Money is like a living organism. If they do not show activity, they will not work, they will wither, weaken, grind. In other words, if money is not invested, then sooner or later inflation will eat it.
A financially literate person knows that free money should not be dead weight. Otherwise, they will gradually depreciate (usually, the longer the money is, the more it will lose in value). In other words, in a year less goods and services can be bought for the same amount.
Therefore, it is better to keep honestly earned money not at home (especially if it is an impressive amount), but in various financial instruments that will not only save your capital, but even bring a certain income.
Bank deposits
Perhaps the simplest and most accessible (including for understanding) type of deposits. To open a deposit, you do not need to have deep knowledge in the field of economics and finance, you just need to come to a bank (fortunately, nowadays there are bank branches even in small towns), draw up an agreement and deposit money into a savings account.
Usually, different banks have significantly different deposit conditions, and each of them has several types of deposits so that the client can choose the most suitable one. It is better if the interest on the deposit is not lower than the refinancing rate (you can also check it at the bank branch), then the client's money will at least be saved. Usually banks offer from 6% to 11% per annum, while the longer the term of the deposit, the greater the interest rate on it.
Clients can open deposits in rubles, dollars and / or euros. Some banks also have the ability to open metal deposits (silver, gold, platinum); in this case, the owner of the account receives a profit from the increase in prices for precious metals, but it is not guaranteed, because prices for metals may go down.
It is recommended to make deposits with several well-known banks. After all, no bank is immune from bankruptcy, but banks do not go bankrupt all at once, and first of all the smallest ones do it. For even greater safety of deposits, you should use the services of banks that participate in the state deposit insurance system, which allows, in case of problems with a financial institution, to return to the client the amount of his deposit up to 700,000 rubles (in one bank).
The advantages of the method include guaranteed profitability, ease of use and availability (you can find types of deposit accounts from 1000 rubles).
The disadvantages are low profitability (which, however, is enough to save the money earned) and a small percentage in case of early termination of the contract (in case the client urgently needs money).
The property
If you have a large enough amount of money, then you can buy real estate, rent it out and then consistently receive passive income. If you own real estate not in a small crisis town, then it is likely to add in price from year to year. And after a while, you can also sell your property profitably.
Advantages of the method: stable regular income and investment reliability.
Cons: large threshold for entry.
Mutual investment fund (UIF)
Investors voluntarily invest in mutual funds in order to make a profit. The mutual fund is managed by a management company that invests money in various stock instruments (stocks, bonds, etc.). For their money, the shareholders receive shares, and if the money of the mutual fund is invested efficiently, then the value of each share increases.
The management company receives remuneration in the amount of several percent per year from the contribution of each shareholder. The profitability of mutual funds is not guaranteed, and the high profitability of mutual funds in the past does not at all ensure its high profitability in the future.
There are mutual funds:
- open ones, the client of which can exchange his shares for money on any working day.
- interval, in which the share can be repaid only at certain intervals.
- closed, you can exchange your share for money only after the end of the mutual fund's activities.
Advantages of the method: the minimum initial contribution is several thousand, the depositor does not require special financial knowledge, as well as management of their assets, you can choose a mutual fund with a suitable risk / return ratio, there is an opportunity to get a high income.
Disadvantages of the method: risky investments, moreover, you cannot influence where exactly the management company invests your money.
A type of mutual fund can be considered a general bank management fund (OFBU) - this is the same fund as a mutual fund, only it is not managed by the management company, but by the bank.
Foreign exchange market (forex)
Forex activity is not an investment or even a business, contrary to the opinion of many foreign exchange traders. It would be more correct to call it speculation (bought cheaper, sold more expensive).
The main advantage of playing in the foreign exchange market is the huge potential profitability, which is usually achieved with the help of large leverage. The yield can reach hundreds of percent per annum. However, in practice, it is very difficult to get something like this. After all, thanks to the same leverage, it is also very easy to lose all the money invested due to the unexpectedly reversed course.
This area is favorable only to professionals with good economic and financial knowledge, in addition to everything else, very stable emotionally. Although, thanks to the marketing tricks of numerous forex centers, it is widely believed among the population that it is very easy to make money through currency trading. That is why crowds of newcomers come to Forex, lose their money (more precisely, give it to dealing centers that ensure their entry into the foreign exchange market) and never return to it after the first major defeat.
The fact that forex in Russia is not controlled by laws in any way does not play into the hands of beginners, therefore, if problems arise, there will most likely be no one to seek protection of their rights.
It is also noteworthy that many offices offer participation in auctions with very small amounts (from 300 rubles). A client will not be allowed to enter the real foreign exchange market with such a ridiculous amount of money - transactions are concluded there in the amount of at least hundreds of thousands of dollars. This means that if you invest even a few tens of thousands of rubles in a deal, then in fact this money does not go to the real market. Your funds do not even leave the forex office where you brought them. Clients of the forex office conclude all transactions with other clients. For this, sometimes forex offices are called "kitchens". Therefore, if you still want to try yourself in the foreign exchange market, you will need either a lot of money, or very large and well-known forex offices, in which many clients trade with each other.
Advantages of the method: the ability to make a profit of hundreds of percent per annum, a very small amount of investment.
Disadvantages of the method: there is a high probability of losing the money invested, especially for a non-professional in a field that, moreover, is not controlled by the laws of the Russian Federation.
Stock market (shares)
Investing in shares of domestic and foreign companies is one of the most profitable types of investments, however, it is also one of the most risky ones. The risk is that the share price changes unfavorable for the holder. The client buys shares, believing that their price will increase in the future, and he will be able to sell these shares at a higher price. However, stock prices in the stock market are subject to daily fluctuations, they can not only rise, but also fall.
Unlike the foreign exchange market, the stock market (where transactions with shares are made) is regulated by the legislation of the Russian Federation. However, in order to buy and sell shares on your own, you also need to have special knowledge to make accurate forecasts of securities prices.
Usually, the minimum amount you need to deposit to your account to start trading is 10,000 rubles; however, some Russian brokers (Alfa Bank, KIT Finance) do not have such restrictions.
Advantages of the method: the ability to make a profit of tens or hundreds of percent per annum, the ability to independently choose from a large number of shares, as well as develop investment strategies from short-term speculative to long-term.
Disadvantages of the method: you need to have special knowledge in the field of finance, economics, investment management and follow the market.
