On October 25, the Bank of Russia lowered the key rate for the fourth time in a row. It decreased by 50 basis points and reached 6.5%. A week earlier, Central Bank Chairman Elvira Nabiullina, in an interview with CNBC, said: "We see that our rate can not only be reduced, we can act more decisively." Inflationary risks that the Central Bank saw back in September did not materialize, and the growth forecast consumer prices may be revised downward. It is worth noting that the situation with inflation, which the Central Bank considers to be its top priority, has changed significantly over the past five years. In March 2015, this figure was 16.9%, and in September 2019 it was already 4.0%. This allows the regulator to reduce the key rate, that is, to make borrowing cheaper for commercial banks, so that they, in turn, lend to companies and citizens at lower interest rates.
“We predict that on the horizon of 12 months, the Central Bank of the Russian Federation will reduce interest rates cumulatively by 1%, including a reduction of 0.5% until the end of 2019 and another 0.5% in 2020,” notes Natalya Stepanova, Director of the Investment Department of Ingosstrakh-Investments Management Company . Parallel easing of monetary policy in the US and the Eurozone allows the Bank of Russia to make the ruble more accessible without fear of its excessive weakening against the dollar and the euro. All this is happening at a time when the transition of the Russian Central Bank from neutral to stimulating policy is critical for the development of the economy. "Slow down economic growth in Russia (forecast GDP growth in 2019 is 1.0%) requires the launch of monetary stimulus, which implies the level of the key interest rate at 6% and below,” says Natalya Stepanova.
“We predict that over a 12-month horizon, the Central Bank of the Russian Federation will reduce interest rates by 1% in aggregate, including a reduction of 0.5% until the end of 2019 and another 0.5% in 2020,” said Natalya Stepanova, director of the investment department of Ingosstrakh-Managing Company. Investments".
What does this mean for people who traditionally keep their savings in deposits? Bets on bank deposits also depend on the key rate of the Central Bank and will inevitably fall. According to the Bank of Russia, over the past five years they have almost halved. If in December 2014 - January 2015 individuals could place their ruble savings at 10-12% per annum, then by the middle of this year, the rates term deposits up to 12 months accounted for 5.3%, and for deposits over 1 year - 6.7%. And, according to Natalia Stepanova, at the end of this year, the rate on annual deposits may fall below 5%. At the same time, individuals can no longer roll over deposits at historical rates - this was one of the few options that allows you to fix the current level of profitability on ruble savings for several years. It turns out that in order to maintain profitability, you will have to look for an alternative to bank deposits.
If you are accustomed to keeping savings and earning income in rubles, alternativean option would be to buy long-term federal bonds(OFZ). These debt securities are issued by the Russian Ministry of Finance, so they have a high level of reliability and the coupon income on them is not taxed. “For OFZs with an average duration (4-7 years), the average yield to maturity will be 6.59%, and the net coupon income will be 7.05%. In addition, if interest rates of the Central Bank of the Russian Federation are reduced by 1%, the market value of bonds may increase by 3-4%, and the estimated yield level over the next 12 months will be from 9.82% to 11.21%,” notes the director of the investment department of Management Company Ingosstrakh- Investments". This is actually twice the deposit rates at which citizens can now place their ruble savings in banks. And, as always in investing, if you are willing to increase the degree of risk, there is a possibility of receiving a higher return. It is possible to form a portfolio of 6-10-year OFZs and fix the yield to maturity at 6.84%, and the net coupon yield at 7.12%. In this case, it is possible to get 11.24% -13.29% for the year.
If you prefer to keep funds in foreign currency, especially in euros, and if you want to maintain profitability, you will have to look for an alternative even more actively. On October 10, on the sidelines of the Finopolis forum, Elvira Nabiullina told reporters that the Bank of Russia would discuss with market participants the possibility of introducing negative rates on foreign currency deposits, and warned that negative euro rates for credit institutions are a long-term phenomenon, given monetary policy leading countries. The fact is that Russian banks place foreign currency borrowed on deposits and are subject to negative rates, that is, they are forced not to make a profit, but rather pay extra for holding funds. True, the losses are still small and do not pose a threat to the sector, the Central Bank calculated. If banks attract deposits in euros at 0% and invest at minus 0.5%, this will affect profits banking system less than 1%. But it is clear that credit organizations they count every penny, they say in the Bank of Russia. There is no talk of negative rates for citizens yet, they can be introduced for companies. However, the largest Russian banks are already refusing to attract deposits of individuals in euros.
