Should I invest? Where to invest money to make it work

Hello, dear readers!

Many people want and are ready to invest. But some of us are stopped by the lack of significant capital. Fortunately, small amounts can be successfully invested. This is exactly what today's article will be about. So, read on and find out where to invest a little money to make money.

I will say right away that there are indeed restrictions on the minimum investment size in many investment companies and projects. If we talk about large European brokers, the entry threshold, as a rule, starts at $10,000 or even more.

Why is this being done? Large companies simply do not want to waste time on servicing and supporting clients who bring in little income. In general, the usual Western prudence is manifested.

At one time, I encountered this myself. However, there were investment options. And over time, it became absolutely clear that even with a small amount you can start making good money from investments.

Trust management technologies

Secondly, never, under any circumstances, trade forex or binary options on your own. Barkers lure you with easy money. In fact, it is always a one-way ticket to losses. There are sad statistics: beginners lose on Forex in 99.7% of cases.

At the same time, there is a slightly smarter way to make money. You can invest in experienced managers who have proven themselves over time and are included in this 0.3% of successful traders. In essence, this is the same thing that is offered by the large European brokers mentioned at the top of the article.

Modern technologies for investing in Forex through managers are called PAMM and MAM. The adequate return on these instruments lies in the range of 20-100% per year.

PAMM accounts especially common in RuNet. Competition in the industry is fueling the fight for customers. As a result, there is now a large selection of successful managers and a number of convenient services for monitoring your investments. At the same time, the minimum amount for cooperation with one or another trader starts from $10-$100.

Projects

Also, I would note highly profitable projects. They are also called hypes. This is quite a risky tool.
Typically, the risk is covered by generous returns. Profits can amount to tens of percent, and not per year, but per month. The least risky tactic is to invest in a particular project for a period of one or two months, and then withdraw funds.

In conclusion, I note the need for comprehensive. Try to combine different tools. And then the risk will decrease, and the potential profitability will remain the same.

I would be grateful for your questions/opinions on where to invest a little money to earn money in comments.

I wish you all profitable investments!

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You go to work every morning, day after day, year after year. And your whole life is more like Groundhog Day. Every day is similar to the previous one. You safely spend all your income received at work on life. The result is a vicious circle. What's next? - you think. Something needs to be changed in this life. One way to break the current situation is to invest.

After all, what is investing?

Investment is investing money today in order to receive it tomorrow, but in larger quantities. Or receiving permanent passive income from funds once invested.

Of course, you won’t be able to find a large amount right away. Most investors start with very modest amounts that they manage to save from their salaries. The main thing here is consistency and time. Taken together with these parameters, any, even insignificant, capital can grow into a fairly decent amount, allowing its owner to receive a very good income that will exceed your current income. Please note that this will be completely passive income, generated with virtually no participation from you.

Beginning investors face many questions, the main one being where to invest. Especially if we are talking about a very small amount of money. It is the limitation on the volume of invested funds that makes its adjustments to possible investments. But nevertheless, even with little money, there are many ways to earn and increase your hard-earned money.

6 ways to invest money for a beginner

Investing in bank deposits

Bank deposits or deposits are the simplest and most reliable type of investment. When you open a bank deposit, you will know in advance. what income you will receive at the end of the term. And most importantly, GUARANTEED INCOME. Deposits are practically the only financial instrument for which the profitability is known in advance. Other investments do not carry such a guarantee. In them you can both earn and lose. Also, do not forget that the safety of deposits is guaranteed by the state (in the amount of 1.4 million rubles). If the amount exceeds this threshold, then it is better to open several deposits in different banks.

Bank deposits are used mainly as a means of initial capital accumulation. When a certain level of funds in the account is reached, other investment opportunities become available to the investor. Why? The answer is quite simple - very low profitability. Typically, deposit rates are within the inflation rate. Therefore, it is unlikely that you will get rich by investing in deposits.

Currency deposits

In the context of a difficult economic situation in the country, foreign currency deposits again began to gain popularity. The ruble is rapidly losing its position compared to other financial payment systems. And in order to somehow preserve their savings, deposits in foreign currency are used. And although the yield on such deposits is quite modest, around 2-5% per annum, real earnings can exceed the current yield several times. Due to the weakening of the ruble and, accordingly, the strengthening of the currency.

