Investments - what is it in simple words, what is it for, and where should a beginner start creating capital?

We all save money. A schoolchild saves for a new smartphone, a student for a car, a young family for an apartment (or more often for a down payment for a mortgage), a worker for a vacation, and a pensioner for a funeral. And no matter how tense the economic situation is, money somehow accumulates. Otherwise, why are there so many iPhones and expensive cars around?

But what most people don't realize is that when you have accumulated money under your pillow, it quietly diminishes. Every night the “savings killer” comes and steals a small part of our savings. And this killer's name is Inflation.

The official inflation rate in Russia for 2020 is almost 13%. But we know that it is quite underestimated (those who remember the prices for products in 2014 understand this especially well). The real inflation rate for 2020 was definitely more than 20%.

Thus, all our savings depreciate at a rate of at least 20% per year or 1.65% per month. So, now most investment methods help not to increase your funds, but to at least slightly compensate for inflation.

In such a situation, it is very unwise to keep money under your pillow. Any spare money should be put to work. But how to invest them as reliably and profitably as possible?

Investing is not that difficult.

I think everyone has an idea of ​​what investing is. When investing, you put your money to work. That is, you invest money expecting to receive even more money in the future.

But we must not forget that investing entails risks. Instead of the expected profit, you may receive a loss or even lose all your money.

Therefore, the main rule of investing is risk diversification. According to this rule, you should split your savings into parts and invest them in different investment projects.

For example, let your investment portfolio be 100,000 rubles. Then you need to choose several investment instruments that are suitable for you. Let's assume you have chosen mutual funds, PAMM accounts and backing and HYIP projects. Now you will need to distribute your portfolio between instruments depending on how much risk you are willing to take.

Let’s say that you are committed to moderate risks and distribute your money like this: mutual funds – 40%, PAMM accounts – 40%, backing – 10% and HYIP projects – 10%. Now you need to apply the principle of diversification within each investment method you choose.

That is, you will need to select several different PAMM accounts and distribute your 40% of the portfolio between them. The same must be done with other chosen investment methods.

In order to comply with this rule, you need to use several tools that can multiply your money. I have selected 12 of the best ones for you.

Investment analysis

Investment analysis is a set of methods for substantiating investment activities. The goal is to determine the level of investment value and the expected effect of profit growth.

Analysis is expected:

• dynamics of the investment climate;
• investment structures;
• profitability of the project.

Methods:

1. Discount flow analysis – bringing cash flows excluding tax accounting to current value.
2. Comparative analysis is a comprehensive assessment of the purchased value against the background of others.
3. Replacement value analysis – takes into account the value of an object in the future to its current value.

Let's compare the 12 best ways to invest.

I have not only selected the 12 best investment methods for you, but also compared them with each other. For comparison, I selected several parameters, which I decided to evaluate using a 10-point system, where 1 is the lowest score and 10 is the highest.

Comparison of the best investment methods.

The following options were selected:

• Simplicity. This parameter characterizes how easy it is to understand this method of investing, understand the principle, find a suitable company and make a contribution.
• Profitability. Here the average return on investment will be assessed. Most often, this and the following points are interconnected: the higher the profitability, the higher the risks.
• Reliability. This parameter characterizes the riskiness of the analyzed investment instrument.
• Entry threshold. Shows the minimum amount you can invest.
• Liquidity. Estimates how quickly you can withdraw your deposit, and what losses await you if you withdraw money prematurely.
• Passivity/activity - this parameter shows how passive this type of income is. That is, 10 points means “put it in and forget it,” and 1 point means that in order to get maximum profit you will have to spend additional effort and time.

Of course, all my assessments will be subjective and I think that many readers will not agree with them.

Investments for individuals

There are quite a lot of different investment instruments and projects for investing money.
Among them there are many high-risk instruments, such as cryptocurrency. In this review we will consider only conservative investment instruments.

Popular types of investments for individuals:

1. Bank deposits.
2. Securities.
3. Precious metals.
4. Real estate.

Each type of investment requires the investor to have knowledge of the instrument. Without understanding and knowledge in investments, you cannot invest money in any investment instruments.

Before investing money, an investor should definitely find out as much information as possible about the investment instrument and what risks it carries.

Bank deposit.

A bank deposit is the most understandable and simple way of investing for an ordinary person. Even any grandmother understands how everything works. After all, even in the Soviet Union, in which there was no investment, people kept money in savings books. And one of the heroes of a popular Soviet film urged fellow citizens to keep money in savings banks.

All you need to do to make a deposit is to choose a bank and come there with your passport and money. What could be simpler? I give it 10 points.

At the same time, the profitability of a bank deposit is not high. At the moment, deposit rates range from 7% to 12.5%. I think this is one of the lowest returns of all investment methods. Deserves 1 point.

But you can be sure of the reliability of your deposit. Deposits are insured by the state. Even if you plan to invest a large amount, then in order to insure against the fact that your bank’s license will be taken away, you can break the amount into small parts and invest in several banks. In this case, even if the bank is deprived of its license, and your deposit was less than 600,000 rubles, you will be compensated for both the deposit and interest. 10 points for reliability.

You can start investing with an amount of 10,000 rubles. 8 points on the entry threshold .

In most cases, you can withdraw money from your deposit at any time. But if you withdraw money early, you will lose most of your profits. 7 points for liquidity.

This type of deposit falls into the “put it in and forget it” category. All you have to do at the end of the investment period is go to the bank and withdraw your money. Well, or extend the deposit. 10 points .

