Advantages of attracting investments. Pros and cons of investing Investment pros and cons

At the initial stage, external investment gives companies two main advantages:

· capital that allows you to move to the next stage of development;

· improve the quality of management, in particular by strengthening discipline and adjusting strategy.

Risk and reward

Investments are characterized, among other things, by two interrelated parameters: risk and profitability (return). Generally, the higher the risk of an investment, the higher its expected return should be. The CAPM model is often used to describe the relationship between risk and reward. The magnitude of investment risk shows the probability of loss of investments and income from them. The amount of total integral risk consists of seven types of risk: legislative, political, social, economic, financial, criminal, environmental. At the same time, the average Russian risk is taken as one, and the real indicators of the regions may deviate. .

Sources of investment and their consumers

The concept of “investment” is broadly interpreted as an investment in the future. Investments- these are any funds designed to serve the satisfaction of future needs, for which they are diverted from current use and invested in a specific business that promises to bring economic benefit or social benefits.
The transformation of economic resources into active factors of production has a certain duration in time, i.e. Between the involvement of resources in production and their direct participation as an agent, a factor in the production process, a certain time passes, necessary to transform the original resource into a factor. To build, for example, a production building and install production equipment in it, time and money are needed.
Thus, producers are forced to first acquire or create the necessary resources themselves, make expenses, and divert funds for this in order to create factors of production. Only then do they reimburse, compensate for these costs through the sale of a product produced using these factors. Consequently, in economics it is inevitable to first invest money in a business, create conditions and prerequisites for production processes, and only then obtain the desired result. Thus, investments are investments in fixed capital (fixed means of production), inventories, reserves, as well as in other economic objects and processes that require the diversion of material and monetary resources for a long time.
The proposed definition of the concept of “investment” does not exhaust the fullness and depth of this fundamental economic category. Note that the concept of “capital investments” (or “capital investments” for short), widely used in economic literature, is interpreted more narrowly than the concept of “investment”. True to its name investment There are investments only in fixed capital, while investments in other types of economic resources, such as information resources, securities, spiritual potential, material reserves, are not called investments or are done with a reservation.
Investments have a branched structure.
In accordance with the division of capital into physical and monetary investments, it is also customary to divide into investments in material And monetary forms. Investments in material form are industrial and non-productive facilities under construction, equipment and machinery aimed at replacing or expanding the technical fleet, increasing inventories and others. investment goods, designed to develop and increase the main assets of the economy, its material and technical base. Investments in cash, as the name implies, are money capital, aimed at creating tangible investments, ensuring the production of investment goods. In contrast to the centralized economy, where there was a shortage of investment goods and the availability of investments in cash was not enough to solve the problems of expanding and updating production, creating the necessary infrastructure, and forming material reserves, in a market economy the main concern is finding cash investments, which can then be easily converted into an affordable investment product.
Gross Investment production is an investment product aimed at maintaining and increasing fixed capital (fixed assets) and inventories. Gross investment consists of two components, one of them, called depreciation, represents the investment resources necessary for the replacement of fixed assets, their repair, restoration to the original level prior to production use. The second component is net investment- there are investments of capital with the aim of increasing, building up fixed assets through the construction of buildings and structures, production and installation of new, additional equipment, modernization of existing production facilities.
Along with investments in the sectors of material production, a significant part of them is directed to the socio-cultural sphere, to the sectors of science, culture, education, healthcare, physical culture and sports, computer science, environmental protection, for the construction of new facilities in these sectors, and the improvement of the technology used in them and technology, implementation of innovations. In the scientific and educational literature of recent years, much has been said about investments in people, V human capital. This is a special type of investment, mainly in education and health care, aimed at creating funds that ensure the development and spiritual improvement of the individual, strengthening people's health, prolonging life, expanding opportunities for a person's creative participation in work and increasing its impact.
Real investment- is an investment in sectors of the economy and types of economic activity that provide an increase in real capital, i.e. increase in means of production, material assets, reserves, information and intellectual resources.
Financial investments represent investments in shares, bonds, bills and other securities and financial instruments. Such investments in themselves do not provide an increase in real material capital, but are capable of generating profit, including speculative profit, due to changes in the price of securities over time. The purchase of securities, such as shares, does not create real, physical capital. But if the money received from the sale of shares is invested by the company that sold them in production, construction, or the purchase of equipment, then financial investments become monetary investments in real capital and thereby turn into real investments. Therefore, one should distinguish between financial investments, which are investments for the purpose of obtaining speculative profit through the purchase and sale of securities, and financial investments, which turn into monetary and real, physical capital. Direct financial investments are monetary investments in the authorized capital of an economic entity, in shares of a joint-stock company, made with the aim of receiving both income in the form of dividends and the rights to participate in the management of the joint-stock company. Controlling are called direct investments that ensure ownership controlling stake shares, i.e. more than half the voting power of a company, while an investment that represents ownership of fewer shares is called non-controlling.
Financial investments include portfolio investments. Persons who invest money in securities acquire, in order to increase profitability and reduce risk, a set of various types of securities called portfolio. Hence the name of such investments.
High risk investments are called risky or venture capital. Most often, large risky investments are associated with investments in innovative projects and new areas of activity. To reduce the risk of each investor of such capital, the capitals of many investors are combined, forming venture capital fund.
As mentioned above, investments in general are investments of money and resources for long periods. But these terms can be very different, and therefore in economic theory and practice, long-term and short-term investments are distinguished. There is no clear dividing line between them, but conditional boundaries of separation can be named.

