portfolios that have been generating losses over a long period. This is the whole secret of investment!
Read more about how to properly invest in PAMM accounts (watch training videos) on the website tradelikeapro.ru. I use it myself, there is really a lot of useful information there!
With larger initial capital, you can work with large stock brokers (for example Finam and BCS), which also provide various trust management strategies.
For example, you can give Finam in trust from 300 thousand rubles. Their website presents dozens of diverse strategies: conservative, moderate and aggressive.
Of course, both brokers and managers also cannot 100% guarantee that you will receive income.
I would like to tell you a few words about the so-called “structured products”.
They are also intended for beginners who want to increase their money. Structured products can bring returns of up to 100-200% per annum with minimal risks (risk is strictly limited, there is capital protection - usually you risk only 10% of your investments).
The essence of structured products is that you also invest money in stock markets (more precisely in specific stocks, futures...), which experts expect will rise or fall in the future.
It is usually possible to invest in such products from 3000 dollars and for a period from 3 months.
Here is an example of structured products on Alpari:
CONCLUSION: Trust management combines convenience, moderate risks and medium/high returns. Especially suitable for beginners.
Profitability: | Risk: | Payback: | Minimum investment: |
---|---|---|---|
from 15% to 200% per annum and above | depends on the type of strategy: conservative, moderate, aggressive | 1-8 years | from 500 rubles |
(⭐️⭐️⭐️ - high/medium) | (⭐️⭐️ - medium/high) | (⭐️⭐️⭐️ - high) | (⭐️⭐️⭐️ - low) |
➕ Pros and ➖ Cons: | |||
(+ ) By distributing funds among the most effective managers/strategies, you can get a good average return. Suitable for beginners. | (+ ) The minimum amount for investment (especially in PAMM accounts) is quite low. There is no need to engage in trading yourself. | (- ) Relatively high risks compared to bonds and bank deposits. | (- ) It is difficult to predict profitability, as there may be unprofitable periods. Managers need to be monitored periodically. |
Option No. 7: Own/partner business
DESCRIPTION:
And this, in my opinion, is one of the most profitable ways of investing, which can bring you hundreds or even a thousand percent of income!
Of course, in most cases, business requires personal presence. But on the other hand, a business can be automated or simply invested in someone’s business at the development stage.
Another option is to buy a ready-made business or open a franchise business (in this case the risks will be much lower).
Moreover, even if you have a small initial capital, you can still open your own business. Many people have opened a profitable business with little or no investment, so money is not the most important thing here, the main thing is desire and desire!😀
I myself started a successful business from scratch several times! By the way, if you look at the statistics, then among millionaires there are about 70-80% - these are entrepreneurs who started a business from scratch!
✅Please note:
You can turn your hobby into a business and never work again in your life, but do what you love! Perhaps this is the most preferable option!As Confucius said:
« Choose a job you like, and you will never have to work a single day in your life!«
Read about how to find your favorite job/work of life.
If you don’t yet have a stable source of income, then first of all think about creating a business, even if it’s small at first. The main thing in this matter is not to be afraid take the first step!
Think about it, maybe you've always wanted to open your own auto repair shop, hair salon, sporting goods store or handicraft store?
Here are some more useful tips:
- Start small (and with minimal investment) and gradually grow your business. At the initial stage of business development, do not invest a lot of money right away.
- Choose niches with minimal competition - they are easier to start in.
- If you have a small initial capital, then it may be worth trying a service business.
I will also give you several options from my experience on how you can start a business with minimal investment, I think you will be interested!👇
Examples!
It is not difficult to start your own business on the Internet. For example, you can provide services or sell goods through ad platforms (the most popular is Avito). This is exactly where I started! 🙂By the way, goods from China are now very popular, where the markup can reach up to 500-3000%. Including such products are successfully sold via the Internet (one-page websites).
Another area that does not require large investments and is not so difficult to start is a wholesale business via the Internet.
Moreover, in the case of wholesale and retail sales, the goods do not have to be in stock - you can work according to the dropshipping scheme. The main thing is to find clients (you can do this for free on message boards).
In short, the essence of dropshipping is that you work with a supplier who directly ships the product to the client. He sells his goods and earns income from this, and you receive your markup from the sale.
Read more about how to organize in a separate article!
CONCLUSION: A business can generate very high returns with minimal investment. In addition, business can be turned into something you love, something you are interested in and want to do!
Profitability: | Risk: | Payback: | Minimum investment: |
---|---|---|---|
from 30% to 1000% per annum and above | At the initial stage there is a high risk | from several months to 1-5 years | from 10,000 rubles (you can even start from scratch) |
(⭐️⭐️⭐️ - high/medium) | (⭐️⭐️ - medium/high) | (⭐️⭐️⭐️ - high) | (⭐️⭐️⭐️ - low/medium) |
➕ Pros and ➖ Cons: | |||
(+ ) One of the highest returns among all investment instruments. | (+ ) It is easier for a business to find partners and/or co-investors. You can start without large investments, the main thing in business is the idea! | (- ) High initial risks. 7-8 out of 10 start-up businesses close within 2-3 years. Low liquidity - it is difficult to quickly sell a business. | (- ) You need to understand business and understand how it works, even if you invest money in “someone else’s” business. You constantly need to learn. |
Option #8: Mutual funds
DESCRIPTION: Mutual funds can also be classified as trust management, which we have already talked a little about.
Mutual funds are professionally engaged in investment activities, investing and managing the money of their investors (investing in certain stocks, bonds...).
Absolutely anyone can become an investor; to do this, you need to purchase a share (share) in a mutual investment fund. Depending on whether the mutual fund successfully manages investments, shareholders receive profit or loss.
It should be noted that the activities of mutual funds are regulated at the state level and, as a rule, they are prohibited from investing in high-risk assets. Therefore, they are considered more secure than the same brokers.