Pros and cons of this investment method:

Pros:

• High reliability.
• Availability.
• Low taxes. You will have to pay 35% of taxable income, which is calculated using the formula: all income minus the refinancing rate.
• Predictability of results.

Minuses:

• Low profitability.

Conclusion. This type of investment serves not to increase your money, but to at least somehow compensate for inflation. In any case, if you do not want to take risks at all, then this method is better than just keeping money under your pillow.

Mutual investment funds (UIFs).

For an ordinary person, investing in mutual funds does not seem like a very clear idea. To understand this, try explaining to your grandmother at the entrance that you are buying shares in a fund of a management company that invests money in assets.

You also need to take the choice of mutual funds seriously, studying the statistics of different funds. After this, you need to go to the office of the company or its agent. 6 points for simplicity .

The profitability here depends on the type of funds and on the approach to choosing a mutual fund. The riskier the investment the fund makes, the higher the potential return is expected, but in most cases it is not high. 3 points .

Reliability also greatly depends on the type of fund. While bond mutual funds are one of the least risky investments, investments in venture funds carry very high risks. On average, I would rate the reliability at 7 points , because at a minimum you will not be able to lose a large part of your deposit, as in other investment methods.

The minimum cost of a share starts from 300-500 rubles per share, which is suitable for almost everyone. 10 points .

I think most people invest money in open mutual funds, so at this point we will only talk about them. You can withdraw money from open funds by selling your shares in 1-3 business days. I'll give it 10 points .

Still, with this method of investing, you will have to spend a little time managing your investments. Of course, the management company will manage the fund without your participation, but you will have to transfer money between mutual funds and decide when to sell shares and when to buy. 8 points .

Pros and cons of this investment method:

Pros:

• Opportunity to create your own investment portfolio.
• A large number of assets in which the fund can invest.
• Low entry threshold.
• Relatively low risks.

Minuses:

• Possibility of incurring a loss if the fund choice is unsuccessful.
• Relatively complex investment procedure.
• An investor should be interested in the stock market.

Link to topic: All about investing in Mutual Investment Funds (MUIFs).

Conclusion. With successful selection of funds and proper management of your investments, the profit from the deposit covers inflation and brings in a small income.
But we must remember that many funds bring losses to their investors.

Investment development

Investment development is the acquisition of various investment instruments, the study of innovative trends to identify the most prestigious areas. The stock market, which is at the level of development, offers a wide range of ways to increase the money supply.

To preserve investment capital, follow the rules:

• withdraw interest on time;
• withdraw part of the deposit, increasing it at the expense of interest.
• don’t be afraid to earn less than you planned.

PAMM accounts.

Brokerage companies have invested so much money in advertising in recent years that only the deaf have not heard about Forex and the tempting prospects of becoming a successful trader. Therefore, it is not difficult for an ordinary person to understand the principle of PAMM investing - give money to a trader so that he can play with it on the stock exchange.

You can find a suitable broker on the Internet. At the moment the most popular is Alpari. So I'll give it 7 points for simplicity and clarity.

Some accounts can bring you more than 100% profit per year, while others can drain all your money. But, when using the principle of risk diversification, the income from this type of investment is slightly higher than in mutual funds and is estimated by me at 5 points .

As returns increase, risks also increase. When using the principle of diversification, you will not lose the entire investment amount, but you may receive a loss. For reliability I would give 6 points .

You can start investing in PAMM accounts with an amount of $10. At the moment this equals 700 - 800 rubles. The amount is small, so I give it 10 points .

You can withdraw money at any time within one or two business days. 10 points for liquidity .

You will have to spend time managing investments. If you do not use automatic tools, you will have to log into your personal account almost every day. After all, the market situation can change very quickly and your managers can make critical mistakes. I give it 6 points .

Pros and cons of this investment method:

Pros:

• Low entry threshold.
• Opportunity to create your own investment portfolio.
• Simple investment procedure.

Minuses:

• It is possible not only to receive a loss, but also to lose the entire deposit amount.
• An investor should be interested in trading on the foreign exchange market.

Link to topic: All about investing in PAMM accounts.

Conclusion. This is a very common method of investing, which has gained popularity due to advertising. This method of investing money is more suitable for those people who like the foreign exchange market or who have experience trading on the stock exchange.

What is investment?

The financial illiteracy of the majority of ordinary people and the prevalence of American films about tough Wall Street businessmen have formed in the minds of most people the idea that investing is a path for very rich people or a business dealt with by large investment companies. In fact, this is not so, and you can become an investor with very small amounts of money that are sufficient for investing on the Internet. To understand who is available for investment activities, you should first understand what it is.

Investment is the investment of funds in tangible and intangible assets for a certain period of time with the aim of making a profit.

The word “investment” denotes both the commercial process of investing funds and directly those material goods that are invested and bring profit. It is worth noting that investing is not only a way to earn money, but also a way to store funds, because if you just put money under the mattress, not only will it not be able to multiply, but it will also depreciate over a period of time due to inflation and devaluation.

Thus, we figured out that investment is a rather broad concept, which implies not only a form of income for banks, large businessmen and businessmen who already have a lot of money. Each of us can also become an investor - you just need to find investment options that are suitable for you.

HYIP projects.

This type of investment is often called quasi-investment. In simple terms, these are pyramids that accrue profits to participants from new deposits.