It was foreign currency deposits that were the most profitable over the past 5 years among the main types of investments. Those who opened similar deposits several years ago have already earned more than 230% profit. For comparison, simple ruble deposits for the same period showed a return of 83%.

Investments in mutual funds

• possibility of investing small amounts
• tax exemption
• no need to store at home, exposing the risk of theft
• can be bought and sold in parts, if necessary

Other possible ways of investing in gold (buying bars, gold coins) have exactly the same disadvantages that are the advantages of compulsory medical insurance.

Greetings! Last year cannot be called boring and predictable: neither for Russia nor for global financial markets.

For the first time in 20 years, the budgets of the oil monarchies of the Persian Gulf have become deficit. The UK left the EU, and the British pound fell to 1985 levels within a month. In December, the US Federal Reserve raised its base rate to 0.5-0.75%. The euro fell to almost parity with the dollar.

Russia agreed to reduce oil production by 300 thousand barrels per day. The Central Bank revoked the licenses of 95 banks. But the ruble strengthened against the dollar by 16%, and the level decreased by half.

What's next? How to preserve capital in a situation of high uncertainty? What to invest in in 2018-2019? For convenience, I divided the instruments by goals: not to lose, to make money on the growth of an asset and/or and to receive income in foreign currency.

Here I included tools with almost 100% reliability. “Almost” - because . All three assets only partially compensate for losses from inflation!

Bank deposits

If your investment horizon is too short for risky assets, you don't have much choice. You will also have to abandon your ideas, so the only thing left for you is banal bank deposits. If you need to try to save your capital primarily from yourself, your loved one, then it is better to open time deposits, without the right to replenish and withdraw (for example, the “Save” product from Sberbank). Such deposits always offer the maximum interest rate. And they are prohibited from withdrawing part of the deposit until it is closed.

The main thing is not to forget about the “limiter” in the form of 1.4 million rubles in one bank. This is exactly how much (and not a penny more) the Deposit Insurance Agency will return in the event of bank bankruptcy.

Reliable bonds

If you have a slightly longer horizon and a slightly higher financial IQ, you will probably be interested in these debt securities. Judge for yourself: the risks of bankruptcy of the state are much lower than the risks of bankruptcy of any one bank, even a large one. Plus, bond yields are almost always higher than bank deposits.

By the way, are you aware that with the money that you leave as a deposit, the bank almost immediately buys bonds and thereby earns the difference in interest without risking anything?

Federal loan bonds are considered the most reliable. Their repayment is guaranteed by the government of the Russian Federation. But it is better to form a bond portfolio from. Fortunately, the symbolic cost of the bond (only 1000 rubles) allows this.

You can only advise something specific if you know your specific investment plan, so below I will give a couple of papers that I think are interesting.

For example, OFZ-PK are bonds with a variable coupon. The coupon size is tied to the average RUONIA rate and is revised from time to time. OFZ-PD fixes the coupon size at a constant level (for example, 6-7% per annum) until maturity.

But I think the most interesting option in 2018 is . The face value of such bonds is constantly indexed to the inflation rate (calculated using the consumer price index for each day with a lag of three months). For OFZ-IN, the coupon is 2.5% per annum above inflation (CPI).

Gold

Stock

Unlike bonds, stocks are instruments with potentially high returns. Experts believe that in 2018 the MICEX index will further increase, the Central Bank will continue to lower the key rate, and oil will rise in price. Against this background, many Russian “giants” have good growth potential.

To make a profit in the future, today you can invest in securities of exporting companies: ALROSA (excellent company performance over the past year), Protek, NLMK (Rosneft is not on the list of recommended companies). Analysts advise paying attention to the shares of LUKOIL and Sberbank, which were undervalued last year (even though it grew very strongly, its p\e is still low).

Some are betting on the rise of electricity companies that have floundered in the past year. The shares of Rosseti and IDGC of the South are of particular interest.

The main idea and advice is to pay attention to companies with growth prospects and.

