text: Alexandra Suslina
A pandemic crisis is raging around, the general uncertainty is extremely high, and an increasing number of people are wondering how to preserve or even increase their savings in this turbulent time. More and more people are asked about what to invest in and whether to invest at all. It is clear that the answers will depend on many nuances - from the scale of the amount and the level of a person's income to his plans, the presence of long-term goals, obligations and personal risks.
To begin with, a warning - a person who has a regular income, a liquid safety cushion in case of force majeure and a certain accumulated amount of free money that he is ready to "put into business" can think about investments, albeit small ones. Banal low-income risk-free bank deposits are not of interest to him, and the accumulated amount is not large enough to invest in residential or commercial real estate and then receive rental income. What options does such a person have?
First of all, it comes to mind stock market.
If you do not have financial education, then first of all you need to learn the basics and understand what securities are in general and in what ways you can make money on them. It is better to approach this enlightenment process with full responsibility.
In short, the stock market exists because companies always need additional resources for development, that is, investors and their money. To attract investors, the company enters the market and places its securities there. For example, stocks. This process is called emission. As a result, the company receives money, and the investor is entitled to a share of the company's profits. I.e stock is, in fact, a share in the company that it gives to the investor in exchange for his money.
In addition to stocks, there are other securities on the market. When a company needs additional funds, but is not ready to share its profits with investors, it issues bonds… That is, bonds are debt obligations. And the investor receives back the amount paid for them with interest within the agreed period. Bonds are issued not only by companies, but also by the state when it becomes necessary, say, to finance the budget deficit. Government bonds, as a rule, are the least risky and therefore well suited for quiet investments.
In addition, there are also derivative financial instruments: futures (contracts for the supply of goods in future, but on the current price), options (obligations to buy / sell an asset at a specified time at a certain price) and others. But for a novice investor, they are unlikely to be useful.
You also need to know that the securities market is divided into primary and secondary. On the primary market, securities are bought for the first time, that is, only after the issue, and on the secondary market, securities are repeatedly resold. In other words, the value of a purchased share is not a constant value - it will change during trading depending on the efficiency and profitability of the company, market conditions, as well as the political situation, various news, rumors, and other things.
There are several ways to make money on promotions:
hide and store - an option for long-term investments. Buy now shares of a company in a sector that will definitely develop in the future, and in 20-30 years to sell shares at a much higher price. How those who bought Apple shares in the 1980s and can now sell them for more than 200 times their original price
receive dividends (if the company is profitable)
trade on the stock exchange - that is, constantly monitor the capitalization of companies and play in the market, selling and buying certain assets.
For a private person, access to financial markets in Russia is closed.To become an investor, you need to contact official financial intermediaries - brokers or banks with a brokerage license. You can check the availability of a license on the Bank of Russia website.
Then the potential investor must determine for himself how he will make decisions about buying / selling shares and about the structure of his investment portfolio: independently or completely trust the broker. Personal decision making (through a formal brokerage account) will require professional skills, and trust management does not require brokerage skills.
It is clear that most of the novice investors prefer “trust management”, and the most difficult thing here is choosing a broker. After all, it depends on him whether you earn or lose. The broker rating can be viewed on the Moscow Exchange website.
Another opportunity to engage in investments is the opening of an individual investment account (IIA). This can also be done through an official intermediary with a brokerage license. You can manage such an account yourself. It differs from a regular ruble brokerage account by a fixed maximum down payment (no more than one million rubles) and a number of income tax benefits (subject to certain conditions).
At the same time, I would like to note that any intermediaries, and especially banks that are actively promoting the opening of IMS on their platforms, do not help the investor unselfishly. Carefully read the list of commissions that the intermediary takes for maintaining an account and conducting transactions. They can be quite significant.
Another form of investment that banks offer us is Mutual funds, mutual funds. The principle of operation of mutual funds can be briefly described as follows: you, along with other shareholders, become a co-owner of an investment fund managed by a certain company. The task of this company is to manage this fund effectively so that its value grows, and at the same time the value of your share grows.
There are no entry restrictions - you can invest at least a thousand rubles. The pitfalls are that it is impossible to get money back from the mutual fund. You can only resell your share. And since the desire to get rid of a mutual fund usually arises when it ceases to generate income (that is, the assets in which the fund is invested become cheaper), then there are hardly any people willing to buy this share at a price that is acceptable to you. And given that the management company receives a huge commission for its work even when the value of assets falls, and takes additional fees "for entry" and "exit", it becomes so unprofitable to sell that it is easier to leave. So, a novice investor needs to get into mutual funds very carefully and only into those in the long-term growth of which he is sure.
The most traditional type of savings is buying gold… This option is usually chosen by the most conservative investors. Indeed, gold will remain gold in a hundred years. True, we are not talking about jewelry, but about ingots or investment coins. It is possible to buy them for an individual in large banks. At the same time, you do not need to keep gold bars at home - firstly, it is not safe, and secondly, if necessary, it will be difficult to sell them. To make the possession of gold reserves more modern, the mechanism of impersonal metal accounts was invented. A personal account is opened in the name of the buyer, indicating the volume of purchased gold in grams. This allows not only to ensure high liquidity of gold, but also protects it from mechanical damage and allows you to save a lot on VAT payments. The main thing is to choose a reliable bank in which you will store your gold reserves.
If you want to make money selling gold, then it has been noticed that it is better to buy it in a quiet time, when prices are slightly decreasing, and to sell in a crisis, when the demand for gold rises and the price rises.
In conclusion, I will add - if you want not only to make money, but also to give impetus to the development of the domestic economy, then as a possible direction of investment, you can consider investing in real business projects, startups or small businesses. There are many people who want to start their own business, but do not have the initial capital. For them, an investor who is ready to invest at the stage of formation would be very helpful. It is not necessary to lend - you can, for example, get a share in a business. And if everything works out, then such an investment will become a good source of passive income in the future.
But no matter which path a novice investor chooses, he should not forget the following:
An investment is always a risk of loss. We must be mentally prepared for this.
There is no easy money. If a very high income is promised for an asset, this is a signal that this asset is high-risk or an obvious fraud. Financial pyramids can hide in the most unexpected places.
All eggs are in different baskets. The more diversified the investment portfolio, the safer in general: losses on some assets will be offset by profits on others.
Investments are always a long-term history. It is impossible to quickly get your money out of an investment or brokerage account. Or perhaps, but with a fine.
Knowledge is power. Making money in the stock market is not easy. It is important to know not only the theory and not be lazy to delve into the essence of the matter, but also to follow the news, economics and politics.
PHOTOS: Tinnakorn - stock.adobe.com, Chirawan - stock.adobe.com