Investing in these projects is very easy. Many of them accept bank transfers and payments through the most popular payment systems. Most often, HYIPs have a legend that explains to gullible investors where the company gets the money to pay such high interest rates.

It is very easy to contribute to such a project via the Internet. But if you are new to the Internet, it will be more difficult. For convenience I would give 8 points .

HYIP projects promise cosmic profits. On average, long-term HYIPs offer to pay 20-30% per month. Short-term ones can promise to double the deposit amount in just a few days. 10 points for the promised profitability, but in fact it is, of course, lower.

There is no need to talk about any reliability of deposits. The project can collapse at any moment. Every day 1-2 HYIP projects are opened and the same number are scammed. Therefore, I would give only 1 point .

I think at this point and the points below we should consider only long-term projects. The minimum entry amount starts from 1,500 thousand rubles. 9 points for a low entry threshold.

In most projects, the deposit cannot be returned. It will be returned to the investor throughout the investment period with each payment. Therefore only 1 point .

If you have already invested money in one of the HYIPs, then all you can do is sit and hope that the project will exist and pay. There is nothing you can do anymore. Completely passive investments deserve 10 points .

Article on the topic: List of the best HYIP projects.

Pros and cons of this investment method:

Pros:

• High profitability.
• Convenient deposit and withdrawal of money.

Minuses:

• Very high risks.

Article on the topic: Strategies for investing in HYIPs.

Article on the topic: Everything about investing in hype projects.

Conclusion. Only those who are “in the know” can make money on HYIP projects. You need to be able to analyze projects and find those that can generate income. Most people who make money on HYIPs compensate for the loss when investing by attracting referrals.

Backing (investing in poker players).

Almost everyone knows about a game like poker. At the same time, many people understand that successful players receive big money for winning tournaments. But how many people know that most poker players do not play with their own money in major tournaments?

That is, if a strong player does not have enough money to participate in a tournament, he turns to an investor (sponsor), who receives a percentage of the prize money if he wins. A player may also have several sponsors who invest in the player and receive a profit from the winnings depending on the amount of investment.

You can buy a share from a player only by agreeing on this on specialized forums. For example, on the forum of this site: PokerStrategy.com. To purchase, you will need to personally contact the player. For convenience I would give 4 points .

It is difficult to calculate the average income from backing. But, with cooperation with good players, income can become regular. I will give 5 points for profitability.

The reliability of this type of investment highly depends on the choice of players. In addition, when purchasing a share, you do not sign any contracts and the player may “not want” to give you your share for winnings. 3 points for reliability.

You can buy a share from $10. But only novice players sell so cheaply; to buy a professional’s share you will need to invest 200-300 dollars. But it’s still better to start with small investments, so I give 10 points for a low entry threshold.

There is no such thing as withdrawing money. You pay a share, and if a player gets into the prizes, you take the profit.

After you have made a deposit, all you have to do is wait for a positive outcome. You can no longer influence anything. 10 points.

Pros and cons of this investment method:

Pros:

• The possibility of making a big profit if the player wins the tournament.

Minuses:

• More suitable for people who understand poker.
• The deal is based only on a verbal agreement with the player.
• Typically, players earn more than sponsors.

Conclusion. Rather, backing is suitable for people who are well versed in poker. The average person will have a hard time choosing the “right” player.

Investing for Beginners

Not everyone is born a seasoned investor; everyone starts from scratch and makes a lot of headway before achieving any results. If you have no desire to make big bucks and risk money, then we offer you a short course for a young fighter - recommendations on successful investing for beginners.

Investment process assessment

Once you have chosen the environment in which you are going to operate, you need to study it carefully. Analyze trends, find out how you can get the most income, determine the approximate time frame for breaking even. For example, if you are planning to invest in real estate, then be sure to research the market, determine which properties are in greatest demand, and whether an economic crisis is looming.

Investment forecast

Predict what changes in your profitability may occur in the future and whether the investment will be profitable after any period of time. Also evaluate what factors may influence changes in market conditions and how to avoid negative changes. It would be a good idea to consult with specialists: traders, stock analysts, PAMM investment managers. Do not forget to evaluate how risky your chosen investment projects are and whether this risk corresponds to the profitability that can be obtained.

Investment form

Decide what exactly you are willing to bet on and in what form the investment will be made. If you are a beginner, then most likely it will be financial assets; in the future, both tangible and intangible assets can be added.

Investment purpose

Decide in advance on the purpose of the investment and act with an eye on it. If you just need to get a certain amount of money and stop investing, then you should not invest in expanding production or increasing sales. If you see further prospects in investing and there is a positive trend, then there is no point in withdrawing money from the project, because there is an opportunity to earn more.

Activity analysis

After the start of your deposit, it is necessary to evaluate the development of the property and analyze whether there is a prospect - that is, at this stage it is necessary to assess the effectiveness of the investment. Perhaps the situation has not turned in your favor, then certain adjustments should be made.

Monitoring

Even if the project in which you have invested money does not involve your direct participation, this does not mean that you need to wait idly for profit. It is important to constantly monitor the situation and control the dynamics, especially if you have invested in a high-risk investment object.

Trust management in sports betting.

Most people view sports betting as gambling. But professional privateers earn a lot and consistently from betting on sporting events.

Many privateers create their own PAMM accounts, into which they actively attract investors. This type of investment is similar to PAMM accounts in the foreign exchange market.

In order to make a contribution, you need to register on the BetPamm.com trust management platform and select several accounts for investment. 7 points for simplicity.