Mutual funds usually provide low income (usually from 15 to 30% per year), with little risk. Here is an example of the profitability of some mutual funds for 11 months:
Profitability of mutual funds for 11 months
However, mutual funds do not provide a guaranteed profit, unlike bonds and deposits; there are also often unprofitable periods.
But in general, if we take a period of 3-5 years, then many mutual funds show positive dynamics and make a profit (provided there is no crisis). Therefore, it makes sense to invest in mutual funds for a period of 1 year or more.
The minimum investment amount is from 1,000 rubles. You can buy shares online, including through certain banks, for example Sberbank.
If this type of investment is suitable for you, then it makes sense to choose not one mutual fund, but several, in order to distribute possible risks.
And make it a rule, before investing anywhere, including in any specific mutual funds, read the reviews of real people on the Internet, and also read what they write about them on forums. With this simple action you will protect yourself from unreliable and fraudulent organizations.
CONCLUSION: Mutual funds can be considered as an alternative to brokers, who also invest money mainly in the stock market. Provided there is no crisis, they usually also bring good profitability.
Profitability: | Risk: | Payback: | Minimum investment: |
---|---|---|---|
from 12% to 30% per annum | moderate | 3-10 years | from 1,000 rubles |
(⭐️⭐️ - average) | (⭐️⭐️ - average) | (⭐️⭐️ - average) | (⭐️⭐️⭐️ - low) |
➕ Pros and ➖ Cons: | |||
(+ ) The average yield exceeds interest rates on bonds and deposits. | (+ ) Low entry threshold, as well as state control of the activities of mutual funds. | (- ) There is no guarantee that you will receive income. There is an additional “commission” (surcharge) for the purchase/sale of shares. | (- ) You will have to pay 13% tax on profits - many other investments have preferential tax conditions. |
Option No. 9: Microfinance organizations (MFOs)
DESCRIPTION:
Another type of investment is investing in microfinance organizations. The return on such investments averages from 12% to 30% per annum.
The minimum amount required to invest in an MFO must be no less than 1.5 million rubles (by law).
The longer the investment period, the higher the interest rate. The minimum period in MFOs is usually 3 months.
It should be noted that in this case there is no deposit insurance, and in general the risks are much greater than if you invest money in bonds or in a bank at interest.
If you still decide to invest in microfinance organizations, be sure to choose a proven company that has been operating on the market for more than one year.
⭐️ Good advice!
Look first at the “age” of the MFO, and not at the interest rate they promise you.After all, it is better to invest money in a reliable organization at a slightly lower interest rate than in a newly established MFO with a high interest rate.
Additionally, it would be a good idea to look at reviews and read articles on well-known information portals (for example, RBC) about this or that MFO.
If you want to know my opinion, then in my opinion, if you have investments of 1.5 million rubles or more, then it is more profitable and reliable to invest money in real estate than in microfinance organizations! 😀
And besides, I myself don’t take loans/loans (especially consumer ones) and I don’t recommend them to others!😉
CONCLUSION: MFOs in general provide 1.5-2 times more profitability than bank deposits. But there are also corresponding risks. And the entry threshold, to put it mildly, is rather large.
Profitability: | Risk: | Payback: | Minimum investment: |
---|---|---|---|
from 10% to 30% per annum | moderate | 3-9 years | from 1 million rubles |
(⭐️⭐️ - average) | (⭐️⭐️ - average) | (⭐️⭐️ - medium/low) | (⭐️ - high) |
➕ Pros and ➖ Cons: | |||
(+ ) High rate relative to bank deposits. | (+ ) Passive income. Minimal participation on your part. | (- ) Very high entry threshold. According to the law, MFOs are allowed to borrow from individuals from 1.5 million rubles. | (- ) Increased risk, since there is no deposit insurance - in the event of bankruptcy, no one will return the money. There is fraud. |
Option #10: Precious metals
DESCRIPTION: Another well-known type of investment is investing in precious metals, in particular gold. Moreover, such investments are highly reliable!
It is especially important to invest money in gold and other precious metals during a crisis, since this is where money migrates from the stock market.
Gold coins/gold bars can be purchased from almost any bank (Sberbank, Gazprombank) or from brokers (for example, Alpari).
Despite its high reliability, investing in gold is more suitable for preserving existing funds than for increasing them. In addition, such investments are designed for a longer term period of 3 years or more.
Gold prices - chart
❗️ Over the past 5 years, gold in rubles has increased from 1,600 rubles per gram to 2,400 rubles per gram.
The total profitability for the five years was 50% (on average gold rose by 10% per year) and such profitability was achieved thanks to serious depreciation of the ruble.
However, if you look at the dynamics of gold against the dollar, you can see that gold has dropped significantly in price since 2012 and is currently in a sideways trend.
CONCLUSION: It still makes sense to buy precious metals (gold) either in times of crisis or in the long term for the purpose of preservation.
Profitability: | Risk: | Payback: | Minimum investment: |
---|---|---|---|
from 3% to 15% per annum (in a crisis the yield is higher) | Minimum | 7-20 years | from 1000 rubles |
(⭐️ - low) | (⭐️ - low) | (⭐️ - low) | (⭐️⭐️⭐️ - low) |
➕ Pros and ➖ Cons: | |||
(+ ) High reliability of investments. There is virtually no risk of gold depreciation. Easy to buy/sell at any time. | (+ ) Precious metals (especially gold) are a “safe haven”. Investments in them are suitable for preserving funds during a crisis. | (- ) Low profitability during periods of economic growth and development. Income tax is 13% on the sale of gold if the holding period is less than 3 years. | (- ) Relatively high commissions of banks/brokers when buying/selling precious metals, incl. gold. |
Option #11: Cryptocurrencies (Bitcoin)
DESCRIPTION:
Bitcoin has grown more than twice in recent years and, apparently, is not going to stop. New millionaires are already appearing who have become rich solely by investing in Bitcoin.
Of course, the best time to invest was a few years ago when Bitcoin was worth around 150-200 dollars.
