How can a Russian investor find a balance between risk and profitability? According to analysts, highly profitable assets are usually connected with high risks. An investor with impressive funds seeks to minimize financial losses. This can be done with the help of low-risk investments.
Bank savings
This investment option is the most common one being the least profitable at the same time. Experts outline three main reasons why bank deposits are so popular in Russia: 1) pre-agreed conditions; 2) the right to withdraw investments at any time; 3) risk minimization. In case of bank failure, the government will refund the deposit unless it exceeds 1 million rubles. This is a perfect investment option for those who would like to save and keep the available funds. However, the rate of inflation in Russia will not allow investors to have significant gains from such a deposit, but just maintain the level of initial investments.
Securities
Purchase of bonds is a rather widespread type of investment in the stock market. Still, even in this case, an investor can face both a steady income and a financial collapse. The difficulty lies in the proper portfolio formation and its management. To reduce the risks, market participants use the service of intermediary banks since successful trade in the stock market is very difficult without a broker. To eliminate financial losses, it is worth diversifying the portfolio by including different types of securities. In this case, an investor can count on a stable income.
Real estate
This kind of investment is considered to be the most popular and reliable one. Residential or commercial property can be a good source of a stable passive income to the owner. This method is suitable for protecting your money from inflation during times of economic instability. Many people buy apartments under construction and sell them upon completion. Buying an apartment with the aim to rent it provides you with a long-term steady income. Investment in real estate is beneficial because of the safety of invested funds and elimination of inflation risks.
Individual investment account (IIA)
This type of a brokerage account provides tax benefits. This investment project is supported by the Russian government. IIA is a perfect opportunity to gain profit in the bond market. This type of investment is suitable only for the tax residents of the Russian Federation. The maximum deposit for opening the IIA is 400,000 rubles whereas the minimum is 5 thousand. The state provides a tax deduction for this type of investment. Individual investment account is almost as popular as the bank deposits.
Startups
These projects stand out due to their innovative approach and attractive prospects. Many investors behind such startups have made a fortune eventually. However, market players should first consider whether this project is valuable for the customer. Experts point out that it is worth calculating the payback period of such projects before investing in them. For the startup investments to be successful, it is necessary to constantly observe the current market trends. In case the the startup turns out to be profitable, the reward from investments will be impressive. Otherwise, there is a risk of big losses.
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