Short term investments are considered for a period of about a month or several months. This means that during this period the invested funds are diverted, after which they become a factor of production and begin to produce returns, generate income and profit. Long-term investments involve investing funds for a year or several years, sometimes decades. For example, investments in the human factor and in education can give a person a return only after completing the training and practical application of the acquired knowledge, which takes many years.
The type of investment is determined by the investor of capital, called investor. The term “investor” is most often used in relation to individuals, organizations, and states that invest capital not only in their own business, but also in “someone else’s” business. However, after investing funds, “someone else’s” business becomes at least partially “our own.”
Depending on who invests capital, investments are made, public, private, and foreign investments are distinguished. Public investment represent public funds invested in economic development, diverted from current government consumption in order to ensure the maintenance of production, the social sphere and economic growth. Investments from the state federal budget, budgets of the constituent entities of the Federation and local budgets are called budget, while investments from other sources are called off-budget. Private investment- These are non-state investments of funds owned by companies, entrepreneurs, and the population. Foreign called investments coming from abroad, they can be both public and private.
Investments are closely related to savings, savings states, enterprises, population. For the state, it is precisely accumulations, i.e. the part of national income not spent on current consumption is the main domestic investment source. Enterprises and companies use savings from profits in the form of investment funds. The connection between industrial investments and savings of the population and households is more difficult to discern. If for the state budget savings that turn into investments are a heavy but necessary burden, and for an organization or company, production investments from profits are an indispensable condition for the existence and development of production, then the monetary savings of the population are not directly investments: they can be used for such purposes , for example, the bank where these savings are kept. After the population's funds reach V banks become deposits, the new manager has the right to use them as financial and real investments. Thus, household savings can also become active productive investments, even if this was not the intention of their original owner.
As a result, we come to the conclusion that the accumulations and savings of all economic entities in one way or another turn into investments. These concepts often merge, which gives grounds for individual economic theorists to equate investment and savings.
Let us highlight three main economic entities - consumers of investment resources. This is the state represented by government bodies, enterprises and entrepreneurs, as well as the population, represented by a set of households.
To the State in the person of state administration bodies and local self-government, investments are necessary for investing in the socio-cultural sphere, science, defense, government infrastructure, environmental protection, for the development of foreign economic relations, housing, civil construction, ensuring internal security, supporting unprofitable or low-profit industries, promoting the development of science and technology, implementation of government programs and projects.
To attract the necessary investments, the state uses internal and external sources. The main internal source is income, funds from the state and regional (local) budgets, received through taxation of enterprises, entrepreneurs, the population, and payments collected for public services. Along with taxes, the state resorts to other types of taxation, targeted fees, and mandatory payments. Profits from state foreign economic activity are also used.
A significant source of the formation of public investment resources is sale of bonds government loans with their subsequent redemption (repayment) and payment of interest on bonds. The state can resort to other methods of borrowing, receive internal loans from the Central Bank, use income from the sale of various types of securities, including lottery tickets. The state attracts investment from external sources in the form of loans, foreign aid.
In a market economy, the state and its budget are largely freed from the responsibility of being a source of capital investment in production, which is typical for a centrally controlled economy, but the burden associated with investments in the social sphere increases, and the burden of investments required to ensure economic and military security. At the same time, it becomes more difficult to ensure the forced receipt of taxes, payments, and contributions to the state treasury, and it becomes even more difficult to allocate part of these funds for investment in the future. This is one of the reasons for the severe state investment crisis in Russia during the 90s. XX century
The state's attraction of foreign capital, which instead of investment becomes a source of covering other budget expenses and is spent on current consumption, has the inevitable consequence of an increase in external debt. If funds received from abroad are not invested in production and do not ensure its growth, such foreign capital only leads to the enslavement of the state and its economy. State investment policy should be based on attracting foreign investment in the real sector of the economy, and not as a means for the next one to be eaten and stolen into the pockets of skilled businessmen in alliance with government officials.

Depending on a number of characteristics, investments are divided into several broad groups. The first indicator is ownership, that is, investment in someone else’s project or in your own. If you have the experience, knowledge and strength to solve various problems, then you can try investing in your business. The disadvantages of this method are high risk and the need for significant initial financial resources. Advantages: independence, opportunity for self-realization, high profits. Other investment options to consider:

• investing financial resources in the promotion of new projects. Startups are capable of generating good profits;
• investments in working projects. An existing business is more stable and predictable. Therefore, the investor can be confident of receiving a certain share of the income;
• profile investments. This option involves purchasing the organization’s securities;
• direct investments. This type of investment is aimed at investing money in the assets of a company.

Negative sides

Risk is one of the main disadvantages of business investment. An investor must understand that there is always a possibility of losing the money invested. Therefore, it is necessary to have in-depth knowledge of the specifics of the work and take into account the features of the chosen direction.

The disadvantages of investing in business are uneven profit generation, limited control over the situation (exception is your own business). In addition, in some cases, investors are faced with corruption, sanctions, regulatory authorities, and restrictions at the legislative level.