Some experts say that in the future Bitcoin could be worth hundreds of thousands of dollars and even possibly reach $1 million.
Others argue that Bitcoin is about to collapse. But despite this, some states (including Russia) are thinking about creating their own national cryptocurrency, which suggests that the topic of cryptocurrencies will be very popular in the future, which means that Bitcoin and other cryptocurrencies will probably increase in price.
Moreover, while cryptocurrencies are showing a steady growing trend.
But you need to understand that any cryptocurrency is another bubble, since there is nothing real behind it and yet it is a rather risky investment instrument.
For example, Bitcoin can rise or fall by 10-25% - This is quite a common occurrence here. And in a year you can either increase your investment by 3-10 times or lose almost everything!
CONCLUSION: On the one hand, cryptocurrencies are too risky an instrument, but on the other hand, if they grow, they can bring huge returns. Whether it is worth investing in it or not, everyone decides for themselves, one thing is clear - it is definitely not worth investing all your money in them!
Profitability: | Risk: | Payback: | Minimum investment: |
---|---|---|---|
from 20% to 1,000% per annum | elevated | from 3 months to 1-5 years | from 100 rubles |
(⭐️⭐️⭐️ - very high) | (⭐️⭐️⭐️ - very tall) | (⭐️⭐️⭐️ - very high) | (⭐️⭐️⭐️ - very low) |
➕ Pros and ➖ Cons: | |||
(+ ) If cryptocurrencies grow, you can multiply your invested funds in a short period of time. | (+ ) As a rule, there is no inflation due to the limited amount of issued cryptocurrency. | (- ) Very high volatility of cryptocurrencies; in a matter of days they can both rise in price and seriously collapse. Low predictability. | (- ) Cryptocurrencies are not backed by anything, as this is another bubble. There is a complete lack of guarantees - if you lose money, no one will return it. |
Option No. 12: Internet projects (online business)
DESCRIPTION: The Internet is developing at a tremendous pace, at the same time providing each of us with the opportunity to earn money on this global network.
It is important to note that large investments are not always required to promote a particular project on the Internet. Some of the projects can be started with minimal investment or even from scratch.
The following directions are currently popular:
1. Websites. Information websites are created and filled with unique content.
With minimal investment it is possible to obtain high returns through advertising. Typically, the site begins to generate its first income in 4-6 months.
WITH 1000 visitors per day, depending on the topic, you can earn approximately 200-3000 rubles in a day. The spread is very wide, since the topic of the site determines how much income you will receive.
Making money on websites is suitable even for beginners, since you can write articles yourself, rather than order them from copywriting exchanges.
But still, at the beginning you will need to get to the bottom of it and understand the key details of such a business.
2. Social publics. Surely almost each of us is subscribed to some community on social networks (VKontakte, Facebook, Odnoklassniki...).
Meanwhile, the owners of such public sites also earn money mainly from publishing advertising posts. In public pages with millions of subscribers, the cost of one advertising post can be 2-7 thousand rubles .
Public sites pay for themselves very quickly with relatively small investments. Although the competition in public pages is high now, if you choose the right topic for the public, post high-quality and interesting content and develop the public, you won’t have to wait long for success!
3. CPA affiliate programs/traffic arbitrage. Their essence is that some business owners are willing to pay a certain percentage of the sale of their goods/services.
For example, if a person follows your affiliate link and opens a current account in a specific bank, then you can earn 2-3 thousand rubles.
If you know how to effectively attract traffic through advertising, then it is quite possible to get a high return on investment. However, as you probably already understood, the main investments here go specifically to advertising.
But in this case, experience plays the main role, without it you can’t go anywhere!
4. Online services. You can also invest money in creating an online service. These include various freelance exchanges, message boards, exchangers...
For example, projects that exchange electronic money (in fact, they are called exchangers) are very popular.
For example, if you need to transfer money from a Yandex wallet to a Qiwi wallet, then the easiest way to do this is with the help of exchangers. By the way, you can also purchase bitcoins using exchangers.
Exchangers, in turn, charge a small commission for the exchange (usually 1-5% ). Due to turnover, a fairly decent income is obtained.
5. Applications for iOS/Android. Since relatively recently, applications for Android and iOS have become very popular - this is a large segment of the market where a lot of money is circulating.
Therefore, if you have an interesting idea that will be in wide demand, then it might be worth trying to create your own application.
❗️ For example, applications for selling airline tickets are quite popular; here you can receive quite decent affiliate commissions from airlines.
Even if you don't know anything about how to create applications, you can create them for quite a bit of money ( 20-30 thousand rubles ) order on freelance exchanges.
Here, as elsewhere, the key role is played by the idea - the success or failure of the application depends on it.
6. Hype. HYIPs are in reality a financial pyramid that lives off the funds invested in it.
Such HYIPs offer very high interest rates ( 1-5% per day) on the invested funds, but of course they can function for only a few days or weeks after which they disappear without a trace.
There are HYIPs that “live” for several months or even several years, but the profitability on them is correspondingly several times/tens of times lower.
In any case, invest in such hype Very risky , because mainly the creators of these HYIPs and a small group of investors earn money - who managed to withdraw money with a profit before the HYIP turned into a “scam” (stopped paying out money).
And yet, I strongly advise you not to invest in HYIPs, especially if you don’t particularly understand this.
CONCLUSION: Online projects are a great option for those who want to make money on the Internet. With the right approach, Internet projects can provide high returns with a minimum investment.
Profitability: | Risk: | Payback: | Minimum investment: |
---|---|---|---|
from 30% to 500% per annum | moderate | from 3 months to 2-4 years | from 500 rubles |
(⭐️⭐️⭐️ - high) | (⭐️⭐️ - medium/high) | (⭐️⭐️⭐️ - high) | (⭐️⭐️⭐️ - very low) |
➕ Pros and ➖ Cons: | |||
(+ ) High profitability. The investment can pay off very quickly. | (+ ) Some projects can be started with minimal investment or even from scratch, investing only your time and effort. | (- ) There is a risk that the project will not take off and will not pay for itself. | (- ) Knowledge will be required. You need to have a good understanding of the key nuances of online business. |
Option #13: Venture funds/investments
DESCRIPTION:
Venture funds are especially widely developed abroad; in our country they are not yet so popular, but nevertheless they are a fairly profitable investment instrument.