For example:

• Phosagro (the share price may rise to 3,350 rubles, dividend yield over the last two years amounted to 6.08% per annum)
• "Rusagro" (price is expected to increase to 1,200 rubles)
• Norilsk Nickel (possible rise in price to 12,300 rubles per share, dividends over the past two years amounted to 14.09% per annum)

Abroad, the high-tech sector looks more promising than others: Facebook, Alphabet, BYD Company, Google, Amazon, Netflix, NVIDIA and others.

Own business

Owning your own business is a profitable but very risky option. Initial capital is needed from the first day, and the return on investment can be obtained, at best, in six months to a year. Or not get it at all...

To avoid risking large amounts of money, start with an online project. Firstly, a lot of problems like renting an office, warehouse and logistics disappear. Secondly, the starting amounts here are much more modest than for opening your own.

To receive passive income

Real estate

Real estate generates passive income only when “square meters” are rented out. But you shouldn’t count on millions in profits from renting out ordinary residential premises.

I provide data for 2016 from the SRG analytical center. The average return on residential real estate in St. Petersburg is 7.7% per year (return on investment is 14 years). In Moscow, the average yield is lower: 5.8% per annum with a payback period of 17 years.

Real estate abroad brings even less - up to 5-6% per annum. In some cases, it is better to delegate the decision of all organizational issues to a professional management company. She will look for tenants, resolve issues with ongoing repairs and payments, etc. For this she will have to “donate” 15-20% of the rental price. But - real passive income!

On the other hand, if you have an apartment for rent, you can try rent it out daily(mainly to foreigners) and thereby increase profitability to 10-12% per annum with good occupancy.

To receive income in foreign currency

Of course, to receive income in foreign currency, you can simply buy shares or. This way you will partially eliminate the risk of being left with nothing if the ruble collapses again. But there are other ways.

Eurobonds

Eurobonds boast all the advantages of ruble bonds. Plus they have additional protection against currency risks. After all, that’s why they are “euro”, because they are denominated in foreign currencies: dollars, euros, Swiss francs and British pounds sterling.

Today, Eurobonds of such companies as AHML, Alfa-Bank, VTB Bank, Gazprom, LUKOIL, MTS, NLMK, Novatek, Russian Railways, Rosneft, Sberbank, PhosAgro and Uralkali are presented on the Moscow Exchange.

The average yield on Eurobonds is 3-6% per annum (paid twice a year). The minimum denomination of a security starts at $1000. The main problem with such securities is liquidity. But more about this some other time.

Unit-linked programs

I have already discussed unit-linked programs. Let me remind you: a foreign product combines savings, life insurance and investments. Moreover, you can invest in a bunch of foreign instruments that are not available to private investors from Russia. For example, in the same mutual funds, where entry thresholds through a broker often start at $50,000.

By the way, since 2013, the Moscow Exchange has been successfully trading, which covers a fairly large part of the markets previously available only through foreign brokers.

For some of them, the average annual return from mid-2014 to mid-2016 (in ruble terms) was about 50%. For example, FinEx MSCI USA Information Technology UCITS ETF (shares of the US IT sector) grew by 49.8% per year.

But foreign currency deposits today bring mere pennies (up to 2% per annum). And no one is considered as a serious investment tool anymore.

In this article I have presented only some of the tools available to the average investor from Russia. Remember that only by collecting these kinds of assets can you be sure of achieving the challenges you face!

What assets do you plan to invest in in 2018-2019? Subscribe to updates and share links to fresh posts with your friends on social networks!

Content

Any conscientious citizen wants to have a stable passive income. One way to achieve this goal is to invest money in profitable commercial projects and make a small profit. Free financial resources can be used to develop a business, purchase real estate, participate in mutual funds, or open a depository account.

What is investing money

Each participant in the economic system must strive to increase their own capital. Investing money in different projects to achieve this goal is called investing. Investments and loans differ in the degree of risk. They generate income only in profitable projects, and the lender receives interest regardless of the financial condition of the borrower. The following investment instruments are distinguished:

• bank deposits;
• insurance or pension savings programs;
• shares of exchange-traded funds;
• real estate;
• mutual investment funds (UIF);
• structured banking products;
• precious metals (gold, platinum, silver, etc.);
• hedge funds;
• alternative (art objects, precious stones, jewelry, etc.).

What amounts can you start with?