Methods for attracting investments

It is difficult to imagine modern business without investment. However, the search for investors interested in investing in the business may take a long time. To establish this process, you need to use a number of simple but effective rules. We are talking about revealing the prospects and profitability of your project, maintaining its performance. Another important point is the provision of all necessary documentation. The idea is good, but investors need to check the documents, see the matter in graphs, tables, and figures. Taking into account the noted rules, there is no doubt that there will definitely be individuals and legal entities interested in investing.

Investment is investing money for a long period in various financial instruments. The main goal is to make a profit in the future. If there is no expectation of income from a financial transaction, it is not an investment. However, to achieve the expected result, effective management will be required in order to protect your investments from risks as much as possible. Money tends to depreciate, since annually inflation “eats” approximately 10-15% of the initial amount. not only saves money, but also increases it.

Investing: essence and features

Investing is one of the most profitable ways to increase capital. Sometimes this concept is confused with others related to economic activity. There is a fine line between the terms "speculation" and "investment". The main criterion of difference is the investment period. Speculation - making a profit through purchase and subsequent resale. Such investments are short-term and profit is formed due to the difference in cost.

If we consider lending and investing in the context of business financing, the first means the transfer of funds with the condition that they will be returned after a specific period at a certain percentage. In the event of bankruptcy, obligations to creditors are initially repaid. As for financing, unlike investing, its goal is not to generate income.

We invested our money in these funds:

Investing in real estate: pros and cons

It is considered reliable and profitable. The demand for housing is constantly growing, as are prices. In addition, real estate rental is always relevant. However, not everything is as simple as it initially seems. The advantage of such deposits is that real estate cannot completely depreciate, like, for example, shares of a company. In any case, apartments will be, if not bought, then rented, so such investments in a crisis can generate at least some income. You can buy real estate at a minimum price by purchasing it before the facility is put into operation, in other words, during the construction period.

The disadvantages include low liquidity. If in the future you need to urgently release funds, then the selected investment option is not suitable. Buying and selling real estate will cost a lot of time searching for suitable options and completing various documentation - this is one of the main disadvantages of such investments. In addition, investment requires a lot of money. In crisis conditions, real estate prices fall and may be unstable. The negative point is that the investor will incur ongoing maintenance costs.

Investing in shares: pros and cons

This type of investment requires careful market analysis, because the price of shares falls quickly and rises very slowly. During the period of surges in the financial crisis, but also abruptly go bankrupt. An investor may lose part of his capital, however, many, on the contrary, buy shares at this time in the hope of a subsequent rise in prices. The risks are significant, but the expected profit will be considerable.

The advantages of this type of investment include accessibility. With many brokers you can open a deposit with an amount of $500. But on foreign sites you will need at least several thousand dollars. High liquidity of investments is also a huge plus. Shares of large companies can be sold instantly. Securities trading takes place online, which is very convenient, since an immediate response to changes in the stock market will help avoid a collapse. At the same time, you can make money on shares in two ways: speculatively - on exchange rate fluctuations and on traditional dividends.

The main disadvantage is that shares can instantly lose their value if the company goes bankrupt. In times of crisis, their prices also fall rapidly. And the restoration of value takes more than one year. It is not worth one company (sometimes in the securities of one industry), but building an investment portfolio requires a lot of money. When trading small amounts, you cannot do without brokers. This is convenient, but comes with additional costs. When investing in securities, economic and political factors are taken into account. Owners of common shares may be left without dividends when the company has a loss year and its profits are used for development. It is difficult for an inexperienced person to navigate and evaluate the benefits of a financial transaction, see possible risks and choose a specific company - this is not an easy task.

Investing in your own business: pros and cons

Investing in business in order to receive profits from this activity in the future. You can earn money in several ways. An investor receives active income when he is also the head of a business. If the company is managed by hired personnel, then the income will be passive. You can invest in a new business or an existing business. Financing can be complete or the investor only has a share.

The advantages include a variety of directions. A business is an asset that shows what the funds are invested in and how they generate income. An investor can independently carry out entrepreneurial activities, influencing investments and managing them personally. An undoubted advantage is that the profitability of such investments is not limited and, depending on the type of activity, can easily be 100%.

The main disadvantage of this investment is the high risk of losing invested funds. With shared participation in a business, disagreements may arise between investors, as a result of which one of the partners may be forced out of the business. When investing in your own business, you need to be prepared for regular or periodic additions. Earnings from your own business do not come immediately; sometimes it takes several months, and sometimes even years. The investor will have to adapt to market conditions and control his business to avoid bankruptcy. Another disadvantage of such investments is dependence on the state.

Investing in Jewelry: Pros and Cons

The cost of precious metals and stones is constantly growing, so the chosen investment method is very profitable. It is worth knowing that the price of either bullion will be more expensive than gold jewelry, since the former uses metal of the highest standard, and the latter uses alloys that reduce the quality.

The main advantage of investing is the high growth rate of jewelry. The most profitable option for the short-term period is considered to be deposits in an impersonal metal account.

The downside is that if the bank goes bankrupt, the investor will lose money. The main disadvantage of purchasing specifically jewelry is the inclusion of the jeweler’s work in its price. An exception is antiques, vintage or exclusive items. When investing in gold bars, the downside is that you will need to pay about 18% tax to the state. The sale price in a bank (like any currency) will be higher than the purchase price, therefore, in order to receive real income, it will take a long time or a sharp rise in value. It is not recommended to store jewelry at home; it is better to use a safe deposit box, the maintenance of which costs money.