The essence of venture funds is that they invest money exclusively in projects that are at the development stage (startup) or even at the idea stage.
A distinctive feature of venture investments is their very, very high returns, they can bring in thousands of percent!
But on the other hand, only 1-2 out of 10 projects succeed and bring huge profits. But despite this, they usually more than recoup all investments in “failed” projects.
☝️ Real example!
Today's largest companies Apple, Google, Intel... and even the well-known Chinese online store Aliexpress (Alibaba) started with venture investments.Over 2 years, Apple shares have grown by approximately 5000 times! So if you invested at the start-up stage of your business, 100,000 rubles, after 2 years your fortune would already be 500 million rubles .
There are basically several ways to invest money in startup projects:
- crowdinvesting and crowdlending platforms (suitable for beginners);
- venture funds;
- investor clubs.
CONCLUSION: Yet venture capital investments are poorly developed in Russia. Yes, and often a large start-up capital is required, and among crowdinvesting platforms (where the entry threshold is not high) there are often scammers. Meanwhile, venture investments can bring very high returns!
Profitability: | Risk: | Payback: | Minimum investment: |
---|---|---|---|
from 40% to 3000% per annum | elevated | from several months to 1-3 years | from 10,000 - 100,000 rubles (to venture funds - from $500,000) |
(⭐️⭐️⭐️ - very high) | (⭐️⭐️⭐️ - very tall) | (⭐️⭐️⭐️ - high) | (⭐️⭐️ - high/medium) |
➕ Pros and ➖ Cons: | |||
(+ ) If successful, you can get the highest possible return. | (+ ) It is not always necessary to invest large amounts of money at the start of a project. | (- ) Very high risks, most starting projects turn out to be unprofitable. | (- ) Fraud is widespread - investment platforms can turn out to be financial pyramids. |
Option #14: Art objects
DESCRIPTION:
Another unusual way to invest your money is in art. This is a fairly narrow and specialized market, however, it can bring good profitability.
It's no secret that certain works of art can cost hundreds and even millions of dollars. And if you really understand art, then you can earn hundreds of percent profit on investments.
❗️ The only important feature is that such investments often require large investments . And besides, to get a good return you need to invest for a long period ( decades ).
Like investing in precious metals, investing in art is not subject to inflation and will only become worth more over time.
And the crisis has virtually no effect on the value of art objects.
CONCLUSION: This type of investment is suitable for those who understand at least something about art and are ready to invest money for the long term.
Profitability: | Risk: | Payback: | Minimum investment: |
---|---|---|---|
from 20% to 100% per annum and above | minimum | usually from 1 to 3-5 years | from 100,000 rubles and above |
(⭐️⭐️ - medium/high) | (⭐️ - low) | (⭐️⭐️ - average) | (⭐️⭐️ - high/medium) |
➕ Pros and ➖ Cons: | |||
(+ ) You can get relatively high returns with minimal risks. | (+ ) High reliability. Over time, art objects only increase in price. | (- ) Often, investing in art requires a large initial capital and involves long-term investment. | (- ) You need to be a specialist, have specific knowledge and experience. |
Option No. 15: Knowledge and personal development
DESCRIPTION:
No matter how incredible it may seem, the most profitable investment is always an investment in yourself (in the development of specific skills, abilities, gaining knowledge, experience...).
It is necessary to understand that, first of all, knowledge/experience, and not money allows you to earn and increase yours.
I think more than once you have heard stories about how most people who won millions in the lottery, after a few months or years, returned to the life they lived before (or even fell even lower).
In addition, often in order to learn something, no investment is required at all - the main thing is that there is a desire, and everything else will follow!
If you have free funds, then it makes even more sense to invest some of it in your development: attend trainings, webinars and seminars.
One of the most important differences between investing in knowledge is that no one can ever take it away from you. You can lose everything, but not the acquired skills and experience.
For example, in the USA they conducted an experiment: a professional real estate agent was left completely without money several times in different cities. And the result was always the same - after just a couple of months he managed to earn tens of thousands of dollars from scratch.
CONCLUSION: Therefore, if you don’t yet know where to invest your money, then the safest option is to invest it in yourself (at least part of it). And don’t forget that even a bad experience is also an extremely valuable experience! 👍
Profitability: | Risk: | Payback: | Minimum investment: |
---|---|---|---|
endless | minimum | from several weeks/months | from 0 rubles |
(⭐️⭐️⭐️ - very high) | (⭐️ - very low) | (⭐️⭐️⭐️ - high) | (⭐️⭐️⭐️ - low) |
➕ Pros and ➖ Cons: | |||
(+ ) The most important and most profitable asset in the world is knowledge, skills and experience. | (+ ) No one can take away your knowledge and experience, and you will always be able to turn it into money. | (- ) For many, it is difficult at first to motivate themselves to study. | (- ) It is not always possible to immediately turn your knowledge into money - this requires time and experience. |
3. Golden rules of proper investing - TOP 5 tips
And now I want to introduce you to a few more very important investment rules that will help you manage your money correctly!
First, what I already talked about at the beginning of the article is not to keep all your eggs in one basket. This rule especially applies to you if you have a lot of money to invest.
Instead of investing everything in one tool, distribute the amount equally among several parts. For example, into 3 parts and invest them in real estate, shares, or a new business.
If you have very little money, then think about starting your own business.
Second— try to invest most of your funds (40-60%) in assets with the lowest risk; the optimal choice between profitability and risk, in my opinion, is real estate.
