An investor should determine comfortable tools for preserving and increasing savings – from deposits to stock market instruments based on their goals and expectations for profitability. Maksim Biryukov, senior analyst at Alfa Capital Management Company, told Izvestia about this on Thursday, October 14th.
If you collect an investment portfolio from several mutual investment funds (MIFs), this will potentially allow not only to protect investments more reliably, but also to make money on different asset classes – regardless of what happens in the markets, he stressed.
Earlier in the day, the press secretary of the Russian president, Dmitry Peskov, told reporters that the government was clearly recording inflation trends. On the eve of the Ministry of Economic Development and Trade reported that the events taking place in the external and internal markets for food and consumer goods, led to the need to adjust the inflation estimate at the end of the year. The ministry raised it by 1.6 percentage points to 7.4% from the previously predicted 5.8%.
The Kremlin stated that the post-crisis trends in the world economy contributed to the rise in prices, but the Russian Federation largely manages to amortize negative processes.
According to Biryukov, simply buying stocks or bonds, with which many people usually associate money in the stock market, the choice of assets for investment is by no means limited. The analyst “categorically does not advise beginners to start with investments in securities of individual issuers”, since such an approach, according to statistics, brings “disappointing” results for most investors.
He noted that one of the widely available tools suitable even for novice investors are mutual funds, which allow getting diversified exposure to individual industries or entire markets without having to delve into the news and performance of individual companies.
“The largest management companies have mutual funds for a wide market of shares, ruble and foreign currency bonds, shares of companies in certain sectors, gold, oil and other areas. The investor can only collect a portfolio of such funds, ”he added.
According to the specialist, mutual funds have another “significant advantage” over the securities of individual companies – when investing for a period of more than three years, the shareholder can avoid paying income tax on income from investment in mutual funds.
The analyst also recommends diversifying investments. To buy only gold or individual stocks, he said, is “too risky”, the prices of individual assets can be “very volatile.” To collect a “more or less balanced portfolio”, an investor needs to buy securities of “many companies from different sectors and geography of activity.”
If you invest through mutual funds, then everything is much easier – after all, even in the portfolio of one fund there can be tens or even hundreds of different issuers, he stressed. Some combine different classes of assets – for example, bonds and stocks or securities of foreign funds, OFZ, the specialist added.
To diversify investments, you can regularly buy shares of just a few mutual funds: for example, part of the funds can be spent on the purchase of mutual funds investing in the acquisition of Russian and American stocks (say, the S&P 500 index), and some into more conservative strategies, such as bond mutual funds and gold, Biryukov concluded.