Investing their free funds in various instruments of investment, a person involves them in circulation.
This can happen indirectly or directly, but every time there is a certain degree of risk for the investor.
In any case, investing their savings is more profitable than keeping them "under the mattress."
After all, the depreciation of money is constantly.
So, the simplest options for investing free cash for a novice investor.
Bank deposits are the simplest toolFor investment of money resources. It is enough to come to the bank, sign a contract and put money on the account. The income depends on the amount of investments, interest rate and reputation of the bank. The system of compulsory insurance of cash deposits allows you to call the deposit the safest tool for investing.
Investing in real estate is one of the most reliable types of investments.
The demand for residential and commercial real estate is high and prices are constantly growing. But investing in real estate requires large monetary costs and will only yield income after a long time.
Investing in shares
Investing money savings in stocks -Very profitable type of investment for a long time. For short periods of time, the yield of shares may be low. It is almost impossible to completely ruin, but independent stock trading requires special training. The management of shares goes through a broker, and in order to start trading, it is necessary to open a brokerage account with a financial or brokerage company. You can buy and sell shares bypassing the exchange by signing a purchase and sale agreement and notifying the registrar participating in the stock market about this.
Mutual Investment Funds
You can also invest money in stocks by buyingInvestment share in the Unit Investment Fund. Investments in Mutual Funds are an opportunity to invest money without any knowledge of the stock market, as the management company will conduct the trade. The minimum period of profit is 1 year. The potential profitability rises with the growth of the investment term, as a compound interest begins to work.
You can buy investment shares in officesManaging Companies (CC) or their partners (banks, investment companies and other financial institutions). Certain problems exist because of the instability of this market. To avoid financial losses due to illiterate management, you should choose a management company based on the analysis of the yield of a unit fund for several years.
General Funds of Banking Management
OFBU (General Funds for Bank Management)Are intended for investors wishing to profitably invest free cash for a long time. The level of potential profitability of the BFU may exceed the deposit rates of the leading Russian banks. All activities are under the control of the Bank of Russia. Opportunities for investing in the MBMF are much greater than for Mutual Funds, as trust assets can be not only cash, but also securities, precious metals or natural precious stones.
You can invest your savings in stocks throughTrust management, in which the investment decision is made by the manager. The advantage of trust management over mutual funds is the speed of deposit / withdrawal of funds, which ensures their rapid movement through the purchase or sale of shares at the current price. In addition to securities, it is possible to use futures and options. Potentially investing in management companies is more profitable than in mutual funds and OFBUs, but the lack of requirements for portfolio diversification (dispersal of finances) and the strong influence of the "human factor" suggests a high risk of this tool.