If you look at the profitability charts, you will see that top privateers increase the funds in their accounts by thousands of percent. Such income should be captivating. But on average, the profitability from this investment method is much lower and deserves 6 points .

If you use the principle of diversification and invest in several PAMM accounts, then at least you will not lose the entire investment amount due to privateer’s mistakes. For reliability I would give 6 points .

You can start investing with very small amounts. For a low entry threshold 10 points .

You can withdraw money quickly and easily. 10 points .

After investing, you will need to monitor the selected PAMM accounts in order to transfer money between accounts in case they go into a loss or achieve maximum profitability. 6 points.

Pros and cons of this investment method:

Pros:

• Short-term investment.
• Independent portfolio development.
• Low entry threshold and the ability to use a demo account.

Minuses:

• Possibility of receiving a loss or losing the entire amount.

Conclusion. This investment method is very similar to investing in PAMM accounts in the Forex market. But it is not so famous due to the lack of advertising.

Startups (venture investments).

In recent years, stories of successful startups have been heard from everywhere. Everyone understands how profitable it would be to buy shares of young companies that in a few years would turn into large billion-dollar corporations.

The first way to invest in a startup is to enter into an investment agreement with the company directly. Some companies actively attract investors on their own by selling them future shares at reduced prices. An example of such a startup is Unitsky’s SkyWay.

You can also invest in a startup using crowdinvesting platforms and startup exchanges. Exchanges do not inspire confidence in me, since I consider them hype (read my review of ShareInStock). But many reputable sources call them real companies. When you go to the exchange, you will see audited and verified companies in which you can buy shares. All you have to do is choose a suitable startup and buy a share in it. 7 points for simplicity .

For purchasing shares on the stock exchange, the company will pay you dividends in the amount of 2% to 7% per month. In addition, an investor can sell his shares if the company develops and its shares increase in price. He can also sell shares if they lose value and he realizes that he has invested in a shell company. For profitability 6 points .

You need to understand that startups are a risky type of investment. According to statistics, 70% of them are unprofitable, and 20% of these 70% are simply scammers who embezzle investors' money. But even of those companies that are among the 30% of successful ones, half break up in the near future due to internal problems.

One of the ways to invest in startups is crowdinvesting platforms. Unfortunately, in Russia they are not very developed and the minimum amount of investment through them is quite high. But all companies represented on the site are subject to mandatory verification. There is also the opportunity to invest directly in startups. For reliability 6 points .

The barrier to entry into this type of investment is not high. 10 points .

If you decide to withdraw money or redistribute it within the share exchange by selling all or part of the purchased shares, then you will need to sell them on the exchange at a price below the market price. The lower the price you set, the faster your shares will be bought. 7 points .

To make the most profitable investment, you will have to devote your time. It will be necessary to track changes in the value of shares on the stock exchange, selling and buying them. There is no manager here, so you have to do everything yourself. 5 points .

Pros and cons of this investment method:

Pros:

• Convenient and simple investment procedure.
• Very low entry barrier.
• High potential profitability.

Minuses:

• High risks with passive investing.

Article on the topic: What is crowdinvesting?

Conclusion. If you decide to invest in startups, then it is better to use exchanges. You will pay about 5% for withdrawing money, but you will be protected from scammers.

Where to invest money?

The issue of investing will never lose its relevance as long as money and Bitcoin exist and as long as they can be “transformed” into material objects and services, because investments are, on the one hand, an opportunity to store money and increase it (if we take into account investments with almost zero risk) . The question of where to invest money in order to get the desired profit from it is also relevant - fortunately, there are plenty of ways to make money make money.

Investments in gold and precious metals

Since ancient times, precious metals have had value, which is still the case today. Therefore, it is not surprising that many investors choose gold and other precious metals as an investment object. But such investing has both its pros and cons. Firstly, the price of gold depends on many factors and it is currently difficult to say what can affect its price. Secondly, the cost of gold, if it increases, is insignificant, and most investors consider this type of investment as storing their funds, which can be terminated at any time and the bullion can be exchanged for real money. From the point of view of multiplying funds, it is not possible to call gold a very profitable investment instrument, so if you look at the return on investment, it is better to look for a better option.

Real estate investing

In today's changing world, when it is difficult to find stability, investors are increasingly looking for the most reliable ways to invest funds. Real estate is one such stable investment. In addition, this type of investment is liquid; residential and non-residential premises will always increase in price and be in demand among consumers. At the same time, the investor is faced with the task of being able to navigate the flow of information and have a good understanding of the essence of the area that he has chosen to make money. When choosing to invest in real estate, it is important to take into account not only the geographical location, prospects, and quality of the property in which you plan to invest, but also take into account multiple factors that in the future will affect the pricing of the structure, and indeed its integrity and safety. So, you cannot buy a house in the village and expect that you can make good money on this investment in the future.

Investments on the Internet

The Internet has entered our lives so tightly that absolutely all spheres of human life have migrated to this virtual space. It goes without saying that we have found a place and investment on the Internet. At the same time, this type of investment has a large number of directions, some of them even operate outside the framework of the law. The most common online investment objects are:

• Forex trading, stock market;
• PAMM accounts;
• HYIPs and various trust funds (this also includes MLM investment fund and other quick investments with considerable risk);
• Bitcoin investments and investing in other cryptocurrencies.

In addition to these specific types of investments in the network, more prosaic ones can be distinguished: investing in your own website, social account, investing in an online project on partnership terms, and much more.