Investing in PAMM accounts: pros and cons

This is another way of investing, as a result of which the investor will receive passive income. - transfer of funds into trust management for traders to make a profit as a result of speculative transactions with currency on PAMM services. Now this is a very popular trend on the Internet, which appeared relatively recently, about ten years ago.

The main advantage of such investments is accessibility. You don't need a lot of capital; a hundred dollars will be enough to get started. The main driving force for investors is profitability. A completely normal level is up to 50% per annum and above. And if you use risky strategies, profits can be made very quickly. This method of investing is very convenient, since you can track the market situation and perform various transactions online. The PAMM platform acts as a guarantor for settlements. Investors do not need to spend time studying literature and honing their skills; traders do all this. An investment portfolio is created by investing funds in various PAMM accounts, thereby minimizing the possibility of losing your money.

The main disadvantage is high risks. To control the actions of a trader, an investor must understand at least a little about the Forex market. This method of investing is not suitable for gambling people. In this case, a “sober” mind and prudence will be required. The disadvantages include the commission for trader services, which in case of profit can be up to 70%. There are a lot of scammers on the Internet, so you need to be careful.

Investing in mutual funds: pros and cons

Mutual funds are an organization that receives funds from investors and invests them in securities. The value is constantly growing due to an increase in the fund's capital and the owner of the share receives a profit (it can be fixed if the share is sold).

The positive thing is that money management is carried out by professionals, because not everyone can figure it out on their own. Shares can be used as collateral, they are also inherited. A plus for many is the low threshold for entry into mutual funds.

The downside is that the funds do not guarantee returns. This is a long-term investment, but a project can be profitable for a couple of years, and the next year it can be negative, covering the amount of all previous income. A profit tax is taken in case of sale of a share. The investor incurs additional costs, such as a commission for entering an investment fund.

Investing in Options: Pros and Cons

Like any other investment option, binary options trading has advantages and disadvantages. This is a type of exchange trading, as a result of which profit is generated by the movement of the price of assets (currency, goods, shares) in financial markets.

The idea of ​​options trading is a forecast of the fall and rise in value of an exchange asset, while traders do not see auxiliary graphic elements that would help them get maximum profit. Binary options have appeared on the Russian market recently and there is not enough information about them in Russian. The platforms do not provide demo accounts, so beginners have nothing to practice on.

The positive aspects of such investment include the fact that the cost of options is lower than the price of shares. An undoubted advantage is that the investor can predict possible risks and profits in advance. High profitability is another advantage. Up to 85% of investments can sometimes be earned within a day. Trading takes place online, and it is convenient. You can start investing with twenty-five dollars.

The disadvantages of such investments are high risks. All your money can be lost in one moment.

Investing in startups: pros and cons

A relatively new concept in the world of high-yield investments. It means a young business project created to make a profit after its development. A distinctive feature of startups is the originality of the idea. A business that is created from scratch, but already has analogues, does not belong to this concept.

The advantage is that startup offers are available to everyone on various online investment platforms. Very often, the directions in which projects are developed do not depend on the real economy. In the case where several investors participate in a startup, the minimum investment is a small amount and is available to many. You can receive passive income from a startup or be an active participant in the development of such a business.

The main disadvantage is the high risk of going broke and losing all investments or not making enough profit. Creating and developing a startup is a long process that requires a lot of effort and work, so income appears at least after a few months.

Investing in HYIPs: pros and cons

HYIPs are projects from which an investor receives income from funds invested by other investors. In other words, these are financial pyramids.

The main advantage of investing in such highly profitable projects is logical - high profitability. In one day it can average 1-3% of net profit. When investing in the early stages of project development, you can really make a good profit. The deposit amount should be such that the investor is not afraid to say goodbye. , you need to constantly monitor the project so as not to miss the moment of its peak development.

The main disadvantages are the short-term existence. In general, HYIPs do not “live” longer than one year, with the rare exception of individual large specimens. Another negative aspect is the loss of the entire invested amount, in the event of a sudden change. It is quite difficult to predict the development of funds, however, experienced investors manage to do this.

Investing in self-development: pros and cons

Such investments consist of developing skills and knowledge in one or more areas and constantly increasing them. You can attend trainings, study at business schools or educational institutions, and read relevant literature. The main thing is to choose the right direction, which will be really interesting to a person and in the future, due to personal knowledge, he will be able to make a profit. True professionals in their field are highly valued in the labor market, so such investments are justified.

The disadvantages include regular. You will constantly have to improve your skills, improve and gain new knowledge in your chosen industry. You need to spend a lot of time on self-development.

In conclusion, it is quite possible to make huge profits through investing. The main thing is to choose where to invest your money. Among the variety of offers, it is sometimes difficult to determine the most profitable one. Before investing, you need to weigh all possible risks, read in detail and study information about the object of investment activity. You should not make hasty conclusions and actions. It is recommended to consult with experienced people, because in any business there are professionals who can help you figure out all the intricacies, even if not for free, but this will help you assess possible risks and become a more savvy investor in your chosen area.

Investments on the Internet Today it is beginning to gain more and more popularity. And more and more people, in addition to spending time on the Internet playing games, watching movies and hanging out on social networks, are starting to look for ways to earn money and invest in order to create a good one for themselves.