Let's see what happens against this background with rates on deposits in foreign currency. According to the Central Bank, since the end of 2014, on deposits in euros, they have decreased from 4.9% - 5.2% to the level of 0.37% -0.65% by the middle of this year. The situation is similar with deposits in US dollars: rates on them have more than halved in 5 years. If at the end of 2014 citizens could receive a yield of 5%, then by mid-2019 the level of average deposit rates in the market fell to 2%. And this trend is long-term. “USD deposit rates will continue to decline in the 2020s. The market expects that the US regulator will continue to reduce rates, the scale of which may reach 0.5% -1.0% in case of a recession scenario in the economy. In this situation, the yield of dollar deposits in Russia will drop below 1% over a 12-month horizon,” says Farid Yunusov, CEO UK "Ingosstrakh-Investments". Moreover, banks will reduce interest also because the Central Bank is seeking to reduce the use of foreign currency by Russian market and increases reserve requirements for dollar deposits.
“USD deposit rates will continue to decline in the 2020s. The market expects that the US regulator will continue to reduce rates, the scale of which may reach 0.5% -1.0% in case of a recession scenario in the economy. In this situation, the yield of dollar deposits in Russia will fall below 1% over a 12-month horizon,” says Farid Yunusov, CEO of Ingosstrakh-Investments Management Company.
Eurobonds denominated in the same currency can become an alternative to bank deposits. Such instruments in dollars are widely represented in Russia. “From the point of view of taxation, sovereign Eurobonds issued by the Russian Ministry of Finance, according to them, investors are exempted from paying personal income tax on coupon income and currency revaluation,” Farid Yunusov clarifies. For a long-term investor, sovereign bonds maturing in 2028 and 2030 may be a good option. These are releases from high level net coupon yield - 7.52% and 6.58% per annum respectively. The yield to maturity on them is 3.41% and 2.84%. In addition, Eurobonds are traded on the Moscow Exchange and have a small face value. This makes them liquid - that is, such debt securities can be quickly sold to retail investors. It is worth adding that income from the difference between the purchase and sale or redemption price of Eurobonds of the Ministry of Finance is subject to personal income tax in the usual manner. But if you own debt securities traded on the Russian stock exchange for more than three years, exchange difference is not subject to tax.
“Eurobonds in euros also yield higher yields than similar bank deposits. But the list of such instruments is much smaller than the dollar ones. This summer, only 12 Eurobond issues in euro with a credit rating and a maturity date of more than 1 year were circulating on the market. And only one of them is issued by the Ministry of Finance and exempts resident investors from paying personal income tax on coupon income and currency revaluation,” says the Director General of Ingosstrakh-Investments Management Company. We are talking about sovereign Eurobonds maturing in December 2025. But the level of yield to maturity on them is only 0.82% and slightly exceeds the deposit rate. In addition, such securities need to be purchased for at least 100 thousand euros, which makes them available only to large investors. According to Farid Yunusov, among the euro corporate bonds traded in Russia, it is worth paying attention to the Eurobonds of the Moscow Credit Bank due in February 2024. The yield to maturity on this issue is 3.97%, while the net coupon yield is 4.92%. However, it is worth remembering that these debt securities will have to pay tax on coupon income and income from currency revaluation.
The Central Bank meeting is coming soon, and even if the rate is not lowered in June, it is quite possible to expect that by the end of the year the key rate will anyway be 9% or even lower. This means that deposit rates will inevitably follow a downward trend. Where should an investor go if ruble deposits are no longer interesting? The tools are still there. In this column, we will touch only on the most popular ruble instruments.
The closest analogue is . But in order for them to become a full-fledged alternative to a deposit, the following conditions are needed:
The issuer should be approximately the same reliability as the DIA (or, if we are talking about an amount of more than 1.4 million rubles, then at the level of companies of systemic importance);
The bonds must have a maturity date in the year you intend to withdraw the amount, otherwise there is a risk that the market price will be lower than the entry price if you exit before maturity. And be non-hybrid, non-convertible so you don't end up with bonds instead. Ideally - not subordinated in order to have a deposit risk;
Bonds should have a fixed coupon, especially if there is a downward trend in rates.