Deposit in banks

Making bank deposits are investment deposits that are most common in society. But it is not possible to consider them profitable, since a low annual percentage, taking into account inflation, will not bring the investor practically any profit. On the other hand, such an investment can be considered a good way to store money.

Investing in mutual funds

Mutual funds have some similarities with PAMM investing (read the article “PAMM Strategy” on the blog). The essence of mutual funds is that investors invest funds in a “common fund”, after which shares of various companies are purchased by traders. Next, the profit received is divided among the participants in proportion to the size of the investment. The disadvantage of investing in mutual funds is that no one can say exactly when there will be a profit and whether it is destined to happen at all, nor can anyone guarantee the return of your funds.

Investments in Startups

A profitable type of investment (very similar in essence to a type of investment such as venture capital investment), in which funds are invested in an interesting, unusual project that should bring good money in the future. In this case, after development, the project may not take off and the profit, like your money, will not be returned to you. In the opposite case, when startups show positive dynamics and are well received by the consumer, the sponsor, that is, the investor, has a good opportunity to make money.

Currencies and precious metals.

Surely, among your friends and acquaintances there is a person who, with a smart face, claims that money should be kept in gold (platinum, dollar, pound, yen, etc.). This approach says that the person does not understand investing, but simply uses popular “stereotypes”.

For example, if you look at the dynamics of gold prices, you will see that since 2012 it has depreciated against the dollar by almost one and a half times.

If you decide to do without the services of managers and buy precious metals or currency yourself to store money in, then this procedure will not be difficult.

You can buy currency at bank branches, or using the services of brokers (which will be more profitable than buying through a bank). You can also change currencies using online and offline exchange offices or payment systems.

Precious metals can also be bought in banks. And it became possible to purchase gold using the WebMoney payment system.

Also, do not forget about cryptocurrencies, for example, Bitcoin, which, according to all forecasts, will rise in price in the long term. Buying these assets will not be difficult, so I give them 8 points .

Article on the topic: Comparison of popular anonymous payment systems.

Buying precious metals or currencies for long-term investment primarily protects you from depreciation of the national currency. For many countries with weak currencies, this is a smart decision. But rates behave unpredictably, so there may not be any profitability. 2 points .

A beginner does not know which direction the exchange rate will go in the near future, so his investment is more like gambling. Even if people now prefer to keep money in dollars, what is the guarantee that oil will not rise in price in the near future along with the ruble?

You can probably protect yourself from the depreciation of the national currency by storing half of your money, for example, in dollars, and the other half in rubles. This way, if rates fluctuate, you won’t lose anything, but you won’t earn anything either.

Profitability depends on luck and I would give only 2 points .

The entry threshold depends on the type of asset and the method of purchase. On the exchange, 1 lot will cost at least $1,000, and through exchange offices or payment systems you can exchange amounts of several dollars. So anyone can buy currency or precious metals. 10 points .

You can sell currency as quickly as you can buy it. In exchange offices and stock exchanges this is done almost instantly. Gold is also a highly liquid asset. 10 points .

In general, trying to influence profits by tracking rates and then selling assets turns you into a trader. And I wouldn’t classify trading as investing. Therefore, I understand investing in currencies and precious metals as “invest and forget.” Therefore 10 points .

Pros and cons of this investment method:

Pros:

• Can protect against depreciation of the national currency.

Minuses:

• For a beginner, this is a risky and low-yield way of investing money.

Conclusion. Buying precious metals and currencies is a very unpredictable way to invest money for a beginner. You can reduce risks and increase profitability either by entrusting money to a manager, or by independently studying trading in the foreign exchange market.

Securities.

I think most securities people are only familiar with stocks. The most financially literate will probably be able to name bonds. Only a few people know how to invest money in securities.

In fact, buying securities is no more difficult than buying currency. You also need to contact a large bank or broker. 7 points for simplicity.

When a beginner buys securities, making a profit is a big question. And, if even a beginner can count on a small income when investing in bonds, then the stock market can bring a loss to a novice investor. 3 points for profitability.

In fact, usually low returns entail low risks, but not in this case. The risks are high in the stock market. 3 points for reliability.

You can start investing with a small amount. The entry threshold starts from approximately 1,000 rubles. 9 points .

Securities can be sold on the stock exchange in the same way you bought them. This asset is considered quite liquid. I give it 10 points .

Again, if a person begins to manage his securities on his own, then he already turns from an investor into a trader. Therefore, here we consider only passive investing. 10 points.

Pros and cons of this investment method:

Pros:

• A simple investment procedure and a low entry threshold.

Minuses:

• For a beginner, this is a risky and low-yield way of investing money.

Conclusion. If you have already decided to invest in securities, then it is better to contact a professional manager who will manage your funds for a small commission. As a newbie, investing in the stock market on your own is more like gambling than investing.

"Fast" consumer goods

Fast-moving general consumption goods include such things as:

• soap, toiletries, hygiene items; • detergents, household chemicals; • cosmetical tools; • products for oral hygiene; • batteries; • pulp and paper products.

For a wide range of people, such goods are an obligatory part of the consumer basket. Therefore, companies from industries related to their production are stable.

The market profit of these products is small because there is strong competition in the market. But the sales volume is so high that it compensates for this shortcoming. In addition, to attract investors, goods provide dividend income.

Real estate.

There is one stereotype among people: “The most reliable investment is buying real estate.” But do not forget that real estate includes not only apartments, but also various buildings, structures, water bodies, forests, etc.