Methods of earning money directly depend on how much capital a potential investor has. To participate in large investment projects, a citizen must have a minimum of $2,000. People planning to start their own business should have similar capital. A deposit can be a tool for passive income at the initial stage of investment. Some banks allow deposits from 1000 rubles.

How to invest money correctly

A citizen must decide how much money he is willing to spend to organize passive income. With minimal risks, you can make a profit only from bank deposits. Over the course of a year, 10-12% will be added to the amount existing on the account. When using other investment instruments, the risks increase. Citizens who do not take this factor into account often lose their own savings.

Business plan

A citizen needs to draw up capital distribution schemes if he is considering several investment options. Large investors do not advise distributing finances between several economic spheres at the initial stages, because there is a high probability of losing all your savings. First you need to identify reliable financial partners and then invest the money. The business plan must include:

• the amount of capital that a citizen is willing to spend for investments;
• the amount of desired profit;
• investment instruments that will be used to achieve the set goals;
• calculation of possible losses.

Free money

This term refers to cash that the investor can use for investment. They are not subject to interest and are not used to pay utility bills or fulfill other financial obligations. You can invest your free money anywhere. Borrowed funds used for deposits do not fall into this category of assets.

Regular profitability

This indicator refers to the amount of funds that a citizen receives over a certain period of time. Profits received from investments are not included in this amount. The regular profitability indicator must be divided into 2 parts. One share of the funds received will be used to ensure personal subsistence, and the second will be used in the constant increase of capital.

Reinvestment of profits

All investors regularly redistribute their capital. This procedure is called reinvestment. A competent approach to the redistribution of assets will help not only maintain existing profit indicators, but also increase the size of your own savings. This procedure is used in some banks, where interest is added to the open deposit every month. Only large investors receive daily dividends. Other individuals are recommended to reinvest profits once every 2-3 months.

Where to invest money to make it work

Free funds should not be kept at home without any purpose. Exchange rates are constantly changing, which leads to a gradual depreciation of money. You can save assets if you invest them in commercial projects. It is advisable to distribute funds across several sectors. For example, if mutual funds lose, then the profit received from selling shares on the stock exchange can compensate for the losses. The most popular financial instruments for increasing capital:

• bank deposits;
• real estate;
• mutual funds;
• currency markets and securities exchanges.

Bank deposits

Many people are afraid to invest money in dubious commercial projects, so they open depository accounts. The main disadvantage of this method of increasing capital is the low interest on deposits. With a bank deposit, a citizen can earn only 10-12% of the initial amount. This way of earning money is completely safe, because... all deposits are insured by the state. The top 5 reliable banks offering the most favorable conditions for opening deposits are as follows:

1. Credit Bank of Moscow. Clients of the institution can open a depository account at a high interest rate of 9% per annum. The minimum deposit amount is 1000 rubles. Money with interest is withdrawn only at the end of the term. If the deposit is withdrawn early, the profit will be reset to zero.
2. National Bank "Trust". The annual rate on deposits in this institution is 10% per annum. The deposit amount cannot be less than 50,000 rubles.
3. Citibank. Clients of the institution who use complex investment or insurance products can open a deposit at 9% per annum. The minimum deposit amount is 30,000 rubles.
4. URALSIB. Especially for people who decide to purchase shares, the institution offers to open a depository account at 9% per annum. The deposit cannot be less than 50,000 rubles.
5. Binbank. Citizens can open a deposit in this bank in the amount of 50,000 rubles at 10% per annum. The money is deposited into the account for 181 days.

Playing on the stock exchange and Forex

When it comes to where to invest money profitably, some people think of buying stocks, bonds and then selling them. Trade securities on stock exchanges. Citizens who have free money can turn to Forex brokers or try to create their own investment portfolio on their own. But first you should study the basic principles of selling assets, otherwise the risk of losing all funds from your PAMM account increases.

Investments in mutual funds

Many financiers, when asked where it is better for an ordinary citizen to invest money, will answer that it is better to become a shareholder in a mutual investment fund or open a depository account in a bank. Sberbank, VTB, URALSIB, Raiffeisen and other credit institutions work closely with mutual funds on the Russian market. An individual can invest small amounts of money in them or purchase shares for a large amount. Top 5 most profitable mutual funds this year:

1. MK promotions from Management Consulting.
2. Raiffeisen - Information technologies from Raiffeisen Capital.
3. URALSIB Energy perspective from URALSIB.
4. VTB – Energy Fund from VTB Capital Asset Management.
5. RSHB - Best industries from RSHB Asset Management.