As for a more detailed choice, for the purposes of tax optimization, you can choose the 2017 issue from corporate bonds, which has preferential taxation of coupon income (like ruble deposits), since, even taking into account a lower rate than earlier issues of the same the issuer, due to tax incentives, the net yield is very often higher. And if you are three years or more away from the target, then it is better to buy them through type A, since it is unlikely that you will now buy bonds of top companies much below par, and the coupon income on issues of 2017 is mostly below the limit from which taxation begins . If you want to invest more than the IIA limit, then you can invest in IIA within the limit, and the rest - to a regular brokerage account. Or open several IIS - for yourself and your loved ones (if you trust them).
As for government bonds, I’m still for exchange-traded bonds, and not for “people's” OFZs, since for OFZ-n the entry fee is 0.5-1.5%, for early exit before maturity - too, plus when exiting earlier than one year, the entire coupon is lost, plus non-market pricing, plus they cannot be bought through IIS. In addition to government bonds, municipal bonds can also be considered, since we have unlikely stories such as the default of a city or region (like Detroit in the USA). Government bonds and municipal bonds, if the time permits, it is also better to buy through IIA type A, and if the planned amount is above the limit, then again several IIAs or all the excess - to a regular brokerage account.
Entrance to bonds - from 1 thousand rubles (for "people's" OFZ - 30 thousand).
Another option - structured products with coupon payments. As a rule, the coupon is not guaranteed, but conditional, which depends on the price of the underlying assets (or on the absence of default on these underlying assets, if these are bonds). Ideally, for the highest approximation to the deposit, I would advise choosing structured products:
A reliable issuer (after all, you are not buying the underlying assets, but a note issued by a bank / broker, so you take on the risk of this issuer);
Coupons with memory effect: if on the current observation date the condition for the coupon payment is not met, and on the next date it is, then you receive a coupon for both the current and the next period;
If the note is pegged to the price of the underlying asset, and not to the absence of default, then ideally - a note with the condition that the coupon is paid even if some or all assets trade at a price below the initial price, but within the allowable drawdown. Moreover, if such a limit is broken, nothing will happen, the note will continue to operate until the next observation period. So the chances of a coupon are higher even with volatility;
At the end of the note, there should also be a barrier to which the price of one or more (or all) assets can fall, but at the same time you will receive 100% of the capital back. Moreover, it is important that for this note, breaking this barrier at any time during the life of the note, except for its end, does not lead to the fact that the barrier is considered broken, the coupon is not paid, and you receive only a part of the invested funds minus the drawdown on that asset , which sank the most;
The barrier should correspond to the historical drawdown for each asset: if in one way or another a share in its life sank to a price lower, for example, $50, then a possible similar drawdown in the future should be taken into account and compared with a conditional barrier. Then, if one or more (or maybe all) of the underlying assets at the end of the note are traded below the initial price, but within the barrier, then you will return at least 100%. This is just close to the deposit;
If we are talking about the payment of coupons in the absence of default of the bonds to which the note is linked, then it is necessary to choose bonds of companies of systemic importance. And check their jurisdiction so that it does not turn out that the note is tied to Sberbank, but Ukrainian, for example.
Additionally, it is worth checking whether the note is quoted on the Russian market (such exchange-traded notes have already appeared on our market). If yes, you can try to buy an already issued note on the secondary market at a price below the face value and earn extra money. You can also invest in notes through IIS. Remember that the coupon is but a note, like any other financial results, unlike bonds are subject to 13% taxation.
Entry into structured products is possible with an amount below 100 thousand, but sometimes the threshold is higher.
Another option - with coupon payments. It comes either with fixed payments, or is a combination of a fixed payment and participation in the growth of the underlying asset to which the ILI program is linked. Of course, the coupon + participation in growth is less like a deposit due to greater uncertainty, but it can give a greater profit at the exit. ILI will be an alternative to a deposit if you choose a reliable insurance company, and also if you feel comfortable freezing money for a period of 3-7 years, most often it is five years. But this tool has tax incentives: contributions to such a product are subject to a social tax deduction if the program is for five years or more (but not more than 120 thousand rubles per year), and profits from such an instrument are taxed at 13% only from the excess of the refinancing rate (that is, if the program the yield will be 9%, and the rate is 9.25%, then the profit will not be taxed). An additional plus is risk protection, as well as protection of capital from division during divorce and foreclosure on property, quick inheritance without six months of entering into an inheritance.