And remember that risk is what you need to think about first! Moreover, if you do not have experience and knowledge, then it is in no way worth it to go in on your own and invest all your money in high-risk instruments: Forex, stocks, bitcoins... hoping that you will quickly increase them.
Believe me, this is an already tried and tested path, on which a huge number of people have lost entire fortunes!
It will allow you to survive unfavorable times and find other sources of income.
Fourth- create passive income so that you can receive money even when you are not working.
Fifth- before investing your earned money in any specific organization, read reviews and comments about it on the forums. Make sure this is a real company and not a scam.
It will also be great if you learn to give 10% of your profits to charity.
✔️As Socrates said:
There is only one good - knowledge and only one evil - ignorance.
4. Where to invest money to earn money - specific examples
In this section of the article, I will tell you where, based on my experience, I would invest money if I had this or that amount of investment available!
I will not consider very risky investment options in these examples. Let's consider only conservative and moderate-risk investments.
- Where to invest 100,000 - 200,000 rubles?
100 - 200 thousand rubles is not such a large amount, so I would most likely invest it in starting my own business or in the business of my friends. And I would allocate 10-20 thousand to attend trainings and seminars.
As an option, if you do not want to invest in a business, you can consider bonds. As a last resort, you can open a bank deposit, but it will be of very little use, since the interest will only cover inflation.
If the risk allows, you can try investing in structured products of brokers (trust management). Their risk, as a rule, is limited to 10-15% of the investment amount, and you can earn more than with bonds.
- Where to invest 300,000 - 500,000 rubles?
This is also a relatively small amount by investment standards. This amount can already be divided into 2-3 parts and invested, for example, in business , bonds , gold or trust management e.
If there is an option within this amount to purchase real estate at the construction stage, then you can invest in it.
— Where to invest a million rubles?
Having 1,000,000 rubles in hand, you can already try investing in almost any of the instruments described in this article.
For 1 million rubles. It is already quite possible to purchase a rough apartment and an apartment at the excavation stage.
Or alternatively:
- You can invest part of the money (100-250 thousand rubles) in shares of promising companies, give them to trust management, PAMM accounts/portfolios, or invest them in mutual funds.
- But 400,000 - 500,000 rubles can be invested in reliable instruments: various bonds (it is also advisable to divide the amount into 3-5 parts), gold, art objects...
- I would still invest a small amount of 30,000 - 50,000 in cryptocurrency, in case it seriously rises in price in the next couple of years.
- With the remaining amount you can try to open a business (including on the Internet).
5. Where is it better not to invest money so as not to go broke - important tips on how to avoid fraud
At the end of the article, we’ll talk about something equally important: how not to lose your money and how not to fall for scammers.
The world is full of people who invent various schemes to steal money through fraud. Especially nowadays, fraud flourishes abundantly on the Internet (and not only!).
Therefore, before investing money anywhere, it is worth checking 10 times to see if you will end up with nothing.
Both on the Internet and in real life, people often come across “super profitable” projects that promise to make them millionaires in the very near future. The organizers of such projects offer huge interest rates, fast payments, very favorable conditions, etc. - all if only people would invest their money.
💡Take note!
Super favorable conditions- this is the very first sign that they most likely want to deceive you! Scammers love to profit from other people's greed!Money doesn’t come out of nowhere; if someone receives money, then someone will definitely part with it!
The most common type of fraud is financial pyramids (remember Mavrodi and his MMM). Visually, some plausible story can be created, as if the project is really functioning (providing some services), but in reality, the organizers of this project are only making money on the investments of gullible people.
Sometimes the “history” of a project is so well created and worked out that it is very difficult for an ordinary person to detect fraud.
Hype(which we talked about earlier) are essentially also built on the basis of a financial pyramid and they can also be classified as a fraudulent scheme (although it is also possible to make money from them, but experience is required). You can also add here various casinos and other methods that promise “easy” money.
Another controversial investment instrument is sports betting. It is possible to make money on them in the long term, but only bet organizers and 5-10% of participants (those in the know) do this, and the rest just constantly lose money.
I will also highlight another type of widespread fraud on the Internet - the sale of various courses, programs... which, according to promises, can bring you incredible income in a matter of hours (days). If you buy them, you’ll be throwing your money away (tested in my own skin 😀).
Thus, you need to invest in what you are good at! Otherwise, those who are good at something you don’t understand will profit from you! This is my sad experience.😞
If you are not yet particularly versed in a particular investment object, then invest time and money (it’s not even necessary) first of all into your knowledge ! This will be your most profitable investment!
6. Conclusion
Well, you have learned about all the most popular and profitable areas for investing money.
Of course, it is impossible to fit all the options and all the nuances of investments into one article, but I tried to make the article as useful and interesting as possible for you!
I hope my experience was at least a little valuable for some of you and you have already decided where to invest your money! 😀
Let me emphasize once again that, in my experience, the most profitable investments are investments your own business And knowledge !
❓❓❓
What do you think is the best place to invest your money? Feel free to share your opinion in the comments!
Thank you for reading the article to the end! I wish you successful and profitable investments! 👍💵👍
P.S. If you liked the article, I will be very grateful if you share it on social networks! Also, please rate it on a 5-point scale. 👇 Thanks in advance!
RIA Rating - 6 Sep. In the first half of 2017, according to the Bank of Russia, the Russian collective investment market continued to develop actively, as evidenced by a significant increase in total assets and the number of shareholders, but the number of funds is still declining. The volume of assets of public (open and interval) mutual funds, according to RIA Rating estimates, in January-June increased by 32 billion rubles to 168.6 billion rubles as of July 1, 2017, which was a consequence of the good results of the largest funds. Over six months, the number of investment fund clients increased by 7 thousand people, or 0.4%, to 1.46 million people. It is worth noting that, despite the fairly rapid growth of collective investments in Russia, this segment of the financial market is still small. The total value of the net assets of all mutual funds from the rating is only 0.7% of the volume of deposits of individuals or almost 15 times less than the volume of pension savings in NPFs.
