There is no 100% safe investment; there is always a risk of loss, says investor, founder of Frontiers, finance expert, business scaling expert Maria Kuznetsova. She noted that the stock market has not only ups and downs, but also downs, the real estate market stagnates during crises, and exchange rates fluctuate. The expert told Izvestia what an investor can do to reduce risks and prevent losses in the future.
“[Следует] invest time and money in yourself and your education, increase financial literacy and level of awareness. You can take courses, including free ones, subscribe to experts who share information about investments on their blogs, read books on finance and investing, play games like Monopoly and Cash Flow. All this helps develop financial thinking and gain the knowledge necessary to make smart decisions,” explained Kuznetsova.
According to her, it is also worth diversifying capital. The more diversified the investment portfolio, the more protected it is, the expert emphasized.
“I recommend distributing capital in the following proportions: 50% – low-risk strategies, such as bonds, real estate; 30% – strategies with moderate risks, such as business investments; 20% are high-risk strategies,” she said.
In addition, the expert recommended diversifying within each instrument: for example, buying shares of companies from different sectors of the economy; use different strategies for working with real estate (flipping, leasing, properties in Russia and abroad); invest in businesses in different niches.
You also need to carefully check projects for investment and, if necessary, seek advice from professionals.
“In recent years, dubious organizations, which in fact are financial pyramids, have become more active in Russia. The main sign by which they can be recognized is unrealistic promises (100, 200, 300% per annum). It is clear that investing money in such stories is categorically not recommended. This is a basic safety rule,” Kuznetsova emphasized.
But even when choosing between legal and completely transparent projects, it is important to study them carefully. According to the expert, professionals can help in this matter: realtors will help you choose a liquid property, and investment brokers will develop a reasonable strategy based on the investor’s objectives.
“Nevertheless, it is important to remember: only the investor himself is responsible for all actions taken. That's why I recommend starting with education and awareness in making investment decisions. This is the basis on which you can build a stable income,” concluded Kuznetsova.
Earlier, on January 24, Capital Lab partner Evgeniy Shatov expressed the opinion that among the classic market instruments one should pay attention to shares of promising companies, as well as dividend aristocrats. It makes sense for unprepared investors to choose mainly from the shares of the largest and most stable companies, he advised. He also noted that the choice in the bond market is also quite wide: from traditional federal loan bonds to replacement bonds that can generate returns in foreign currency. In addition, you can invest in precious metals, currencies, and real estate, the expert added.
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