In general, there is some truth in this, because many people want to save up for an extra apartment in their old age in order to rent it out and get a good increase in their pension. And if something happens, you can sell it and get good capital.

You can invest in residential or commercial real estate, under construction or already built, suburban or located within the city. The ease of investing also depends on the type of property you choose.

To invest in residential real estate, you will need to contact a realtor, look for suitable options, fill out a lot of documents and, possibly, make repairs. As for me, the procedure is quite dreary.

If you decide to buy commercial real estate, then the hassle becomes much greater. You will need to do accounting, pay taxes, manage facilities, and re-register energy supplies. On average, I would give 2 points .

As for profitability, from residential real estate you can receive no more than 1 percent per month for long-term rent. This is 7-10% per year. Renting residential properties on a daily basis turns into work and is not considered.

If you expect to sell it at a higher price after some time, then it is far from certain that prices will rise. In general, I would give 3 points .

Real estate is indeed highly reliable. Unless, of course, this is a facility under construction.

Even if real estate prices fall, you will continue to receive a stable rental income. For reliability I give 9 points .

The entry threshold is high, even if it is a collective purchase of real estate. The minimum investment amount starts from several hundred thousand rubles. I'll give it 2 points .

It often happens that in order to sell real estate (especially commercial real estate) faster, you have to set a very low price. Sometimes properties cannot be sold for several months. I give it 3 points .

If we consider long-term rental of residential real estate, then we will not have to spend much time on management. You will need to find tenants once and then withdraw money once a month. 8 points .

Pros and cons of this investment method:

Pros:

• A clear scheme for generating income.
• High reliability.
• You don't need any special knowledge or experience in investing.

Minuses:

• High entry threshold.
• Low profitability.

Article on the topic: How to invest in real estate? 5 hacks and a lot of tips.

Conclusion. Investing in residential real estate is a way of investing money that is understandable to everyone. This method is especially popular with conservative investors who do not want to take risks.

Investments for Beginners: Review of Tools

Most often people invest in:

• Real estate (land, residential or commercial real estate, equipment),
• Business and intellectual property (patents, research, education),
• Finance (securities, bank deposits, precious metals, currency).

If the first two industries require more or less large capital, then the third is also suitable for investors with a minimum amount. Therefore, let's look at them in more detail.

• Bank deposits are the simplest and safest type of investment. Income from deposits is guaranteed, and deposits up to 1.4 million rubles are insured. But we can only call deposits investments conditionally—the income from them, at best, only covers inflation. One of the advantages is that you don’t need special knowledge to invest in bank deposits.
• Bonds are a debt instrument that is quite safe in terms of risk, but the income from which is slightly higher than from deposits. Refers to a conservative investment strategy.
• Shares (securities) - the level of risk increases to moderate, but much depends on the investor’s choice of shares, so having at least basic knowledge is necessary. Income from shares can be obtained in two ways - from dividends and from the growth of the shares themselves ( How to trade shares).

You can learn about the profitability of this financial instrument in the article: How much can you earn on stocks . To select stocks, I recommend reading the article fundamental analysis of stocks.

• Mutual funds - purchasing a share in a ready-made portfolio. When investing in mutual funds, the profit is divided among all owners in proportion to the invested share. The advantages include the possibility of a minimum capital - from 1000-5000 rubles and the passivity of this investment method.
• Precious metals . Investing in them is possible both in the form of a physical purchase (metal) and investing in various financial instruments, for example, shares of mining companies or CFD contracts without leverage .

By placing capital in different assets after several reporting periods, you can identify the most profitable options and optimize your investment portfolio.

A list of current investment methods with expert advice can be found here:

• Protective assets in crisis
• Where to invest money in 2020
• How to invest in a crisis - expert advice

How much money do you need to invest?

There is simply no minimum investment for beginners - you can create

business from scratch without investment
. The optimal amount for investment at the initial stage can be considered from 30 thousand rubles. It will not bring colossal profits, but it will allow you to understand most of the nuances of investments in practice.

Step 4 Choosing a partner.

Regardless of which assets you choose, to start investing, you need to choose partner companies. For mutual funds and Russian securities, these can be well-known banks. They act as an intermediary - a broker between individuals and the companies themselves that own the assets in which you decide to invest.

I invest through the famous Russian broker BCS.

• BCS Broker

BCS Broker - occupies a leading position in terms of turnover on the Moscow Exchange.

• Convenient replenishment from a bank card of any bank,
• Access to the stock, foreign exchange and derivatives markets of the Moscow Exchange, St. Petersburg Exchange and international platforms,
• Trading in the familiar platforms Quik, Metatrader, TWS or your own application,
• Forecasts and investment ideas from bank analysts,,
• Dividend payment,
• Withdrawal of funds without commissions
• You can make money when stocks fall.

Try it on a demo account
Cooperation with a reliable broker is one of the most important stages of investing, because... success depends on it. Agree, what is the use of high profitability if the broker disappears along with all your money.

For foreign shares, cryptocurrency transactions and investing in the stock market, it is more profitable to choose a foreign brokerage company. On my own behalf, I can recommend companies that I have tested and with which I have been cooperating for 2-3 years:

• Roboforex Stock
• FxPro

Roboforex Stock - with minimal commissions for purchasing foreign shares

• 15 years in the stock market,
• $100 is the minimum deposit,
• 95% positive feedback,
• Access to American and European stock markets,
• Free stock trading training course,
• Dividend payment,
• Current trading ideas for investment,
• Free demo account with the ability to test robots.