Investing in real estate

One of the options for long-term investment is the purchase of commercial or residential premises. The value of real estate is increasing every year. Investment is considered profitable at the excavation stage, but it should be taken into account that customers often miss the deadlines for the delivery of residential complexes. Investments in commercial real estate will be profitable if a citizen himself is going to start a business. It is not profitable to invest money in it for further sale.

Own business

Individuals, wondering what they can invest money in, forget about entrepreneurial activity. A real business begins to generate good income after a customer base has been collected. The basis of any profitable business activity is a good idea. If a citizen has developed a detailed plan for increasing his own funds through the production of any unique product or service, then he should invest money in the implementation of these ideas.

Where to invest money at high interest rates

All investors want to get a lot of profit. Bank deposits will not help achieve this goal. Rates on them rarely exceed 10% per annum. Some people start investing all their money in oil or other useful resources, which often causes their finances to depreciate. There are many methods that can generate profit, but at the same time demonstrate high risks. These include:

• buying and selling shares;
• investing in foreign currency;
• purchase of precious metals;
• investing in binary options.

Profitable investments in Internet projects

You can increase your own assets not only with the help of banks and hiring professional investors. The Internet provides enormous opportunities for passive income. The network user can only choose projects in which to invest money. It is better to consult with a successful investor in advance to reduce the risk of capital loss. A citizen can invest a small amount of money in one of the following projects:

• Forex exchange;
• creating your own website or blog;
• participation in HYIPs or online casinos;
• purchasing a website on an exchange;
• participation in a network Internet project;
• opening your own online store;
• to affiliate programs or their sale using contextual advertising;
• binary bets;
• common fund of bank management (FBU) or mutual funds.

What is profitable to invest money in Russia

In the post-Soviet space, among all investment instruments, depository accounts and mutual funds have become very popular. Some citizens may try to learn how to trade on stock exchanges, preferring shares in stable currencies (dollars, pounds sterling, Japanese yen). You can invest any money in real estate. Apartment buildings bring large profits to their owners. To receive money in Russia, you can consider the following investment options:

• bonds;
• private lending;
• investing in websites for CPA (Cost Per Action) affiliate programs;
• venture funds;
• investing in MFA resources (Made For Adsense).

Large amounts

Financiers advise citizens who have large capital to start buying precious stones. Inflation has virtually no effect on this investment instrument, so there is no better way to save money. For the same reason, experts recommend investing in the purchase of gold, platinum and other precious metals. Trust management of financial instruments is a popular way to increase capital. You can transfer your own money to one of the successful traders or to a bank offering similar services.

What to invest small money in

A novice investor can get real profit from depository accounts. Commercial institutions willingly accept deposits from 10,000 rubles. State insurance guarantees the protection of depository accounts from bankruptcy. You can invest money in website development. It is almost impossible to lose invested funds, because... The intelligent product is developed to meet individual customer requirements.

Video

In the last article we looked at. The disadvantage of these types of investments is the rather low return. They are aimed more at preserving capital than at generating a good income. If such returns are not for you, then in this article you will learn more profitable investments that allow you to receive higher profits.

Let me make a reservation right away: we will be talking about potential profitability here. Nobody guarantees you an absolutely stable profit. All investments are subject to certain levels of risk. And perhaps you can even get losses. But if you use several techniques, you can reduce the likelihood of losses and get very good profits, at least significantly higher than, for example, what bank deposits provide. But first things first.

The most profitable investment of money

Profitable investments in the stock market

The stock market allows you to invest money in several directions at once.

Profitable investments in bonds

Investments in bonds allow you to receive income that is slightly ahead of inflation. There are 3 types of bonds:

• OFZ or federal loan bonds
• municipal bonds
• corporate bonds

The most profitable are corporate bonds, municipal bonds are in second place, and OFZs are inferior to them in terms of profitability. In terms of reliability, it’s the other way around; the most reliable are OFZs, etc.