In this article we will analyze the features of investing on the Internet, its main advantages and disadvantages, as well as the main options for online investing.

Features of investing on the Internet

No matter how strange it may be, the Internet, in addition to entertainment and information, can give you much more than you think. This:

• firstly, a decent one, which will not depend on your participation;
• and secondly, confidence in the future and more free time that you can spend at your own discretion.

In order for you to have the opportunity not to work tomorrow, you need to work well today. Invest your time, labor and money not to earn income now, but to earn a decent income over time. Here, all your financial and physical actions must be carefully thought out, clear and consistent, and most importantly, competent.

It must always be remembered that there is risk everywhere, even with... And also, without effort you will not get a good income. All advertisements that promise high income without the slightest effort are nothing but a scam.

Pros and cons of investing on the Internet

Like any financial instrument, the Internet has its advantages and disadvantages.

On to the pros relate:

• the opportunity to earn money without leaving home and ease of management, as well as a flexible work schedule;
• high profitability and low investment;
• the ability to withdraw funds in any amount and at any time.

The main disadvantage investing on the Internet is the risk of losing your capital, which is associated with the ineffective activities of the investment company, hacker attacks, bankruptcy of companies, unforeseen circumstances and mistakes of the investor himself.

Basic requirements for a novice investor

The goal of any investor is to achieve the minimum loss of his capital. And this requires mandatory preparation, and not only the required amount, but also special knowledge and skills.

1. Internet access

This is the very first and necessary thing that a beginner should have when investing online. In addition to accessing the Internet itself, investors will also need payment systems through which they will carry out their financial transactions.

1. Basic economic knowledge

Never invest your money until you have at least learned the basics of investing. Unfortunately, investing is not taught either in school or in college. Therefore, you will have to educate yourself. You can start studying with thematic blogs and forums, and then move on to specialized literature.

1. Psychological stability

What, what, but the right psychological attitude and nerves of steel are what you will need most of all. You must be prepared for anything: the fact that you won’t get a profit today, or that you may not get it at all.

Make sure that greed and fear do not guide your actions (this way you will only lose your capital). Every action must be based on cold and sober calculation. Under all circumstances, you must maintain sober composure.

You should always be prepared to lose your capital. This is an integral part of investing. There is not a single investor who does not lose their money. Treat this psychologically and philosophically: WITH EVERY LOSS OF YOUR CAPITAL, YOU ONLY BECOME SMARTER, WISE AND MORE EXPERIENCED. THIS IS AN INVESTMENT IN A FUTURE WHERE YOU WILL NO LONGER MAKE MISTAKES LIKE THIS!!! The main thing is to draw the right conclusions.

1. Assessing your capabilities

You must take a sober look at your investment object. And understand that you will not get more than your financial instrument can provide. You must determine in advance your investment goals and for how long you are willing to invest your capital.

Ways to invest on the Internet

Below are the main and most reliable ways to invest on the Internet. From them you can choose the most suitable one for yourself.

Method 1. Forex trading

Many people have heard about Forex, but few people know how this investment instrument works.

Forex is an international foreign exchange market where traders make money on differences in exchange rates.

Anyone who has time, money and desire can do it. Profit has no “ceiling”; it can be 5% or 100-150%. It's better to start making money with the help of a broker. who will explain everything to you, tell you and give you advice.

Method 2. PAMM accounts

When investing in PAMM accounts, the investor transfers his capital in trust to a manager, who is used to conduct transactions on various exchanges. In other words, this is when an investor transfers his funds to an experienced trader for financial transactions. for which he pays him a pre-agreed remuneration.

The capital transferred into trust management can be used in various markets, both on Forex and on the Stock market and other markets.

With this method of investing, the investor himself must simply choose a manager wisely. no further action will be required from the investor. He can calmly sit and wait until profits start flowing into his account.

Method 3. Trading binary options

Binary options is an investment instrument where transactions are made on an “all or nothing” basis. Here, possible profits and losses are known in advance and are agreed upon when concluding a transaction.

It is distinguished by its simplicity and clarity. doesn't matter here. how the price will change. the investor makes a profit. which was discussed in advance.

The liquidity of binary options is at a high level and it is based on some financial asset: currency, securities, precious metals, and so on. this allows investors to diversify risks.

The disadvantage here is that you need to put in a lot of effort and master a huge amount of knowledge.

And the main advantage is that even minor fluctuations can bring significant profits, and here you can develop, apply and test your trading strategies.

Method 4. Investing in shares on the Stock Market

Every investor who decides to invest in a company's shares (even if they are called "blue chips") must understand that they can only generate income if invested long-term.

There are two ways:

1. Speculative trading. They buy cheaper and sell more expensive. There are increased risks here due to unstable quotes and exchange rate volatility.
2. In the form of dividends. A Shareholders of such shares are paid income once a year. You must first find out which stocks would be more profitable to invest in.

To start trading shares, you first need to obtain an electronic digital signature, and only on a website or a special program. which is specifically provided by the broker.

Benefits The thing about online investing in stocks is that you can make good money on speculation.

And the disadvantage– this is market instability and the need to pay taxes (13% for individuals). And yet, it is almost impossible to withdraw profits to electronic wallets.

