When you want to invest money, but you really don’t want to use the services of a bank deposit, there is an excellent alternative. These are VTB mutual funds, and many clients have already taken the opportunity to profitably invest their finances and earn profitably. Most often, such deposits attract new investors. While they do not yet have the accumulated experience and knowledge that distinguish professional investors, they therefore trust analysts and managers who know perfectly well how to make money work and generate income.
Dynamics of share value and NAV
The cost of a share and NAV are values that determine the attractiveness of the instrument for shareholders. A share is a deposit that is transferred to VTB Management Company for management. The organization invests funds in investment instruments (their net asset value is added up from them). The price of the share changes: the investment has paid off - the investor has made a profit.
Keep in mind that returns may be negative. VTB Capital is responsible for losses incurred by you.
Look at the dynamics of the “Share Fund” and the “Oil and Gas Sector Fund”. Both mutual funds have high (up to 85%) returns due to the growth of NAV.
TOP 10 most reliable banks in Russia according to statistics from the Central Bank of the Russian Federation
The Central Bank annually compiles a list of ratings of banking organizations based on reliability and stability. The list includes the largest, most developed financial structures in Russia, which have positive and favorable dynamics in terms of leading indicators .
The VTB Group of Companies firmly holds 3rd place in the list of the most reliable banks, behind only such major players in the financial and banking sector as Gazprombank and Sberbank.
According to data for last year 2021. The list of the most reliable banking structures operating in the Russian Federation is as follows:
| № | Name | Indicators | |||
| Assets (billion rubles) | Liquidity | Profitability | Raised capital | ||
| 1 | Sberbank | 23 313,50 | 191,30% | 19,75% | 39,60% |
| 2 | VTB | 9 442,60 | 112,80% | 10,79% | 5,00% |
| 3 | Gazprombank | 5 577,90 | 73,70% | 6,67% | 10,80% |
| 4 | VTB 24 | 3 645,80 | 73,65% | 25,76% | 31,40% |
| 5 | FC Otkritie | 2 175,13 | 128,30% | 1,60% | 7,50% |
| 6 | Rosselkhozbank | 2 979,40 | 155,30% | 1,50% | 19,70% |
| 7 | Alfa Bank | 2 648,30 | 178,20% | 3,90% | 28,10% |
| 8 | MKS (Moscow Credit Bank) | 1 752,00 | 94,00% | 4,20% | 30,20% |
| 9 | Promsvyazbank | 1 327,20 | 115,00% | 4,90% | 30,20% |
| 10 | UniCredit Bank | 1 151,30 | 126,40% | 16,00% | 8,90% |
How to invest
You can buy a share online or at the office of VTB Capital Management Company. I will give instructions for purchasing through the website www.vtbcapital-am.ru. On the main page in the “Products and .
In the tab that opens, point to the mutual fund “VTB – Share Fund” and click the “Buy online” button.
If you are not a VTB Bank client, you need to register. This can be done using passport data and TIN or through State Services.
After registration, enter your personal account information.
Enter the investment amount.
Enter your bank details.
A window will open in which you need to answer several questions.
An SMS with a confirmation code will be sent to your phone number.
Select the payment method (VTB card or another bank).
Enter your card details and confirm the purchase.
Investment conditions
Before deciding to purchase shares of VTB Capital mutual funds, it would be a good idea to find out the investment conditions. And they are:
- online purchase amount – from 5,000 rubles for new clients and 1,000 rubles for existing shareholders;
- premium - when investing through PJSC VTB Bank and OTP Bank - 0%, in other cases 1-1.5%;
- discount (fee for cashing out) – depends on the period of holding the shares and is 2% (less than 180 days), 1.5% (up to 1 year) and 1% (over 1 year);
- manager's remuneration - no more than 1% of NAV (in 2021 it was 0.22%).
At the same time, any purchased shares of VTB Capital Investment Management mutual funds can be exchanged free of charge for shares of other funds that are more promising from your point of view. It is profitable to make an exchange when you have received income from the mutual fund - then you can sell your share at a higher price. But you need to exchange for shares that have fallen in price - then you will buy more shares for the same money.
I recommend holding shares for at least 3 years. Then you will pay a smaller commission for repayment, and will also receive the right to a tax deduction of 3,000,000 rubles for each year.
And here’s another interesting article: What are Eurobonds, how and how much can you earn on them?
Feedback from investors
Feedback from shareholders is positive: the mutual fund’s profitability and service fully satisfy the clients of VTB Capital Management Company.
reference Information
VTB has a widely developed network of branches and ATMs. Bank branches are present in 380 cities throughout Russia. The bank specializes in servicing legal entities and private clients. It offers a wide range of financial services, including lending, mortgages, deposits, settlement and cash services and many others.
The main office of the credit institution is located in Moscow at Naberezhnaya Presnenskaya, building 12. The bank's hotline - 8 (800) 100-24-24 - is a telephone number for private clients. Legal entities can use a separate hotline, number 8 (800) 200-77-99. The official website is located on the Internet at https://www.vtb.ru.
