Where to invest money for a novice investor
All over the world, private investment is experiencing a real boom.
Last year and the beginning of this year were marked by a rapid increase in the number of private investors.
This trend has not spared Russia either – 8.8 million new investors in 2020 and more than 15 million in January 2021 alone, according to the Moscow Exchange.
But the desire to invest is not enough. To get real income and minimize risks, you need to invest money wisely.
Experts from the Vyberu.ru have collected tips for novice investors.
Mutual investment fund
Mutual funds are formed from shares purchased by shareholders. The entire process is organized by the management company. You can start investing with a relatively small amount - about 1-3 thousand rubles, while all activities are transparent and controlled by the state.
Disadvantages for the shareholder:
- the risk is higher than when placing money on deposits or when buying bonds;
- you need to pay commissions even if no profit is made.
Depending on the type of mutual fund, there may be restrictions on the sale or exchange of shares. To choose a good fund, you need to have at least a minimum of knowledge in this area.
Bank deposit
One of the best options for novice investors – deposit programs are simple and transparent, and easy to understand. To make money on deposits, you need:
- have an impressive starting amount;
- choose long-term deposits, and for those programs that do not provide for partial withdrawal or replenishment, the interest rate is usually higher.
The disadvantages of this method are low, albeit stable profits. The average rate on bank ruble deposits is about 5%, on dollar and euro deposits – 1% or lower.
Bonds and shares
In terms of profit, shares are the most promising, but their risk is many times higher. They allow the investor to receive passive income in the form of dividends. There is practically no ceiling on profitability. But you can trade on the stock exchange only after you have accumulated enough experience. And money is practically not insured, so you can lose everything and remain in the red.
Bonds are more stable, less risky, but also less profitable. For example, OFZ (federal loan bonds issued by the Ministry of Finance of the Russian Federation) will bring a guaranteed, but relatively low income to the investor. This is one of the safest types of investments with high liquidity.
Currency market
Foreign currency is one of the instruments that allows you not only to save money, but also to make a profit. You can invest it in several ways:
- Buying/selling cash. Not the most profitable, but at the same time risky way - keeping a large amount of cash on you is dangerous. In addition, foreign currency, like the Russian ruble, is subject to inflation.
- Eurobonds. The yield here is higher than, for example, on bank deposits. They are produced by large companies or the state, so reliability is at a high level. The main risk is interest rate fluctuations. You will have to pay a tax of 13% on profits.
Currencies can be traded on the stock exchange, although this is not investing in the usual sense of the word. Moreover, it is not necessary to buy and sell it - you can make money on the fall or rise in rates when concluding transactions. Individuals, including beginners, can also participate in trading.
Individual investment account
IIS is an individual account that can be opened with a broker. The latter gives the client access to the exchange, and with its help they can invest. Today, processes are almost completely automated - most operations can be performed from home online (on a PC or smartphone).
You cannot withdraw money from an individual investment account for 3 years after opening, but it can be replenished. The minimum amount is from 400 thousand rubles, a tax deduction is also provided.
Having an IIS, you can buy stocks, bonds or funds. After gaining some experience, you can try options, futures and other, more complex investment instruments.
The main disadvantage of this method of investing money is that you need to understand it, and not mindlessly buy and sell. But today brokers have simplified the task for investors by releasing special applications and programs.
Finally, some advice for a novice investor - invest only your own savings, not borrowed money, divide the available amount into several assets, at least understand the market features to a minimum and do not make hasty decisions.