The entrance to such programs can be about 300 thousand, but it depends on the company.
There is another option for a ruble deposit - this is coupon trust management, but this option is suitable for savings of several million rubles, as a rule. There is no fixed income and coupon here, just quarterly, depending on the result, the investor is paid some income. Plus, capital gains under management are added to it. But remember that 13% will be deducted from the income paid out and from the increase.
The entry threshold is several million rubles, depending on the company.
There are riskier options - investing in microfinance companies or business loans, in particular, through the Alfa Potok and Starttrack services. You provide an amount for a certain period at a specified percentage, usually from three months, at 20% per annum (sometimes higher). If everything is stable with the borrower's business, then you will get back 100% of the invested amount and interest.
The entry threshold for private investors in microfinance companies is 1.5 million rubles. And in services like Starttrack - from 100 thousand rubles. In terms of liquidity, that is, the ability to withdraw the amount ahead of schedule, options are possible: microfinance companies may provide for the opportunity to withdraw part ahead of schedule without losing interest. Multi-month loans generally assume that you do not require early repayment.
You will have to pay 13% on income, but even after tax, the yield is attractive. True, this type of alternative to a deposit is aggressive, so it will be risky to place all capital in such instruments.
Well, the classic option - buy real estate and rent. Everything would be fine, but the threshold for entering this option is higher than all of the above, in terms of liquidity, real estate is inferior to almost all previously considered options. There is also no guarantee of rental income (you can not rent or lose the tenant), there are high maintenance costs (property tax, repair costs, insurance, plus there may also be a mortgage). And, on top of that, you need to pay 13% of income, or apply for an IP and pay 6% / 15%, or buy a patent. And, if you do not plan to sell real estate, there are risks that the rental yield will not go beyond 4-5% per annum, which is lower than all of the above. Plus, because of the entry threshold, not everyone will buy a portfolio of different real estate, but a portfolio of bonds is quite.
In other words, you can go beyond the ruble deposit: there are other instruments that can provide regular income and return on invested capital at the end of the term. It remains only to choose the options that suit you.
Portal Banki.ru wishes all its readers and clients to always consciously and responsibly approach the choice of financial products and services. Full information about financial instruments is available at financial supermarket Banki.ru
Low deposit rates have forced citizens to look for alternative options for investing their savings with low risk. What options can be found on stock market?
Traditionally, a bank deposit is the most reliable type of savings. Barely ahead of inflation, it is at least able to maintain the purchasing power of savings, and the risk of revoking the bank's license is leveled by the existence of an insurance system represented by the DIA.
However, in the context of a trend to reduce the key rate, keeping money under, albeit actually risk-free, but still low interest becomes less and less profitable. It is not surprising that the Central Bank and professional participants in recent years have seen a steady increase in the interest of the population in the bond market - both government (all kinds of OFZ) and corporate securities.
To move away from deposits, you need a simple and reliable financial instrument, which is suitable for the role, which are offered by the largest domestic banks (Sberbank, VTB24 and others) as well as federal loan bonds placed on the stock exchange.
« Many yesterday's investors opt for OFZ, since this is an understandable instrument that currently looks more attractive than deposits both in terms of profitability and risks. The negligible probability of the issuer's default and the ability to calculate the financial result up to maturity makes OFZ one of the most attractive instruments on the market valuable papers for private investors,” explains Alexander Bakhtin, investment strategist at BCS Premier.
For example, on OFZ-PD bonds of the Ministry of Finance [with a constant coupon income - Ed.] with a maturity in 2021, you can now expect a yield to maturity of 7.9-8.1%. “Longer bonds in the current environment have a high risk, since there is a possibility of sanctions on new government debt issues in November. If there is no aggravation of sanctions, OFZ-PD with a maturity in 2021 can bring about 12-15% already on the horizon of the year, ”said Valery Bezuglov, an analyst at Freedom Finance Investment Company.
