How to start investing for a beginner: step by step? Below we will analyze the most popular tools available when investing from scratch:
1. Bank deposits This method is considered to be the simplest and most affordable. Money is placed at interest, usually from 6% to 8% per annum. Taking into account inflation, which in 2019 amounted to 5.5%, capital on such an investment will not work. However, if you choose between keeping money under a mattress or on a bank deposit, then the second option is definitely better.
2. OFZ Federal loan bonds are debt securities issued by the government. So far, only two banks are authorized to sell OFZs: Sberbank and VTB-24. The purchase procedure itself is not much more complicated than opening a deposit. However, it makes no sense to sell bonds in the first two years of ownership, since in the first year the yield is 7.4%, plus, upon sale, you will have to pay a commission to the bank for intermediation. As a result, this reduces the overall yield on debt securities. With a one-time commission of 1.5%, it falls to 7.9% per annum, and with 1% – to 8.17%. And for the first year of ownership, the bond will generally have a yield lower than bank deposits for the same period.
3. Investments on the Internet Crowdlanding platforms such as Karma, Penenza, Alfa-stream and others are gaining popularity. As a rule, the user-friendly interface makes the registration and investment process simple and suitable even for beginners. On such platforms, entrepreneurs attract direct investment from investors without intermediaries in the form of banks. The yield can range from 15% to 30% per annum, depending on the availability of collateral or surety. With this type of investment, it is also worth remembering about diversification and not issuing a loan to only one company.
How to avoid investment risks? There can be only one answer here – no way. Even professional investors always factor in the default percentage when calculating the final return.
Therefore, a beginner should not think about how to avoid the risks of investing (this is impossible), but how not to lose too much.
We have already spoken about diversification above. You should invest in different instruments with different credit ratings, then in case of default on one of the investments, the overall economic efficiency will not suffer much.
You should also carefully consider each investment and independently analyze the possible gains or losses. In no case should you be guided by advertising promises with huge and unrealistic returns. This is usually done by financial pyramids.
Finally, and most importantly, you should never take loans in order to invest money.
Conclusion Today more and more ordinary people are thinking about financial well-being and comfortable old age. Improving the level of financial literacy is a necessary skill, because it is already clear now that you should not count on retirement. Thanks to the widespread penetration of the Internet, even beginners can start their journey in the world of passive income.