Analysis: what exchange assets bring the greatest return to Russian investors
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At the end of September 2019, palladium precious metal rose to a record $ 1,700 per ounce. It is not surprising that he is one of the most profitable for investors around the world. In our new material, we compiled the top assets that bring Russian investors the most profit.
Note : any investment activity carries a risk of financial losses, this should be remembered. A significant part of the assets described in the article can be purchased on the exchange - for this you need a brokerage account, you can open it online . You can study trading software and practice performing operations using test access with virtual money .
Currency: Profitable Dollar
According to last year, one of the most profitable assets for Russian investors was investing in foreign currencies. The dollar turned out to be the most profitable - over the year it has risen in price by more than 20%.
Investors who bought currency on the exchange - there the rate is much more profitable than at banks and exchangers - and then put it on a deposit at the bank, could earn more. At the end of the year, average rates on dollar deposits amounted to about 1.30%.
Another option is to buy Russian companies' Eurobonds using the currency, which could also bring an extra couple of percent profit. The euro fell in price against the dollar in 2018, so it showed the worst yield compared to the US currency (although in 2017 it turned out to be the leader in this indicator).
To perform operations on the currency exchange market, you need to open a special account - you can do this online . Then you will need to install a trading terminal (our customers use SMARTx ), in which the purchase and sale of currency and other financial instruments is already carried out.
Russian shares: fuel and energy
According to RBC, investors who invested in the most liquid stocks of Russian companies at the beginning of last year received about 12% profit by the end of the year. As you can see, the income is comparable to what you can get on the foreign exchange market, but you still need to take into account income tax - therefore, the shares were in second place in terms of profitability.
One of the most successful was the shares of companies in fuel and energy companies - this was also facilitated by rising oil prices, which reached $ 85 per barrel by the end of the year.
For example, Lukoil’s shares went up more than 48% over the year, and the company also paid dividends. Securities of NOVATEK company grew even more - by 66.3%, shareholders also received small dividend payments (yield at the level of 2%).
The dynamics of the value of Lukoil shares in recent years. Source: Moscow Exchange
Also, profits came from shares in the metallurgical industry - MMK, NLMK and Severstal.
Precious metals: futures instead of bullion
Gold and other metals are traditionally considered a reliable asset for saving funds. However, in Russia investments in bullion are subject to VAT (18%), which makes investments not very profitable. You can get around these restrictions by investing in the purchase of futures for a specific metal. Their profitability contributes to the fall of the ruble.
So, if at the end of 2017 a conditional investor would buy gold futures on the Moscow Exchange expiring in December 2018, then the investment in dollars would be unsuccessful - a year ago an ounce was worth $ 1318, and 12 months later it was $ 1249. However, the growth of the dollar against the ruble would still bring ruble income at the level of 14% (but there is also a need to pay income tax).
At the same time, in 2018 there were metals that outperformed gold in profitability. The leader was palladium, which turned out to be more expensive than platinum - investing in futures on it would bring investors more than 50% of the ruble yield.
Conclusion: Risk Reduction Trend
In 2018, the development of various low-risk investment instruments continued. For example, today, investors are available to invest in federal loan bonds with the help of individual investment accounts (wisdom over bank deposits with comparable reliability). Investments in bonds issued after January 1, 2017 are not subject to personal income tax, which is also a plus.
In addition to standard financial instruments, money on the stock exchange can be invested in so-called structural products. These are strategies created by ITI Capital analysts that can be customized to investor preferences, obtaining a balance between the level of profitability and risk. For example, there are strategies with capital protection at 100% . The level of profitability at the same time may also exceed the profit from a bank deposit.
In 2018, ITI Capital customers got the opportunity to invest in the so-called model portfolios . They are also compiled by company analysts from several securities selected for certain criteria (for example, bonds or shares of one sector of the economy). Here, the investor only needs to choose a convenient portfolio of securities, deposit money into the account and choose the term of investments (if desired, funds can be withdrawn earlier). In the future, active participation in the work of the strategy is not necessary.
These are increasingly used in the market, and in the next few years we should expect their more active distribution.
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