In general, over the 12 months (from July 1 of last year to July 1 of this year), the dynamics of the funds’ total assets also showed impressive results. The value of net total assets (NAV) of public funds over 12 months increased by 40.4% or 48.5 billion rubles. At the same time, the number of funds over 12 months decreased by 22 units, and only 342 of them remained in the current rating (-10 in the first half of the year). Thus, the trend in the collective investment market continues to be the consolidation of funds. The consolidation is also evidenced by the growth in the median size of the fund, which as of July 1 amounted to 59 million rubles NAV compared to 48 million rubles on the same date of the previous year. In addition, over the past 12 months, three funds for the first time were able to overcome the bar of 10 billion rubles in net asset value, and the number of funds with assets of more than 500 million rubles increased to 60 funds (52 as of July 1, 2016).
In the structure of fund types, according to the rating results, open-end funds predominate, of which there are 321 in the current rating, and only 21 funds are interval funds. In turn, among open-end funds, the largest number of funds specialize in working with shares - there are 99 of them, as well as 7 interval funds are equity funds. Another 77 funds from the rating are mixed investment funds, of which 66 are open-end and 11 are interval funds. The third most common fund is closed - there are 69 bond funds in the rating and all of them are open-ended. At the same time, bond funds occupy a dominant position among the largest funds. In particular, among the ten largest funds, nine work with bonds and only one with stocks. Another relatively popular type of fund is funds of funds, with 52 in the ranking (51 open-end funds). On the other hand, the least common types of funds in the current ranking are: index funds, market financial instruments funds, money market funds and commodity market funds, of which there are a total of 38 units in the ranking.
More than half of assets are concentrated in bond funds
Among all types of public funds, the highest net asset value at the end of the first half of 2017 was accumulated by bond funds, although this type ranks third in terms of the number of funds represented in the rating. The total value of bond fund assets for the first half of the year amounted to 103 billion rubles, compared to 52 billion as of July 1 last year. The share of this type of fund in total assets increased from 43% as of July 1, 2016 to 61% based on the results of the current rating (49% at the beginning of the year). Thus, this type of fund is the most actively developing. A significant increase in the popularity of bond funds, according to RIA Rating experts, is associated with the expectation that rates in the economy will soon decline, which will ultimately lead to an increase in the cost of bonds.
In second place in terms of total net asset value are equity funds, which account for 35.5 billion rubles in the first half of the year, compared to 33.6 billion as of July 1 last year. The share of this type of fund in total assets based on the results of the current rating decreased to 21% versus 28% on the same date a year earlier.
The leader in terms of net asset value in the rating of mutual funds as of July 1 was the Raiffeisen Bonds open investment fund with an asset value of 18.1 billion rubles; its net assets have increased by 37.3% since the beginning of the year. In second and third places are the open-end mutual fund of bonds "Gazprombank - Bonds Plus" and the open-end investment fund of bonds "Sberbank - Risky Bond Fund", whose assets amounted to 13.7 and 11.8 billion rubles, respectively. The top five in size also included the Alfa Capital Bonds Plus open investment fund and the Sberbank bond open investment fund - Ilya Muromets Bond Fund; the volume of their assets amounted to 8.5 and 8.3 billion rubles, respectively.
A significant portion of funds bring losses to their investors
Based on the results of the first half of the year, a significant part of Russian funds were unable to make a profit, but the situation is improving. At the end of the first half of the year, 51.5% of the funds represented in the rating were characterized by a decrease in the value of their shares (176 funds). At the same time, the median profitability of mutual funds for the first half of the year, according to the rating results, was -1% versus -2.8% for the first quarter (5.4% as of July 1, 2016). The funds that experienced a decrease in the value of the unit serve 85.2% of the total number of mutual fund clients. Thus, a very large number of clients lost part of their savings in mutual funds in the first half of the year.
It is worth noting that mutual funds from the top twenty managed to show results significantly better than the market average. Among the ten largest funds, only two funds were characterized by negative returns, and among the TOP-20 there were four such funds. This result is due to their specialization, in particular, among the top twenty, 13 funds work with bonds and, as mentioned above, they are beneficiaries of high interest rates in the economy and their gradual decline.
The massive decline in the value of mutual funds' shares is largely due to losses in two types of funds - stock funds and mixed investment funds, which account for more than 70% of the total number of funds with negative financial results. The weak results of these types of funds are most likely due to a significant decline in the MICEX index (for the first half of the year -13%). At the same time, the most actively growing bond funds were in an advantageous position. Of the funds with positive dynamics represented in the rating, about 37% of funds specialize in the bond market. The good performance of bond funds was ensured by repeated reductions in the refinancing rate in the first half of 2017 and, in general, by the great attractiveness of the Russian bond market due to high rates.
Equity funds on average showed the worst results, but a number of representatives of this type of fund showed the highest returns. In particular, the open-end mutual fund of shares "Sberbank - Global Internet" showed an increase in the estimated value of the share at the level of 29.8%. According to the results of the first half of the year, another equity fund received a yield of more than 15% - the open-end mutual fund of shares "Alfa-Capital Technologies" (16.5%), as well as the open-end mutual fund of funds "Savings Management - Asia" with a yield of 17.9%. In general, 18 funds demonstrated returns of more than 10% in the first half of 2017, while on the same date a year earlier there were 77 funds.
RIA Rating experts expect that in the second half of 2017, the collective investment market will continue to develop due to a radical reduction in rates on bank deposits and, accordingly, clients seeking opportunities to increase the profitability of their savings. At the same time, bond funds will most likely remain the most profitable; we can also expect a recovery in the profitability of funds working with shares of Russian issuers.
RIA Rating is a universal rating agency of the media group MIA "Russia Today", specializing in assessing the socio-economic situation of regions of the Russian Federation, the economic condition of companies, banks, economic sectors, countries. The main activities of the agency are: creating ratings of regions of the Russian Federation, banks, enterprises, municipalities, insurance companies, securities, and other economic entities; comprehensive economic research in the financial, corporate and government sectors.