Method 5. Investment in gold

You can even invest in gold through WebMoney. The account currency is measured in wmg. When buying gold in the form of wmg, several methods are used: Internet exchangers, automatic exchanger wm.exchanger.ru, transferring money to the account by transfer. an investor can exchange wmg for bullion.

When investing in gold, you should always keep in mind that purchasing it in physical form is subject to tax, unlike the electronic method of investing.

Method 6. Investments in precious metals in the form of compulsory medical insurance

On the Internet it is possible in the form of compulsory medical insurance.

Unallocated metal accounts (OMS) opened virtually or in a bank by depositing precious metals into such accounts, which are converted into monetary units.

Compulsory medical insurance is not subject to taxes, and is opened for a period of 12 months, after which it can be extended. Profit depends on changes in the cost of precious metals. Since the price of precious metals rarely decreases, they can generate significant income in the long term.

Method 7. Investing in websites

Nowadays it has become very popular to invest in websites that are either created independently or purchased ready-made.

The site will start making a profit only after the site becomes very popular. And a lot of time, effort and money will be invested in it. If the site is not constantly developed, it will very soon lose visitors and stop generating income.

Method 8. Investing in startups

Investing in startups does not guarantee profit. A startup can either make a profit, or simply break even, or go bankrupt. The amount of funds invested in startups is unlimited. The amount of investment should be based on an objective assessment of the startup itself and its team.

Investing in new resources is much more risky than in already developing projects, but if the outcome is favorable, they can bring much more tangible profits. And it is better to choose those projects in which the investor himself develops.

Once the startup is selected, it will be necessary to discuss with its owner the form of investment and the method of generating income.

Method 9. Online store

Today on the Internet you can trade anything, from goods and services to various information and websites.

Is it true. opening a store on the Internet requires large investments or attracting investors who will have to pay dividends.

Method 10. Investing in domains

Due to the huge number of sites and the fact that all the beautiful domains are already taken, we started buying/selling domain names. Let’s say that if today you buy a domain for 1,000 rubles, then after some time you will be able to sell it for 20,000 rubles.

Domains can only be purchased at online auctions or from their direct owners. Here you will also need to manage to sell at a better price.

Method 11.Issuing money to an online lending service

Here the investor must choose the service with the most suitable conditions for himself. He himself cannot dictate them. After which he transfers the money to the service on credit with an interest rate of up to 25% and for a period of 6 months to a year (most often).

Method 12. Private online lending

You can lend on the Internet either directly or using the loan exchange offered by the WebMoney electronic money service.

The investor studies the list of borrowers who place their applications on the exchange and selects those that are suitable for themselves. To make a good profit here, an investor must spend a lot of time working and minimizing risk.

Method 13. Investments in HYIPs

HYIP translated into Russian means an investment program that brings high income. In simple words, this is a project that promises income. And therefore, there is a high level of risk here.

In the understanding of many, HYIPs are a fraudulent scheme. Some, however, manage to earn a decent amount of money here.

Something like that. Above we discussed the basics of investing on the Internet and the main methods of investing, although in fact there are many more of them. You just need to carefully study all possible methods and choose the most suitable one for yourself. It is also very important to be able to filter them so as not to run into scammers.

Also, you can express your opinion about the article and about the site itself in the comments, point out the shortcomings of this resource.

The MyRublik site will be very grateful to you.

Unfortunately, very few foreign assets are available in Russia. And those that exist have significant drawbacks in the form of high fees or very limited choice. Therefore, the question arises of withdrawing your savings to foreign markets, where the choice of financial instruments is much greater. However, in addition to the obvious advantages of foreign investment, there are also disadvantages. Today’s article will be about the pros and cons of investing abroad.

Advantages of foreign investment

High credit ratings of developed countries

A credit rating is a measure of the creditworthiness of a company, region or country. A high credit rating means that a company or country is highly likely to meet all of its obligations. A low rating indicates that the probability of not fulfilling its obligations (for example, declaring a default) is high. The highest credit rating is AAA, the lowest is CCC.

Currently Russia has the following credit rating:

• Standard & Poor's: BBB-, Below Average Quality Liabilities
• Moody's: Ba1, Risky liabilities with speculative features
• Fitch: BBB-, Below Average Quality Liabilities

But most developed countries in the world have higher credit ratings:

• USA - AAA
• Japan - AAA
• Britain - AAA
• China - AA
• Australia - AAA

Thus, the withdrawal of capital to countries with higher credit ratings helps reduce investment risks.

High protection of investor capital

In foreign countries, the investor capital protection system is more developed and provides higher protection. In the US, bank deposit insurance is limited to $250,000. Brokerage accounts are insured by SIPC (Securities Investor Protection Corporation) in the amount of $500,000 (including $250,000 for cash). In European countries, insurance for bank accounts is up to 100,000 euros, for brokerage accounts - up to 20,000 euros.

Investments in Russian insurance companies, for example, in savings or investment life insurance, are also not protected in any way in case of bankruptcy of the company. The only hope is reinsurance companies. Protection of savings in companies that work with Russians is 90-100%, depending on where the company is registered and what protection scheme is applied in that jurisdiction.

Development of the financial industry

The modern Moscow Exchange (formerly MICEX) began its work relatively recently - in 1992. The three largest stock exchanges in the world began to operate much earlier: London - since 1801, New York - since 1792, Tokyo - since 1878. Foreign stock markets have a much longer history.