FxPro is the best in CFD trading and execution speed

• Shares of leading companies in the USA, England, France and Germany,
• 1:25 — leverage for buying shares,
• Trading in the familiar MT4,
• 11 milliseconds - average execution speed ,
• Dividend payment,
• Withdrawal of funds without commissions
• You can make money when stocks fall.

Recommended reading: Booking affiliate program

I also publish weekly investment reports highlighting partner companies. You can use the brokers listed in the reports as a basis.

To develop knowledge in practice, but without the risk of losing money, many brokers offer demo accounts. I recommend learning from them.

Step 6. Top up your account and invest.

Before depositing funds into your account with a broker, be it Russian or foreign, be sure to familiarize yourself with the fees for depositing and withdrawing funds and go through the initial verification. It is better to contribute a larger amount in parts in several stages and distribute it between assets gradually.

Well-known investors recommend leaving 10-15% unallocated to quickly respond to emerging opportunities. It often happens that you have distributed everything at once and then an excellent asset appears at a good price, but there is no more free money . The next similar opportunity may appear in 3-4 years.

Investments for beginners: step 7. Control.

As the proverb says, “ Money loves counting ,” so no matter how passive your chosen investment strategy is, you need to fill out the investment return table every 7-30 days. This will allow you to change the asset in a timely manner if it has ceased to generate the required income or you do not meet the plan drawn up for the goal.

But control is needed not only over money. It is important to monitor your emotional state and not make investment decisions based on emotions.

Any investor has ever lost money - this is an inevitable process. But some investors ultimately succeed, while other beginners give up at the first loss. Anyone can engage in investing, but it is important to understand that this type of activity requires the development of special traits in one’s character. To invest, you need to gradually develop the following qualities:

• consistency,
• emotional control,
• analytical and strategic type of thinking,
• strong nerves. You must learn to lose money without prolonged depression,
• the ability to draw conclusions from mistakes.

Investments in business.

Of course, here we will not talk about investing in creating a business from scratch, but about buying an existing company. Creating a business from scratch is hard work with unpredictable results. An investor is interested in an established business with streamlined processes that generates a stable income.

To find a company to buy, you can use newspapers or bulletin boards. But most often, the entrepreneur does not talk about the sale of his brainchild, so as not to raise doubts among employees and clients.

Therefore, they prefer to contact brokerage companies that will sell their business. They also distribute information about the sale among friends and acquaintances.

Once you have found a suitable business, you will need to audit it to ensure that business processes are in order. This whole procedure can turn into an insurmountable obstacle for a beginner. 1 point for simplicity and clarity.

Extremely profitable businesses are rarely sold, so you should count on average profitability. Of course, profitability greatly depends on the type of activity and quality of management. I'll give it 6 points .

Many people think that entrepreneurs only sell unprofitable businesses. But actually it is not. The reason for the sale may be: an urgent need for money, disagreements between owners, loss of interest, lack of time (especially if one entrepreneur has several types of business), etc.

The audit will help analyze the reliability, profitability and prospects of the business. Therefore, the chance of buying a loss-making asset is very small. I give it 7 points .

The barrier to entry into this type of investment is relatively high. Yes, there are very small companies, but they don’t cost a penny. Buying a profitable business with streamlined processes is similar in cost to buying real estate.

People often join together in groups to buy a business. For example, several friends and acquaintances buy a company together. But even in this case, the entry threshold remains high. I'll give it 2 points .

If you urgently need money, the company can be sold. If your business is unprofitable, then selling it will be difficult or almost impossible. It is easier to sell a profitable business, but most often this procedure takes a lot of time. Therefore 3 points .

If you begin to independently manage the purchased company, you will turn from an investor into a businessman. Therefore, you will need to hire an executive director to manage your business. But even in this case, you will have to control it and analyze the company’s activities.

And you will need to select a manager yourself. Therefore 2 points .

Pros and cons of this investment method:

Pros:

• A reliable and profitable type of investment.
• You can choose the business that you like and understand.

Minuses:

• Complex procedure for selecting and registering a business.
• High entry threshold.
• It will be necessary to delve into business processes and, to some extent, manage the company.

Conclusion. I believe that if you have sufficient capital, buying an existing business is one of the best ways to invest money. But it is advisable that you like the type of activity your company does and have at least minimal experience in running a business.

Investments where to start

You should start investing if you have no significant credit card debts and have a financial cushion for at least 3 months..

Investments for beginners: step-by-step plan

If the capital is small plus the knowledge base is minimal, then for a successful start it is best to adhere to the following scheme:

• 1 step. Basic knowledge.

Let's briefly get acquainted with the terminology:

• Investment - investing capital and receiving interest on the invested funds. An investment can be called both a bank deposit and investing money in starting a business.
• Investing is the process of investing capital in order to get more.
• Investment instruments - a variety of assets in which investments are made. These include: deposits, stocks, bonds, mutual funds, real estate, etc.
• A portfolio is a set of instruments carefully adjusted by the investor in accordance with the investor's goals.
• Diversification is the competent distribution of capital across several assets in order to optimize income and risk.
• A broker is an intermediary between the company offering financial assets and the investor.
• A brokerage account is a special account opened with a broker for investing.
• An individual investment account (IIA) is an account offered by brokers for trading stocks, bonds and other financial assets with a number of advantages and restrictions for the investor. Read more about IIS and how it can be useful in the article.

The expanded investor dictionary can be found on the page.