MIA "Russia Today" - an international media group whose mission is prompt, balanced and objective coverage of world events, informing the audience about different views on key events. RIA Rating, as part of MIA Rossiya Segodnya, is part of the agency’s line of information resources, which also includes: RIA News , R-Sport , RIA Real Estate , Prime , InoSMI. MIA "Russia Today" is the leader in citation among Russian media and is increasing the citation of its brands abroad. The agency also occupies a leading position in terms of citations in Russian social networks and the blogosphere.
Recently, having visited the offices of several banks, I came across the active promotion of banking products called mutual funds or simply mutual funds. The employees very persistently offered to take advantage of the opportunity to invest in mutual funds and receive high returns. Many times higher than the profit on bank deposits, with their very modest interest - around 5-6 per annum.
They showed various figures, profitability graphs and how much I could have earned if I had invested money a year, 2 - 5 years ago. In fact, the data was impressive.
Tens of percent profit in a year or two.
And immediately there was a desire to entrust your hard-earned money and participate in the pursuit of profit.
Mutual Fund return for 2017
This article is for those who are planning, planned or have already invested in mutual funds.
Pitfalls and the main disadvantage of investing in mutual funds in Russia.
What is interesting about mutual funds
First, let's look at (remember) - what is it? And how will it be useful for you and me?
A mutual fund can be considered as a common pot for all investors. Money is collected and used to buy various assets (stocks, bonds) in a certain proportion. Each investor or shareholder has a certain share or share. Proportional to the invested funds.
Pros of Pifos:
- simplicity;
- availability;
- wide diversification.
In simple words, to invest in mutual funds you need to enter into an agreement with a management company (MC) and deposit money. That's all.
The cost of one share is only a few thousand rubles. Anyone can become an owner (or co-owner) of the fund and receive a return in proportion to the funds contributed.
By buying one share for 2-5 thousand rubles, you invest money in dozens or even hundreds of different companies. And not only in Russia, but all over the world. Do you want America, please? Germany, China, England or Japan. No problem.
Sounds tempting. If you want to invest in most developed economies at the same time, it’s easy. True, this requires a little more money. But several tens of thousands can easily be met.
You can, of course, do all this yourself. Anyone can enter into an agreement with a broker and companies of interest.
But this requires a lot of money. So much money. Additionally, spending more than one hour (or even several days) of your time.
Mutual funds will do everything for you. You bought shares and received a package of the shares you needed. And you don't need to do anything else.
Yield comparison
But don't be fooled by the high returns. Markets are unstable. And today's profits are not guaranteed in the future. But that's not what we're talking about.
Russian investors bought shares for a record amount. Which ones exactly and why?
In 2017, Russian investors entrusted more money to mutual funds than in any previous year. And this despite the fact that the private investment market offers more and more different products, and about a year ago the Ministry of Finance of the Russian Federation began issuing OFZ - people's bonds. Mutual funds withstood the competition and demonstrated strong growth. Does this mean that they have regained the trust of investors? To some extent, yes, but mutual funds still greatly underperform bank deposits and are popular mainly with wealthy clients.
Below are the most profitable mutual funds in 2017 from among open funds (period from 12/30/2016 to 12/29/2017 according to the National League of Managers):
Place | mutual fund | UK | Fund category | Growth |
---|---|---|---|---|
1 | Sberbank – Global Internet | equity funds | 40,93% | |
2 | Alfa CapitalTechnology | Alfa Capital | equity funds | 31,95% |
3 | Raiffeisen-Information Technologies | Raiffeisen Capital | equity funds | 30,35% |
4 | Savings Management - Asia | Savings Management | funds of funds | 30,25% |
5 | VTB - BRIC | VTB Capital Asset Management | equity funds | 27,51% |
6 | OPENING – China | Opening | funds of funds | 25,89% |
7 | April Capital - Shares of commodity companies | April Capital | equity funds | 25,37% |
8 | Discovery – Emerging Markets | Opening | funds of funds | 24,44% |
9 | RGS – World Technologies | Savings Management | funds of funds | 23,51% |
10 | Raiffeisen – Active Management Fund | Raiffeisen Capital | mixed investment funds | 23,30% |
11 | April Capital - Second tier shares | April Capital | equity funds | 22,13% |
12 | Alfa - Capital Brands | Alfa Capital | equity funds | 21,56% |
13 | Sberbank - Emerging Markets | Sberbank Asset Management | funds of funds | 20,34% |
14 | BCS Perspective | Brokercreditservice | mixed investment funds | 19,13% |
15 | Promsvyaz-Shares | PROMSVYAZ | equity funds | 18,65% |
As can be seen from the table, against the backdrop of deposit rates falling lower and lower, the profitability of mutual funds looks much more attractive.
How to simplify the purchase of mutual funds
Changes made to the legislation in 2016 led to positive results: more money began to be invested in mutual funds. One of the key roles in this was played by the Central Bank, which brought the mutual fund market in line with legal norms and common sense. Those categories of funds that were not in demand at all were abolished, and at the same time obligations were introduced to ensure liquid assets. In addition, customer identification has been simplified. Management companies began to use the Unified System of Identification and Authentication (USIA). This system is coordinated with State Services, and the latter, due to its convenience and simplicity, is used by more and more citizens. Now it has become easy not only to open a brokerage account online, but also to purchase fund shares remotely.
The result is a whole bunch of records. In May 2017, management companies managed to attract an unprecedented amount at that time to open mutual funds in a month - over 6 billion rubles. In October, the record was broken, reaching 8.5 billion rubles, but lasted only until December, when 10 billion rubles were invested in mutual funds. The total amount of funds for which investors purchased shares amounted to 73.2 billion rubles. This was five times higher than in 2016.