The same applies to financial instruments. For example, the oldest mutual fund in the United States, Massachusets Investors Trust, which still exists today, began operations in 1924. ETFs were introduced in 1993. In Russia, the first analogues of mutual funds - mutual funds - appeared only in 1998, foreign ETFs - in 2013.

The foreign financial industry has a longer history of existence, during which it has been able to accumulate extensive experience, develop legislation and regulate the industry. For example, in Russian legislation there is still no such thing as an exchange-traded fund (ETF), so all ETFs on the Moscow Exchange are issued in other countries.

Large selection of financial instruments

The degree of development of the financial industry also affected the number of available financial instruments. Only about 300 shares of Russian companies and about 1,000 bonds are traded on the Moscow Exchange. About 500 more American shares are traded on the St. Petersburg Stock Exchange. The number of Russian mutual funds for 2018 is 1,300, of which only 287 are open. The value of assets under management of all mutual funds is 763 billion rubles. The number of ETFs on the Moscow Exchange is only 14.

In the USA, the number of companies whose shares are traded on the stock exchange is approximately 5,000. The capitalization of the US stock market is 32,120,702 million dollars. In total, more than 40,000 shares are traded in the world, the total capitalization of the world's stock markets is 79.214 trillion. Doll.

There are 9,000 mutual funds in the United States, with $19 trillion invested in them. dollars. The number of mutual funds in the world is about 114,000. The number of ETFs in the USA is 1,700, around the world about 4,700, with 3.42 trillion invested in them. Doll.

The capitalization of the Russian stock market is 623,424 million dollars, Japan 6,222,825, France 2,749,314. The share of the Russian stock market in the global capitalization does not exceed 2%.

Market capitalization map of stock markets around the world, indexmundi.com

Thus, the Russian stock market occupies a very small place in the world, while foreign markets provide a much larger selection of financial instruments. Unlike Russian brokers, which in most cases provide access only to Russian exchanges, foreign companies allow you to buy financial instruments on dozens of exchanges in different countries from one account. Therefore, most foreign financial instruments will be available without any problems.

Available asset classes through funds

The limited number of funds in Russia affects the availability of foreign assets. Through Russian funds you can invest only in a very limited list of foreign assets. Through foreign funds the number of available assets is much larger.

Table of availability of foreign assets through Russian and foreign funds

Low commissions of foreign funds

Investors in foreign funds incur fewer costs. With trillions and billions of dollars invested in foreign funds, management companies can charge lower fees. The amount of assets under management of Russian management companies is much smaller, so they are forced to take a larger fee as a percentage of the NAV in order to earn a profit. 0.1% on a billion dollars is more than 1% on a million.

Average fund fees

The annual remuneration of management companies in mutual funds is on average 2-5%, in foreign mutual funds 1-2%. Commissions for ETFs available in Russia are 0.5-0.9%. Commissions in most foreign ETFs are tenths or hundredths of a percent and do not exceed 0.5%. Since the largest funds are located in the United States, American index ETFs have the lowest fees. The list of ETFs with the lowest fees can be seen below.

ETFs with the Lowest Fees

There are funds that pay dividends

Almost all Russian funds do not pay dividends. All dividends and coupons that the fund receives are reinvested within the fund. Thus, in order to receive income, the investor has no choice but to sell part of the securities, or to form a portfolio of stocks and bonds himself.

Unlike Russian ones, foreign funds can both pay and accumulate dividends. That is, the investor has the opportunity to make a choice and form a portfolio of funds of the desired type. If the fund pays dividends, there is no need to sell fund shares to generate income.

These are not the only differences between Russian and foreign investment funds. You can read more about their comparison.

No language barrier

One of the common myths of foreign investment is the need for a good knowledge of English. Indeed, the main language of most foreign companies is English. However, knowledge of English will not be required in all cases. Some foreign companies are focused on an international audience, including clients from Russia. Therefore, they have websites in Russian, translated documents, and even Russian-language support or representatives in Russia.

Therefore, if using English is a problem, you can choose one of the foreign companies that supports Russian for investment. For example, this is the American broker Interactive Brokers or the investment and insurance company Investors Trust.

The only problem may be researching information about foreign stocks, bonds and investment funds. Information about them is only in English. In this case, you can use online translators or contact a financial advisor who will help.

Simple account opening procedure

Another advantage of foreign investments is that there is no need to travel anywhere to open an account with a foreign company. You can open an account with a foreign broker or insurance company remotely. In the case of a brokerage account, you need to register a personal account and fill out a web form on the broker’s website, and then send electronic scans of two documents for verification.

In the case of an insurance company, opening an account occurs through a representative of the company, who will help you correctly fill out the necessary forms and documents and send them to the insurance company for review.

In most cases, verification of documents and opening of an account occurs within one to two weeks. The only exception here is foreign banks, many of which require a personal visit to the bank.

Disadvantages of foreign investment

Limited selection of companies

The same applies to foreign ones. In recent years, their number has also decreased: Generali and RL360 stopped opening accounts for Russians.

To the credit of all these companies, it is worth recognizing that this did not affect clients from Russia who already had open accounts. They continue to work as before. Therefore, if your plans include opening an account abroad, then you should think about it now, before the number of foreign companies decreases even more.