Bakhtin proposes to maximize the return on investments by buying OFZ for, which, subject to simple conditions, will allow, in addition to income from government bonds, to receive annually up to 52 thousand rubles in the form tax deduction(IIS of the first type).
“You can also buy bonds of the largest issuers, the reliability of which is beyond doubt - it is hard to imagine that the state will allow financial insolvency, for example, of Gazprom, Rosneft or Sberbank. And in general, if you trust, say, Sberbank or Gazprombank, isn't it more logical to buy their own bonds instead of a deposit and earn a couple of percentage points of additional yield? If funds are urgently needed, bonds can be sold at any time,” writes Aleksey Kovalev, an analyst at Finam Group.
The expert warns that if you need funds from a classic deposit (for those where possible partial withdrawal, and interest rates are lower), it will have to be closed, losing almost all of the accumulated interest income. In the case of bonds, you can sell only part of the portfolio and keep the accumulated coupon income.
If you look for foreign exchange yield, then on foreign currency deposits you can count on a rate in the area 2.5-3% for dollars, and 1-2% for euros However, due to the announcement of new anti-Russian sanctions, the risk of forced conversion of foreign currency deposits into ruble ones is growing. This topic has been repeatedly raised in the media head of VTB Andrey Kostin. And although the chairman of the Central Bank, Elvira Nabiullina, has a similar idea, this scenario should not be discounted.
Is there an alternative to foreign currency deposits, but in the stock market? “With foreign exchange instruments, the situation is about the same - the yield on bonds is about two percentage points higher than the yield on deposits. For example, in August, dollar-denominated Russian government bonds traded with a yield to maturity of over 4%, while the yields of the highest-rated domestic bank Eurobonds were in the range of 5-6% per annum. And this despite the fact that the rates on dollar deposits in Russian banks were at the level of 2% per annum,” says Kovalev.
"Among currency instruments it is worth paying attention to corporate issuers with a maximum credit rating that corresponds to the sovereign (BBB-). These include Eurobonds of Gazprom maturing in 2022 with a yield to maturity of 5%, Gazprom Neft maturing in 2022 with a yield to maturity of 5.1%, as well as Russian Railways short bonds maturing in 2020 offering Yield to maturity at 4%. It is advisable to buy these issues if you are ready to sit until maturity. Moreover, with the normalization of external conditions, one should also count on the growth of the body, which will increase the return on investment, ”advises Bezuglov.
A bank deposit is the safest way to save money. But also the most unprofitable: interest on deposits rarely covers inflation.
What investment instruments, other than deposits, are available to Russians, how profitable and risky are they? Together with financial experts, AiF.ru dealt with it.
The most affordable alternative to a bank deposit is the purchase of foreign currency.
The main advantage of investing in foreign currency is that they allow you to protect your savings from the depreciation of the ruble.
“The advantages of such a solution may lie in the fact that if you are going to go on vacation abroad, where it is possible to pay with these types of currencies, then you will not have to buy it at the last moment at a price that is incomprehensible today.
Besides, cash currency absolutely available today, there is no hype, and the new rules for buying and selling have not affected either demand or supply,” says Ivan Solovyov, professor at the Department of Tax and Financial Law at the Financial University under the Government of the Russian Federation.
However, it should be borne in mind that if the main income and expenses are in rubles, it is not worth transferring all savings into dollars or euros. Otherwise, under the condition of an urgent need for rubles, there is a risk of losing part of the funds on the difference in rates and commission.
Like anyone financial asset, the currency has risks of adverse exchange rate changes, therefore, in order to earn on fluctuations exchange rate need to be very good at economics and monetary policy conducted by central banks, experts warn. Oil prices also affect the exchange rate, so it's best to just keep your assets partly in rubles, partly in currencies, and then you definitely won't lose your savings.
“According to available analytical information, savings in cash dollars and euros in February brought losses to their owners at the level of 2-2.5 percent, so the only risk of such an investment is a further strengthening of the ruble,” Solovyov adds.
In addition to buying dollars and euros in banks or exchange offices, you can buy currency with the help of brokerage companies: they provide to an individual access to the foreign exchange market, as a result of which it is possible to make currency operations at the exchange rate, without leaving home. The commission of the broker and the exchange will be less than those that the exchangers "wind up".
