How much can you make money on investment

The novice investor usually worries the main question: how much can you make investments? Is it worth doing this to how profitable to invest? Or maybe it's easier to discover the contribution to the bank and do nothing?

What you can invest money

There are many options for money investment, and investments differ in their return and risk. In finances there is an indisputable rule: the higher the profitability, the greater the risk.Shares

Investments are made to divide various classes. Such, for example, both investment in stocks, shares and bonds. Shares are equity securities, buying stocks, the investor becomes a co-owner of a business, may claim a share in its income in the form of dividends and profit from the growth of quotes.

Bonds

Unlike shares, bonds are debt tools. They are closest to the deposit to the bank. The investor can count on guaranteed coupons payments if they are provided for by the release and obtaining a certain amount at the end of the term. But in contrast to the contribution to the bank, the investor can sell the bond at any time and get its market value.

Pai funds

In addition to the independent purchase of securities, there are also collective forms of investment with the help of mutual investment funds. The fund is a single pool of assembled funds of investors, which is eventually managed by professionals and is used to invest money in the same promotions, bonds and other assets.

Goods, Derivatives

Theoretically, investments also include investments in derivative securities, if they are made not to the real purchase or sale of assets underlying them - currencies, gold, oil, metals, and so on, but in order to profit due to changes in quotations. However, this type of investment belongs to the most risky and hardly suited to private investors, especially beginners.

Gold

Private type of investment with its specificity - buying precious metals. Unfortunately, while transactions with real metal are taxed by value added, this type of investment remains not developed and not fully demanded.

Currencies, real estate

In the household we call investment if we buy currency or real estate. Strictly speaking, it is not quite so. From the point of view of the theory of investment in these assets do not relate to investments. Currencies - segment not investment, and money markets, and real estate - in general the concept is completely independent. However, of course, from the point of view of a regular investor, these are also objects to accommodate money.

Art objects and other

Another, by and large, the exotic area of ​​investment is to buy works of art, antiques, etc. However, in order to deal with this type of investment, it is necessary to understand very well. This type of investment is clearly not for everyone.

Dates of investment

The profitability of investment depends on the term that money is investing. The longer it is, the higher the investor can expect a high yield. This is due to the fact that we invest money, refusing to yourself in something right today, here and now. For this, from an economic point of view, one or other compensation should be paid, depending on the time of our delay to implement desires.

The second point is that the more period, the higher, unfortunately, the risk to which our investments are subjected. At a longer period of time, the likelihood of the unfavorable development of events - the issuer's bankruptcy, a change in its financial situation due to changes in demand for its products, the beginning of the recession or even the crisis in the economy as a whole, and so on.

As an illustration, the dependence of the profitability of bonds from the remaining timing to their repayment is possible.

The real example of 2020. At the rate of refinancing in 5.5%, this situation has developed on the market. Bonds with a period of less than a year 5.2-5.3% per annum. One year 5.3-5.5%. With a maturity of five years 5.6-5.7%. For ten years 6.1-6.2%, and so on.

How much can you earn?

We will analyze examples as you could earn on different types of investments, suppose in 2020. The Russian stock market has grown, judging by the index, by 13%. Thus, if the investor had invested the same paper into his portfolio that makes up the Moscow Exchange index, he would receive income at least twice as high as the contribution to the bank.

In the same period, credit organizations attracted contributions for 4-5 percent. And in the market of government securities bonds, the yield was as we see from the previous example, 5.2% per annum. According to corporate bonds, the yield was even higher - 6-10 percent, depending on the reliability of enterprises.

Thus, placing money through the broker on the stock exchange, the investor could count on the bond market, let them not two, but one and a half times more than in the bank. At the same time, of course, such investments do not fall under the guarantees of deposits.

But, on the other hand, if you buy bonds of the largest Russian companies, then their existence is provided at least access to commodities. For them, in contrast to credit institutions, as a rule, real production assets that generate stable income are worth.

And what about other types of investments? Real estate market analysts argue that objects have risen in price for a year on more than 16%. But at the same time, this data should be extremely careful:

• First, realtors are always, under any circumstances, they argue that prices are growing, even if in fact the trend is opposite.
• Secondly, the proposals are not yet a real price of a particular object, in order to sell something, the cost has to throw off, which remains at the level of a non-public agreement between the seller and the buyer. The real estate market is significantly less transparent and not so much as the securities market.

In addition, the cost of the entrance ticket differs significantly. For real estate investments, at least several million are most often required, if this is not a collective scheme, while to buy the same bond on the Moscow stock exchange just thousand rubles.

It is impossible not to say that one of the most favorable types of investments in 2020 was a simple purchase of currency. Dollars have risen in price by more than 20%, and the euro is almost 30%.

This suggests that to make money as much as possible on investments, it was possible to those who contributed money to the tools nominated in foreign currency. Even despite the fact that initially percentages looked more than modestly. For example, it was beneficial to invest in Russian Eurobonds, on which 4 percent could be obtained, but in the currency, and not in the steering.

What to pay attention to investing

Let's summarize. The factors for which should be paid to the first place can be reduced to the following.

1. Macroeconomics: The expected inflation and course of the national currency are two indicators that turn out to be the most significant for investment results.
2. In addition, it takes extremely carefully to the reliability of issuers, to their income, of which, in the end, will be paid to investors.

On the other hand, despite certain risks, investments should be engaged. Because you can make money on investments much more than just putting money to the bank.