Required initial amount

Many foreign companies have minimum deposit requirements to open an account. For foreign banks it can be from 50,000 to 1 million euros, depending on the bank.

For foreign brokers it can be up to $10,000, however, some brokers may not have minimum deposit requirements. However, brokers may charge regular commissions, which will be high for small amounts like 1-2 thousand dollars. Therefore, for small amounts, a foreign broker must be selected more carefully, taking into account the tariffs.

Investment insurance companies have different deposit requirements depending on the type of program. Savings plans with regular contributions have a minimum contribution of $100-$500 per month. However, in practice, it is recommended to invest in such programs starting from $300-500 per month or more. Another type of program - with a large one-time contribution - requires much more: $30,000 - $75,000.

Russian brokers and management companies are less demanding when it comes to opening an account. Many brokers do not require a deposit at all to open an account; for others it is small - about 30-50 thousand rubles. As for management companies that offer mutual funds, the threshold for entry into them in most cases is 5,000 - 15,000 per fund (in some management companies it is more or less). For trust management of capital, you will need a larger amount - several hundred thousand rubles.

Higher fees

As mentioned above, the commissions of foreign funds are several times lower than the commissions of Russian funds. As for the commissions of the companies through which investments take place, the opposite is true.

Service fees in a foreign bank depend on the selected package of services and can range from several tens of dollars/euro/francs per year to a thousand or more, depending on the options. Commissions for storing assets are 0.1-0.5% of the amount of assets. Commissions for transactions with securities are 0.2-2% of the transaction volume, but a minimum of 20-30 euros or dollars. Investment consulting - 0.15-0.3% of the portfolio amount.

With Russian banks, depending on the package of services, service can be free or cost several thousand rubles per month.

For foreign brokers, the minimum commission per transaction starts from 1-2 dollars and depends on the number of securities purchased. The broker may also charge a fee for inactivity, which can range from $10 to $20 per month. The commission for inactivity is reduced by the amount of commissions for completed transactions. Some brokers do not charge it at all or stop charging it if the amount in the account exceeds a large amount. Other fees may also apply, such as fees for market data without delay.

In unit-linked savings programs, annual policy maintenance fees can be up to 3%. However, it provides bonuses- additional payments from the insurance company for the duration of the program and the amount of contributions. The longer the program term and premiums, the greater the bonuses, which reduce the overall cost of the policy. Changing funds in the portfolio is free up to 15 times a year.

In programs with a large one-time contribution, annual commissions can be 1-2%. But starting from the first year they gradually are decreasing and within 5-8 years can reach 0%. All that remains is the fixed commission for the policy. The commission for the transaction is fixed and amounts to 20-30 dollars. There is no commission for currency exchange.

The commission is much lower than foreign ones. The commission per transaction can be 0.03% -0.1% of the transaction volume. Many brokers do not have a minimum commission per transaction; for others it is about 30 rubles. Market data is free. Remuneration for service may be absent or range from 10 to 150 rubles per month. Often it is reduced by the amount of completed transactions.

The need to submit tax returns yourself

Foreign companies are not tax agents for Russians, therefore Russian citizens are required to independently file a tax return with the Federal Tax Service of Russia and pay tax at a rate of 13%. The obligation to file a tax return arises if income was received on the account in the past year. Therefore, in most cases, a tax return must be filed annually.

The only exception is unit-linked policies. According to the law, income received within the policy does not need to be declared. The obligation to pay tax arises when the amount withdrawn from the policy exceeds the amount deposited. Since policies are usually issued for a long term, there may not be a need to file a tax return for many years.

In the case of foreign banks, the amount of reporting increases: citizens of the Russian Federation who are in Russia for more than 183 days a year must notify tax office about your foreign bank accounts within a month after their opening and closing. It is also necessary to report annually on the movement of funds in the account. Notify the tax authorities about your brokerage accounts and unit-linked policies not required except for the case when a brokerage account is opened in a foreign bank.

When working with Russian companies, everything is much simpler. You do not need to report to the tax office yourself. Russian companies in most cases are tax agents, that is, they themselves file tax returns for their clients and withhold taxes.

No tax benefits

Russian legislation provides tax incentives for investments: an incentive for long-term ownership of securities and tax incentives available on. But they are only available for securities traded on Russian exchanges, and therefore do not apply to foreign investments.

The only exceptions are unit-linked policies, which are life insurance policies. Tax benefits apply to them - tax must be paid only on income received in excess of the refinancing rate.

Conflict resolution

Since foreign companies are registered in foreign jurisdictions, they are subject not to Russian legislation, but to the legislation of the country where the company is registered. That is, if the need for a legal dispute arises, it will have to be litigated abroad. To do this, you will have to understand the intricacies of foreign legislation and hire a foreign lawyer, whose services can cost several thousand dollars.

The risks of such disputes are not very high if the selected company has a good reputation and the country is a developed financial market with a financial regulator. For example, in the USA the role of regulator is performed by the SEC (Securities Commission) and FINRA ( Financial Services Industry Regulatory Authority).

As you can see, investments abroad have enough advantages to consider them as a good alternative to purely Russian ones: low investment risks, protection of investor capital, a large selection of instruments, low commissions. Disadvantages include higher requirements for the initial investment amount and the need to pay taxes yourself. But these shortcomings are not an insurmountable obstacle, which means that investing abroad today is available to many.