Profitable investments in shares

In our opinion, the most promising investment is. And although buying shares is considered a risky business and quite justifiably, if you invest money for a long period, such risks are reduced significantly, and over especially long periods they generally tend to zero.

The fact is that the market value of shares can vary greatly over the course of even one year: both up and down. Sometimes such movements reach 20-30% in each direction. But we have 3 assistants on our side: time, inflation and business development.

If you buy shares for a long period, then, according to statistics, the price always increases. According to statistics, the Russian stock market is growing by about 18-25% per year. Of course, this is an average, calculated for a period of 10-15 years.

Advice. Take a closer look. In addition to the potential for growth, you will qualify for a portion of the profits in the form of annual dividends. And if the company is developing steadily, then its final profit will also grow, which in turn will have a positive effect on the amount of dividends received.

Profitable investments in mutual funds

By buying mutual funds, you immediately become the owner of a whole package of shares (bonds) selected according to a certain principle. This could be, for example, only dividend shares of companies that pay traditionally high dividends. Or shares belonging to any industry: oil and gas, financial, electric power and others.

Profitable investments in ETFs

An alternative to mutual funds are ETFs. This is the most popular investment method among investors in the world.

For those who don’t know what an ETF is, I’ll briefly explain…. an investment fund buys various securities (for example, shares) in a certain proportion, and uses the purchased assets to issue its own securities, which are also freely traded on the stock exchange.

In Russia, the ETF market is not yet very developed. About 10 different ETFs are traded on the MICEX (http://moex.com/s221)

ETFs have the following advantages:

• reliability. This is also a security that is regulated by financial authorities on a par with stocks, bonds
• low cost within 2-5 thousand rubles. Those. If I have an amount of only 20-30 thousand rubles, I can create an investment portfolio that will include shares of several hundred companies from all the leading countries of the world. Such diversification will reliably protect your investments from unstable economic shocks. When an economic downturn in one country will not greatly affect the health of your portfolio.
• currency diversification - by investing in foreign assets, you protect your investments from ruble devaluation. Here we can draw an analogy with the purchase of currency with additional growth of shares due to development and, accordingly, additional profit.
• By buying an ETF, you invest in several companies at once. Or in the company of other countries. Let's say in the FinEx MSCI China UCITS ETF - for the amount of $30 you will become a shareholder of about 150 of the largest Chinese companies
• high liquidity. ETFs can be sold at any time, without any additional commissions, as is the case with mutual funds.
• low costs - the annual commission ranges from 0.1 to 0.9%, which is several times lower than that of mutual funds. The difference will be especially noticeable over long periods.

The above investment methods can be classified as “classic”. The following investment methods are considered high-risk. When, in addition to trading risks, you may incur so-called and. And as you know, high risks also bring fabulous profits (at least you can count on them).

Highly profitable investments in PAMM accounts.

The essence of the account is that you give your money to the management of traders who make money in the financial markets. Profit is divided in a certain proportion: 50/50, 70/30 or 80/20. Those. You get 80%, the manager takes 20% for the result. If you receive losses, the entire burden falls on your shoulders.

How much can you earn?

Depending on the aggressiveness of PAMM accounts, you can expect 30-100% per annum.

Advice. Choose several reliable accounts that have existed for at least 1 year and show an average annual return of around 30-50%. More aggressive accounts sooner or later “drain” or go into a deep drawdown of 50%. By investing money in several accounts, you protect yourself from losses; if one account goes negative, the profit from others will compensate for this loss and in total you will make a profit.

Investments in HYIPs

This type of investment is high-risk. It's essentially a game on a keg of gunpowder. You can lose all your money in one moment. However, for those who want to significantly increase their capital, this is a quick way to achieve this. capable of bringing 5-10% per month. You can double or even triple your investment in a year.

Advice. Invest a small part of your capital in HYIPs. And always withdraw your profits regularly. Never invest money in hype alone. Choose a few and spread your money over them.

Finally

If you look at the future, it is investing in the stock market that allows you to get stable long-term profits. Investments in PAMM accounts and HYIPs can be considered as temporary short-term investments, also with fairly high levels of risk.

Investments in stocks and bonds can provide you with additional income. We are talking about IIS (). I think an additional 13% in the form of profit will not hurt anyone. Profit is never too much.

Happy investing everyone!!!