“It is important to remember that when opening currency account it is necessary to choose the tariff “for currency conversion” in order to significantly reduce the brokerage commission. One account is opened, as it is universal for all three currencies (ruble, dollar and euro). Next, an account is opened in a bank that is better affiliated with a brokerage company, this will reduce the time and commissions for the transfer. The account must be for settlements in dollars, euros and rubles. Make out debit card, connect Internet banking and transfer your account details to a brokerage company. Now that everything is ready for currency conversion, you can transfer money from your bank account to your foreign currency account in brokerage company by applying for a currency conversion. It is worth knowing that the minimum amount for conversion is 1000 USD. e. and must always be a multiple of 1000 y. e., that is, change 1120 c.u. e. it won’t work, ”suggests Ilya Buturlin, lecturer at the Financial University.
Another affordable way invest savings - buying real estate. True, to put this decision into practice, a substantial amount will be required.
Currently, the housing market is in stagnation: supply prevails over demand, which is why apartment prices have noticeably dipped. Is it worth it now to invest in meters?
Investing in real estate is good when the economy is on the rise, says FINAM Group Analyst Bogdan Zvarich. According to him, during the crisis, prices for apartments may continue to demonstrate a confident negative trend. Moreover, the investor may not have buyers to sell the previously purchased apartment.
“The main disadvantages of this type of investment are the low liquidity of the asset - if you want to sell the purchased property quickly, you may have to sell an apartment at a discount to market prices, and a high entry threshold - you cannot buy an apartment with 100,000 rubles on hand. Wherein this amount calmly and without problems can be invested in stocks or currencies,” says Zvarich.
Ivan Solovyov agrees with him. “In the near future, I would not consider real estate objects as an investment, and even more so, a long-term investment. In addition, one must take into account new order taxation of housing upon sale. Since January 1, 2016, the principles for calculating personal income tax when selling real estate have changed: the tax-free period of ownership of property has been increased from three to five years. There is also a gradual transition to the payment of property tax based on cadastral value object," the expert emphasizes.
However, if the purchase of real estate is not of an investment nature, that is, an apartment or a house is bought for oneself, then now is the time for this decision - prices are at the bottom, and sellers are ready for discounts.
If everything is more or less clear with the purchase of real estate and dollars, then the stock market, as a rule, is for ordinary person- dark forest. This market is characterized by high risks, especially for those who are not familiar with its rules and features. But its possibilities are proportional to the risks.
Stocks are one of the most popular instruments among investors around the world. Shares placed on the exchange have passed the listing procedure (admission to trading on the exchange due to compliance with the requirements for reporting, shareholders, etc.).
The main advantage of investing in stocks is their growth and the profit that an investor can potentially receive. “For example, in 2015, the ruble yield on dollar deposits amounted to about 38%. At the same time, the shares of Akron and Mechel showed an increase of more than 100%. Even the liquid shares of Sberbank last year grew by 74%, which greatly exceeds the profitability of converting rubles into foreign currency and opening currency deposit”, - Bogdan Zvarich gives examples.
The main difficulty in investing in shares is the choice of a particular issuer, the expert adds. “Yes, you can get a very good return, sometimes many times higher than the deposit or the growth of foreign currency. But for this you need to choose the right company. To do this, you need to constantly monitor the market and have a certain investment experience, which will allow you to select the “right” stocks and make money on them,” he says.
To buy shares, it is now enough to open an account with a brokerage company once, after which transactions are made in a special terminal, and funds are deposited and withdrawn by submitting orders via the Internet.
According to Buturlin, given the specifics of the Russian stock market, it is important to consider the following factors that affect profitability:
During times of instability, financial markets growing interest in investing in precious metals. Their value did not change for a long time, which led to some cooling of investors' interest. However, with the appearance of the prospect of some reduction in the price of the dollar, investors are turning their gaze towards gold and silver. For example, in February of this year, investments in gold brought almost 8% profit.
"Investing in gold in in kind, whether bullion coins, bullion or jewelry, due to significant associated costs cannot compete with exchange operations on futures and options on precious metals. Nevertheless, short-term operations with this instrument look very attractive. Gold for the second month in a row became the most profitable investment. If in January the investor's income in this precious metal in rubles amounted to 7.2%, then in February it was already 7.7%. In dollars, the price of gold rose even more: by 9.3%, to $1,220 per ounce,” says Zvarich.