However, not everything is so optimistic on the mutual fund market. The influx of funds into investment funds did not come from new purchasers of shares, but from wealthy investors. These are people, usually of advanced age, who want to protect their capital from inflation and increase it. In many ways, their purchase of shares in 2017 brought the average account in mutual funds to almost half a million rubles. For comparison, the average deposit in Russia in 2017 was 165 thousand rubles. Unfortunately, the overall level of penetration of collective investments, as well as investment services in general, among Russians remains low.
How to choose a mutual fund in 2018
Mutual funds, like all other investments, do not guarantee future returns, even if they have been consistently recorded in the past. However, there are guidelines that a private investor should pay attention to.
First, the fund's operating time and its historical performance. If a fund, which is not new to the collective investment market, performs with positive results year after year, this is a sign of competent management and a reason to take a closer look at it.
Secondly, choose mutual funds based on your risk profile. For the most conservative investors, bond mutual funds are suitable, for moderate investors - mixed mutual funds, and for those who seek to maximize profits - stock mutual funds. However, the latter are the most volatile, and investors should be prepared for serious drawdowns in the value of shares.
Is it worth buying mutual funds in 2018 and which mutual funds should an investor choose? Read more about the mutual fund market in 2018 in the material from Business Petersburg
Management companies attracted 73.7 billion rubles into mutual funds in 2017. The half-forgotten instrument was brought back into popularity by the reduction of deposit rates.
The net asset value (NAV) of open-end mutual investment funds (UIFs) in 2017 increased by an all-time record value of 73.7 billion rubles, according to data from the investment resource Investfunds. As a result, the NAV of open mutual funds increased by more than one and a half times, to 216 billion rubles.
For comparison: in 2016, according to Investfunds, open mutual funds attracted 5 times less, 14.7 billion rubles. But this amount was 3.5 times higher than the result of 2015 and turned out to be a record for 10 years.
Alluring debts
The entire influx of money from shareholders was provided, in fact, by one type of fund - bond funds. They attracted 74 billion rubles, the inflow of funds into other types of funds was on average negative.
Debt securities, as a rule, exceed bank deposits in terms of profitability and at the same time differ from shares in greater stability of quotations. They serve as a natural choice for savers looking for an alternative to bank deposits. Over the past year, deposit rates in Russian banks have fallen by more than 1% per annum.
According to the Bank of Russia, in the third decade of December last year, the average maximum rate on deposits in rubles at 10 banks attracting the largest volume of deposits from individuals was 7.33% per annum, while in the same period in 2016 it was 8.4%. Nevertheless, the volume of citizens’ deposits in banks is close to 25 trillion rubles and does not yet show signs of decline. That is, only a small part of depositors are looking for an alternative to deposits; their departure only slows down the growth of the volume of deposits, but does not cause it to decline.
“Bond funds have been leaders in attracting funds over the past 2 years, and 2017 only strengthened this trend,” notes Konstantin Kirpichev, head of sales and marketing at Raiffeisen Capital Management Company. “The main reason for the high demand for them is the flow of investors’ funds from deposits in mutual funds. Bond funds traditionally demonstrate conservative dynamics, while showing returns above deposit rates."
Since the Russian stock market showed weakness last year - the Moscow Exchange index fell by 5.5% - stock funds on average lagged behind bond mutual funds in terms of return. According to Investfunds, the average increase in the value of a unit of 58 bond mutual funds with a NAV above 10 million rubles over the past year was 7.02%. And for all 247 open mutual funds with assets more than 10 million rubles - 5.73%.
The influx of money will continue
Industry-specific equity mutual funds traditionally ranked among the leaders in terms of profitability over the past year (see table). But, according to experts interviewed by DP, this circumstance is unlikely to lead to a sharp increase in the flow of money into these funds. Most likely, the leaders in attracting funds from shareholders, as last year, in 2018 will again be bond funds.
“In 2018, bond funds will most likely remain among the favorites, since client preferences are inert,” believes Vasily Illarionov, head of the business development department, managing director of Sberbank Asset Management. “But if the Central Bank this year, as it promises, will allow management companies to purchase shares of their mutual funds into trust management accounts (IIS and ordinary), then we will be able to offer clients not to choose individual mutual funds themselves, but to create for them a full-fledged personal financial plan with a diversified portfolio of funds. Then the structure of inflows will be more multidirectional and will reflect real balance between financial goals and the risk profile of clients. It is worth noting that the share of inflows into equity funds should increase slightly, because the potential of the equity market is greatly underestimated now. We already began to see this trend at the end of last year, but still the vast majority of new investors are still conservative and prefer bond funds."
“Our mutual funds are among the leaders in the volume of raising funds in 2017,” states Evgeniy Zhornist, portfolio manager at Alfa Capital Management Company. “For example, the value of the net assets of the ruble bond fund “Bonds Plus” increased more than 5 times over year. There are several reasons for such significant volumes of attraction. The main one is low deposit rates. Clients do not want to place money in deposits at a low rate and are looking for alternative placement options. And the bond market offers an acceptable and attractive investment option for such investors.
We believe that the main trends will continue - investors in search of profitability will transfer money from expiring deposits to mutual funds. The ruble debt market, in our opinion, will be on their side and, just as in 2016, will show an increase in bond prices in 2017. We expect the Bank of Russia to continue the cycle of easing monetary policy and believe that the key rate for the year may be reduced to 6.5-6.75% per annum from the current 7.75%. Deposit rates, which are already at a fairly low level, will continue to decline as the key rate decreases. At the end of the year, we expect to earn 9-11% for shareholders of our ruble bond funds."
The fundamental difference between the situation in 2016-2017 is that money from truly conservative investors began to flow into mutual funds, making a conscious choice in favor of bonds. They are much less likely to be disappointed than they were in 2008, after 80% of all investments went into aggressive equity funds in previous years. Accordingly, the main risk of 2018 is macroeconomic: rising inflation, rising rates, and a rising dollar may cause disappointment among investors.