Alternatives
Mutual Fund "Share Fund" is a high-risk instrument. You can both earn and lose. For those who are not yet ready for such a risk, I recommend the following financial assets:
- OFZ, municipal bonds;
- “VTB – Treasury Fund” – bond mutual fund;
- precious metals;
- conservative options trading strategies.
If you are aimed at venture investments with maximum income, then the best option is the American stock market (return is not limited).
Mutual Fund Management Strategies
VTB Capital has three types of strategies:
- Moderate. Under this strategic approach, 70% of savings are invested in bonds. The remaining 30% is distributed between purchasing shares and working with stock indices. The level of risk is lower than with aggressive behavior. Income is higher than conservative.
- Conservative. With this strategy, about 80% is spent on buying bonds, and 20% is divided between index and equity organizations. Since the main goal of the conservative approach is to preserve savings, the risks and profits are lower than with other strategies.
- Aggressive. The strategy is aimed at obtaining maximum income, but at the same time the risk of losing savings is high. This type of management consists of accurate and competent analytical calculation of future stock market indicators. With this approach, most of the money is invested in working with stocks and indices.
Newbie
Making your first investment is a difficult step for a beginner. In order for novice investors to understand the principle of operation of the “Share Fund”, I will consider mutual funds as such.
What is a mutual fund and why is it needed?
Mutual investment funds (UIFs) are a type of collective investment. A group of people (shareholders) gives funds to an organization (management company), which invests them in assets.
If the value of the share increases, investors receive income according to the investment. This is a relatively simple way to invest in stocks and does not require the skills of a professional investor.
Advantages and disadvantages
It is difficult for a beginner to independently manage capital and monitor many indicators. The advantage of such investments is that they do not require knowledge and skills. And the entry threshold of 1000 rubles makes them accessible to the masses.
Although the profitability of mutual funds of shares is higher than the deposit one, the investor’s profit is “eaten up” by a commission of up to 9%. It makes no sense for experienced investors to invest in this asset.
Risks
Investments always involve risk. VTB mutual funds are no exception. Choosing a tool without assessing the degree of risk is stupid. Now I will tell you what you need to pay attention to when choosing mutual funds.
What affects the risk level of a mutual fund
First, strategy. If the fund is invested in stocks, the riskiness reaches its maximum. At the same time, bond mutual funds have virtually zero risk for the investor.
The second, but no less important factor is NAV. The net asset value falls - the share mutual fund falls. For conservative VTB mutual funds, the situation is simpler: debt securities have a fixed return.
What can be done to reduce risks
Follow the principle of portfolio diversification. That is, divide investment capital into several assets. For example, invest in the “Share Fund” and buy a share of the “Treasury Fund”. The minus on the first mutual fund will be paid off by the income of the second fund. The more diverse the portfolio, the lower the risk.
What are the pitfalls and risks?
The activities of mutual funds are regulated by law, according to which all assets are kept in a special storage facility. It keeps records of all shareholders and the size of their shares. If the management company refuses to service the fund, the shares do not disappear anywhere; information about them remains in storage. At the same time, the work of mutual funds has a number of features that increase the risks of owning this financial instrument:
- The shares are not insured by the state and are not included in the insurance system.
- Profitability is not guaranteed. The level of income is influenced by many factors: the state of the world economy, crisis events, oil prices, and exchange rates. The qualifications and investment experience of the management company’s employees are also of great importance. These moments can lead to a rise in price or fall in price of the share.
- Government regulation imposes restrictions on the placement of assets.
- If the stock market falls sharply, the mutual fund cannot convert assets into money, which leads to a loss for the shareholder.
- Long-term registration of the sale of a share in a negative scenario for the development of market conditions.
- The management company receives remuneration regardless of the results of its activities.
To determine whether investing in a particular fund will be profitable, it is advisable to study the profitability statistics over the past few years and evaluate the results of its activities.
Is it worth taking
Expert opinion
Vladimir Silchenko
Private investor, stock market expert and author of the Capitalist blog
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Definitely. Of all open mutual funds, VTB – Share Fund showed the highest profitability. For 3 years, the dynamics of the share have not had any drawdowns, which gives hope for further growth. This asset may be meaningless for experienced investors with a capital of 1 million rubles or more, but for the average citizen it is almost impossible to find a better option.
Review of popular funds from VTB
Let's look at the three most popular mutual funds from VTB, which are based on shares. All of them are engaged in reinvesting dividends, and therefore are not suitable for those who rely on passive income.
VTBX – Moscow Exchange Index
The fund was registered with the Central Bank on February 10, 2020.
BPIF invests in ordinary and preferred shares, as well as depositary receipts for them, which are part of the Moscow Exchange index. Tracks the dynamics of the Moscow Exchange total return index “gross”.
