1. OFZ
Federal loan bonds are an analogue of the bank deposit. They can be purchased for an amount of 1,000 rubles and sold any day. The yield on OFZ is about 8.0-8.5% per annum, taking into account the coupon profit and an upward revaluation of securities, regarding the prospect of further reduction of the Central Bank's key rate. Payment of income tax is not provided.
The main reason why investors do not apply this method is that too many actions are required: to open an account at a broker, to buy papers on their own. But the brokers' commissions are low, and the cost of depositary services is only 200 rubles per year.
2. Corporate bonds
As for these types of investment, the yield can be 9-10% per annum. In addition, the profit of an investor may be exempted from personal income tax: this applies to corporate bonds of Russian issuers issued after January 1, 2017, with yields not exceeding +5 percentage points from the key rate of the Central Bank.
The conditions are identical with OFZ, except that the state does not guarantee a return of funds. Therefore, you need to carefully choose the bonds: read the terms and follow every corporate history which you have invested in. This is a tool for sophisticated investors.
3. Open-end funds
Having bought units of bonded mutual funds, you do not have to think about portfolio diversification, reinvestment of coupon payments. But there is flip side of the coin - you will have to pay with profitability: the fund manager will charge up to 2% of the net asset value for its services and up to 3% for the entrance and exit from it. These commissions will deprive you of up to 5 percentage points from the income in a year at an investment horizon of up to 10 years. Choose management companies with a reliable reputation and good ratings.
4. Property
Over the years, this type of investment is considered to be one of the most reliable and profitable. But today we are talking only about commercial real estate - it can be said that it is investing in a new business that requires focused attention. Anyone who is looking for passive income, can use crowdinvesting place of real estate. The management company assumes all work. The total returns can reach 20%, where the rental income from leasing objects is slightly above 10% per annum, the rest is revenue from revaluation of the fund's property and indexation of rental income.
If preference is given to foreign real estate, then it is better to invest through Real Estate Investment Trusts (or eREIT funds that create foreign crowdinvesting sites), shares of whuch are traded on the exchange. At least 90% of all income is received by unit holders. REIT and eREIT are tools with reduced risk, but you should be careful: consider foreign currency risks. For example, in the past two years, investments in REIT have yielded losses to Russian investors in converting to rubles.
5. Structured products
There is no doubt that this is a tool with high risks, but with a sound approach this type can be considered.
There are two main types of such products - with 100% protection and participation rate, as well as with partial or conditional capital protection. Sellers often offer the first product in the form of a deposit with promises to return the invested funds under any circumstances and also a small income. Part of the funds will be invested in one of the basic exchange assets - stocks, gold, bonds, or oil. And obviously, the yield will depend directly on the change in the asset value.
An option to sell an asset with an exercise value equal to the investment is purchased for the other part of the funds. With an increase in the price, an investor will receive an income exceeding the deposit rate.
The second type of product (with conditional protection) promises revenue only under certain conditions. Otherwise, an investor will loss part of the funds. To minimize risks, you need to be well versed in investment issues. When you purchase a structural product, you acquire obligations of the company that offers you the product. So, a matter of trusting an issuer plays an important role.
6. Dividend shares
Investing in shares that generate dividend income is another way of investment. The risk on such investments is higher than if you make a deposit in bank, but the yield is higher. This is a very interesting story.
In this case, investments, as a rule, are long-term, so you need to be confident in those issuers whose shares you buy. The yield will depend on the time when you enter the securities in the period of market correction, and the investment period. For example, with an investment horizon of 3 years, you most likely will not receive the same income as with a longer one.
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