In the near future, volatility in world markets will continue, which means that interest in gold as the main defensive asset will remain, experts are convinced. However, there is a risk that in the event of an increase in the Fed rate, gold may again fall in price, so it is worth investing in gold for the long term - from two years - and then, most likely, in order to protect savings from inflation, Buturlin notes.
There are many ways to invest in precious metals:
“In the latter case, investments will be limited by the duration of the contract for a derivative financial instrument. As with other financial instruments, you need to know that there is a risk of falling prices for metals, which means that an investor, investing in metals, must determine in advance the amount of risk that he is willing to bear in case of an unfavorable price change,” Buturlin sums up.
A rare bank in the Russian market, especially from the list of the top 10 in terms of the largest amounts of household deposits, is ready to offer a depositor a rate higher than 8% per annum. There is no reason to expect an increase in rates on deposits in rubles or foreign currency. Rather, there will be a further gradual decline.
The reason for this is not only that the key rate Central Bank decreased in December 2017 to 7.75%. The banking sector is saturated: the development of the credit sector lags behind the growth of the portfolio of liabilities. Therefore, banks, not particularly in need of increasing liquidity, are slowing down the growth of their deposit portfolios.
Many people still keep their savings in banks, as they are used to this simple financial instrument and trust state system deposit insurance. But there are more and more people who are looking for an alternative to deposits. Consider some of these alternatives and outline their features.
Investment companies like to compare structured products with bank deposits. The conclusions of such comparisons, of course, are always in favor of the former. Among the benefits of structural products, the following are commonly cited:
But as soon as the investor asks about the details and possible shortcomings, the picture becomes less rosy. Unlike deposits, structured products are not subject to state insurance, contain risks and imply mandatory payment of personal income tax from interest income.
If you have never invested in anything other than deposits, but are seriously considering the possibility of issuing a structured product, then for your own peace of mind, first choose one that provides 100% capital protection and has a short validity period - up to six months. Typically, interest rates on such products are 4-6% higher than on deposits, but for many this is already much more attractive.
Structured products are designed in such a way that it is not the investment company itself that brings profit to the investor, but the underlying assets - those issuers (or market assets like oil, gold) on which the product works. Investment company acts as a seller of obligations and sets the conditions under which the investor will receive a certain level of income. So, when choosing a structured product, solve the issue of trust in the underlying asset in the first place.
We are talking about both federal loan bonds and corporate bonds. The first ones are less profitable: 7-8.5% per annum, but more reliable. The latter can bring up to 13-14% per annum, but the risk of default on the most profitable securities makes you wonder.
During periods of lower interest rates on deposits, the value of bonds increases. Therefore, in Russia, at the moment, bondholders have additional income- an increase in the value of their securities. This period is not permanent, and sooner or later it will be replaced by the next, in which the value of bonds will begin to fall.
In general, bonds have always been a good alternative to bank deposits. You can invest in them in different ways:
The first option is cheaper, but keep in mind that there will still be a bank or broker commission for buying and selling bonds during the calculations.
An additional advantage of bonds is a discount on payment of personal income tax. Income received from corporate bonds Russian issuers, is completely exempt from tax if the securities were issued after 01/01/2017 and have a yield no higher than the key rate of the Central Bank + 5%.
Against the backdrop of falling deposit rates in 2017, many Russian corporations raised dividends on their shares. Holders of such securities as MGTS, Rosseti, Tatneft, Mostotrest, Severstal and others received dividend yields from 13 to 16.5%. Expected dividend yields for 2018 on many domestic stocks are also in double digits. Among promising dividends, analysts name the shares of Lukoil, MTS, Norilsk Nickel, Mechel, Bashneft. For the latter, the yield is expected to be in a wide range from 12 to 25%.
But tempting figures should not make yesterday's investor lose his head and immediately give up ruble deposits, buying shares of companies with all his free money, even if they are blue chips. Stocks are a risky business, and stocks on the Russian market are also unpredictable. If you are looking for a worthy alternative to a bank deposit and at the same time decide to become a shareholder, make a portfolio of different assets. It can be a set of “stocks + bonds + shares”, or “stocks + a protective structured product”. Diversification has not harmed a single private investor yet, and on the contrary, saved many from large financial losses.