The lack of a knowledge base is not a direct obstacle to activity, but understanding the processes significantly increases the likelihood of success and reduces the percentage of errors.

For anyone who wants to dive deeply into the world of investment, I can recommend the literature that I started with.

Books about investing for beginners

There are many books about investing for beginners. Below I will list the top 5 books for the novice investor:

• Robert Kiyosaki “Rich Dad Poor Dad” – the basics of investing for beginners, part 2 of this author’s “Investing Guide”,
• Napoleon Hill “Think and Grow Rich” – we help change your attitude towards money,
• Robert Hagstrom on Warren Buffett
• Benjamin Graham in The Intelligent Investor tackles more complex investing topics.

After reading these books, your thinking will begin to work towards investing. You will understand what mistakes you make in your monthly spending and change your approach to money in general.

The blog published a whole article “the best books on investments”, which contains interesting books that are worth the attention of a novice investor.

I recommend reading: PAMM accounts Amarkets, review 2018

Investments for beginners should start with setting goals.

Step 2. Investor goals.

In other words, you need to answer the question: why should you invest ? For some, investments are an opportunity to acquire passive income, which will give them the long-awaited freedom to do their favorite things or relax with their family. Some people have specifically material goals. For example, buying an expensive item, real estate, education. In any case, specificity is important - this will help you not to quit at the first difficulties.

Take a piece of paper and write down your ultimate goal. For example, in 5 years (60 months) you can save up for an apartment worth 2 million rubles. Using simple arithmetic, we find that without investments, in order to save for an apartment, we need to save 33,333 rubles monthly. for 60 months. (RUB 2,000,000/60 months).

If you invest money allocated for housing at 3% per month. (36% per annum) with capitalization of accrued interest, then it will be possible to save for an apartment in less than 3 years (35 months).

Don't be alarmed if the initial amounts and your desires are very different. For novice investors, capitalization of earned amounts without changing the initial terms will help reduce the amount of monthly savings by more than 2 times - for example, to 15,000 rubles. without increasing risks. Even in this case, you will save up for an apartment faster – in 54 months.

But there is no need to rejoice ahead of time; I specifically included an additional 6 months in the calculation, because... 5 years is a long time and it can be difficult to consistently maintain a return of 30-40% per annum.

I advise you to factor in a little more time or money. This way you won’t be nervous if you fall a little behind the plan and will save yourself from unnecessary adventures in order to quickly catch up with the target in terms of profitability.

Having decided on the ultimate goal, we move on to developing a strategy and selecting assets for investment.

Investing in content sites.

This method of investing is similar to investing in a business, but with a simpler purchasing and management process. Again, there is no need to create and promote a website. You can simply buy a ready-made project.

The website itself is more of a tool than an asset. The real asset is the audience that comes to this project every day. The site owner makes profit through advertising, affiliate programs and other sources of monetization.

To purchase a site, you can use the exchange. One of the most popular exchanges in RuNet is Telderi.ru. In the list of sites for sale, you can see all the information on the projects: audience size, profitability, development dynamics, payback period, etc.

The transaction is protected and takes place according to the rules of the auction, where the site goes to the buyer who offers the highest price. For simplicity you can give 4 points .

Typically, normal websites are sold at a price equal to the income from it for 12 months. That is, if a project brings in 20,000 rubles per month, then the fair price for it will be 240,000 rubles.

But in most cases, on such sites, monetization does not work 100%. Thus, after “tweaking” monetization, it will be possible to recoup the investment in 6-10 months. 7 points for profitability.

If the site is made with high quality and was promoted only by “white” methods, then such a contribution can be called reliable. Of course, if you want the project to bring you profit for many more years, then you need to do at least minimal work on it. But the project will be enough for a year or two without additional investments. 8 points for reliability.

In general, some sites are sold very cheaply. You can find it for 500 rubles. But such sites should not be of interest to investors.

You can buy one expensive and high-quality site, or several average ones. Therefore, I do not recommend starting with too small amounts. 6 points for the entry threshold .

If the project ceases to be of interest to you or you need money, you can always sell it on the same exchange. For this I give 4 points .

When you buy a site that will bring you passive income, you can make a profit without working on it at all for a year or two. But, over time, without administration and updates, the project will lose its audience, bringing less and less income. I'll give it 4 points .

How to become an investor?

Anyone can try their luck in investing, but not everyone is destined to become successful investors. First of all, an investor is an analyst, strategist, forecaster and financier rolled into one; he must:

• be quite knowledgeable in the area you have chosen to invest in;
• navigate the pricing of this market segment (if we are talking about speculative investment);
• be able to analyze the situation, have the qualities of a forecaster and strategist;
• have specific goals, clearly understand why he is doing this business and what is expected from him.

In addition to the above, it is simply necessary to have funds for investment, and this should not be your monthly salary, on which you are going to live as a family of five. You must create your individual investment account from available funds that you can afford to lose. And, of course, don’t put all your eggs in one basket - remember to diversify your funds, that is, distribute capital across several projects, or better yet, across different types of investment. Investing is an excellent opportunity for almost passive income, in which money makes money itself. Visit any investor blog, and you will understand that it is not enough to find the answer to the question “how to become an investor”; it is important to understand that before rushing into battle, you need to be sufficiently savvy and aware of what you are doing, soberly assessing the risks.

Author Ganesa K.

A professional investor with 5 years of experience working with various financial instruments, runs his own blog and advises investors. Own effective methods and information support for investments.