Where is it profitable to invest money, even if there are very few of them?

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

Explanations by experts for novice investors.

Is it possible to invest if you have little money

Let's say you have free 30, 20 or even 10 thousand and you want to invest them profitably. A logical question arises as to where and whether this can be done at all. Not all investment options are available with these amounts. For example, it is obvious that investing in real estate and renting it out will not work. However, this does not mean that the idea is worth saying goodbye to.

Such amounts are called microinvestments or nanoinvestments. The attitude of financial institutions towards them is extremely skeptical. And in vain, because often the path of great investors begins with such amounts.

Igor Fainman financial advisor

By investing 10 thousand and stopping there, you are unlikely to get rich. But if this is just the beginning of building your investment portfolio, there is definitely a chance of success.

Where to invest money

Bank deposit

The most obvious way. However, you cannot call it particularly successful. The average rate for a period from one to three years is 5.83%.

It is worth keeping investments in mind if you do not want to understand anything and are not ready to take risks.

Bonds

Classic bonds are a relatively simple fixed income financial instrument. Their meaning is this: the company (or the state in the case of federal loan bonds) borrows money from you. In return, she undertakes to pay interest on this amount, as well as return the face value of the bond - the body of the loan - at the end of the term for which you agreed.

In most cases, one bond costs 1,000 rubles. And even for 10 thousand you can make a small investment portfolio, consisting of 10 issuers. It is clear that the income will be scanty. But the investor will gain experience in personal capital management. On average, the yield on investments in bonds of Russian issuers ranges from 7 to 12% per annum.

Igor Faynman

Stock

Securities of different companies cost differently, so a small amount is enough to become a shareholder. There are several ways to make a profit.

Due to dividends

If the company ended the year with a profit, it distributes part of it among the shareholders. What exactly and what will be the amount of payments to each is decided at the general meeting of the holders of securities. If you buy shares of a large company with a stable financial result, you can receive a certain amount annually. For example, at the end of 2018, Gazprom paid 16.61 rubles per share, Sberbank - 16 rubles.

To make the right choice, it is worth studying the company's dividend policy for previous years. For example, ordinary shareholders may not be paid anything. In this case, it is worth buying the privileged ones, they have priority in the distribution of profits.

Due to changes in the price of shares

The value of securities is volatile. You can buy them today at the same price, and in a year, five, ten years, sell them at a much higher price. The difference will be your income.

Here's a beautiful example for you. At the beginning of 2019, Apple's share was worth around $ 150, today it is 314. This is a crazy rise of 107%, while it is usually considered a good result when it is above 3%. There are absolute record holders, one of which is Netflix. Five years ago, one share of the company was worth around $ 50. Now there are more than 300.

Dmitry Kuvshinov Executive Director of Bilderlings

It is important here to carefully approach the choice of companies whose shares you buy, to look at the dynamics of the price of securities, to take into account various factors that may affect it. In general, the process is not easy, but it is not nuclear physics either.

If you have a small amount, the loss of which will not break your heart, then you can learn how to understand stocks on it. Although, perhaps you will immediately do everything right. Moreover, you should not get hung up on the securities of foreign companies, consider all the options.

The domestic stock market is characterized by rapid growth rates. Suffice it to say that in 2019 the index of the Moscow Exchange, which is calculated on the 50 most liquid shares of domestic issuers, increased by 28.55%. This is only an average growth rate; the shares of some companies are significantly ahead of the main coefficient of development of the Russian stock market.

Oleg Bogdanov Lead Analyst at QBF

It is important not to confuse buying stocks with betting on their price. In the first case, you own securities. In the second, you play a game of chance, trying to guess the change in their course. And the chances of winning are not that high.

ETF-fund

If you don't know which stocks to choose, you can invest in an ETF. He already has a portfolio of securities, and by investing in it, you acquire a share of this portfolio. At the same time, you do not need to select shares yourself, they have already done this for you.

Mutual fund

A mutual investment fund is a form of collective investment. Investors pool their money, and the management company disposes of it to generate income. The entrance threshold is small, you can buy and sell shares on any working day.

ETFs and mutual funds are conceptually similar. But shares are available for purchase without a brokerage or individual investment account, which somewhat simplifies the process.

Mutual funds are beneficial because there are people who make decisions for you. But this is also a disadvantage: it all depends on their competencies. And you are exposed to external risk factors. There is no way you can insure yourself against market fluctuations, these are questions of macroeconomics.

Dmitry Kuvshinov

Crowdlanding

This is an alternative form of investing through online platforms when you lend money to a business or other individual.

Russian crowdfunding is developing intensively: now there are more than 20 sites in the Central Bank register, and about 10 more are preparing to enter the market. By the end of 2018, the volume of loans issued amounted to more than 16 billion rubles.

Oleg Novikov Head of the Investor Relations Department of the City of Money crowdfunding platform

The entry threshold is quite low here - from 5 thousand rubles. The investor himself can propose to the project the amount and interest rate that he considers necessary. For example, if you have free 50 thousand rubles, it is not necessary to invest the entire amount in one project, it is much more profitable and safer to divide it into five projects of 10 thousand rubles each.

The crowdfunding platform, for its part, assesses the likelihood of project failure. So you can focus on this indicator. In general, the same rules apply here as for any area of investment: the higher the profitability, the higher the risks.

If you are offered a yield of more than 30% per annum, this is a serious reason to think. The business marginality of a company that borrows at such a rate is simply impossible. And if a borrower accepts a rate at such an interest rate, in most cases he will go into a long delay or default.

Oleg Novikov

This is not to mention that such a platform itself can be fraudulent. Go to the site, look at the description of the company, the composition of managers, study their reputation, read reviews on third-party sites.

Things to remember if you start investing

There are several rules, and they are very simple.

1. Investing money is only worthwhile in mechanisms that are understandable to you. If you cannot figure out what is happening with your savings and due to what the profit is formed (or loss - depends on luck), it is better not to risk it.
2. The higher the declared profitability, the higher the risks.
3. Very high profitability is always a reason for doubt. Most often, deceivers act this way.
4. If you plan to ask a specialist where to invest money, remember: now only investment advisors can give investment advice. They are distinguished from others by the license of the Central Bank and responsibility for improper performance of duties. The register of investment advisors can be found at.
5. It's important not to put all your money on one financial high-risk horse. Better to separate them and nest them in different ways. If one of them doesn't work, you will always have hope for the others.