Concept and forms of collective investment institutions

Collective investments are the most common type of investment. Their official history begins in the 19th century. At the everyday level, collective investments have existed since time immemorial.

Purchasing tools or livestock for joint work - such collective investments have been common for many hundreds of years. In modern society, financial institutions have long mastered the funds of the population, accumulating these funds in various funds and using them for large investments. In Russia, this form of investment is not yet so significant, but in European countries and the United States, the population, including pensioners, massively invests their money in various collective investment funds that are managed by professionals.

Collective investment is also common among legal entities. There are several reasons for this:

1. Large investment projects are difficult to “raise” for one investor, so several are united, creating an investment pool, joint venture or other legal form to which investment management functions are transferred to implement a specific investment project.
2. Investment projects always have some level of risk. Collective investing reduces the risks of each individual investor and increases the reliability of their investments.
3. The “entrance ticket” to some investment funds is quite large, so joint investment of two or more companies allows you to overcome the threshold for entry into such funds.

The following organizational forms of collective investment have become widespread in Russia:

• Mutual investment funds (UIF);
• Joint-stock investment funds;
• Non-state pension funds;
• General Funds Banking Management;
• Investment banks;
• Credit unions;
• Consumer societies;
• Investment partnerships.

The most common form is mutual funds.

Mutual funds were created as an alternative to collective investment funds in the form of legal entities, which, according to Russian legislation, are subject to double taxation. A mutual fund is a property form of capital, which, not being a legal entity, does not have a tax base. An investor, purchasing a share in a fund, owns part of its property. The property of a mutual fund is in trust management by a special company, whose task is to derive profit from the placement of this property in investment projects. Areas of investment are determined by the state, and the investment process is regulated and under the control of supervisory authorities.

What is collective investment

The essence of this type of investment is that a fund is created that accepts money from small investors for trust management under certain conditions.
The holders are individuals, individual entrepreneurs and representatives of small businesses. They have small amounts, but at the same time do not want to put them on deposit, since it does not bring the desired profitability. Collective investment creates the basis for the accumulation of these funds. Despite the small size of the contribution, thanks to their large number (economies of scale), they become a real resource that can be successfully invested in various projects. It is thanks to the concentration of finances that the opportunity to earn money arises - otherwise, the individual efforts of investors do not produce a tangible effect due to their fragmentation.

The principle of operation of a collective investment fund is that it collects funds from different investors under certain conditions. Each investor signs an agreement that defines the investment period, expected profitability, payment terms, and risk distribution.

Since the fund has the ability to attract finance from all over the country or from deposit holders in other countries, thanks to joint efforts the company becomes attractive to large market participants. The money received is invested in various projects in accordance with the principles of risk distribution.

The asset management structure includes the following elements:

• the management company is the most important link, it is the one that controls the receipt and expenditure of funds from the fund, decides where exactly they should be invested;
• the depositary keeps records of the fund's property and monitors the work of the management company;
• the registrar records the ownership rights of each holder to his share;
• The auditor controls the reporting and checks the management company.

Joint Stock Investment Fund

A joint stock investment fund is nothing more than an open joint stock company of investors. The fund's activities are licensed by the state and are focused on making a profit by transferring its property into trust management of a management company.

Investors of such a fund are subject to double taxation: they pay income tax as a joint stock company; income tax as individuals. Venture capital and mortgage activities are not permitted for these funds.

Characteristic signs

To determine collective investment, there are a number of signs that can be observed regardless of the specific form of this type of financial activity:

• funds are raised mainly by signing contracts or placing securities of developing companies on free sale;
• the fund's main activity is investing in securities;
• the basis of profit is interest, dividends from transactions;
• this profit is distributed among fund participants in accordance with the size of their contribution.

Compared to other investment methods (for example, placing money in venture funds), the collective method of financial investments has its own differences:

1. All deposits of holders are transferred to the total mass, the profitability and risk indicators for which are averaged.
2. Subsequently, profitability and loss are recalculated according to average parameters, distributed evenly among all investors (taking into account the size of their investments).
3. Investors bear the risks themselves, i.e. they transfer funds under their own responsibility.
4. The fund does not promise any specific (fixed) payments, but only indicates a general profitability forecast (usually in percentage per annum).
5. The deposit holder has the right to independently choose the direction of investment before signing the agreement. He must indicate in which industries he believes the fund should invest his share. This allows you to reduce the risk of loss if you have the appropriate professional knowledge.

Investing in the 21st century: where do modern investors invest their capital?

With the advent of the 21st century, priorities in the business environment continue to change. Modern technologies are being introduced everywhere. Digitalization and digital technologies are becoming one of the most popular areas. This year, the new reality appeared before us in all its glory - amid the pandemic and coronavirus crisis, business has changed beyond recognition: online learning, remote work, communication, virtual signing of contracts using an electronic digital signature. Everything that previously seemed impossible to us without personal presence is now becoming real. New challenges of our time have forced potential investors to reconsider their views. Taking into account the all-consuming inflation, money cannot lie, it simply must work! In this article we will look at the main areas for investing, taking into account modern realities.

Venture investments in innovative startups

One of the objects for investment are unique startups, which allow you to invest in a project and become its shareholder. The financial risk of such investments is usually proportional to the stage of development of the startup:

· initial (implies investments at the very initial stage, when there is a unique idea and the company has not yet been registered). This is one of the riskiest periods of investing in a startup; investments at this stage are only possible if you clearly understand that the project is truly innovative and are ready to personally participate in the process of managing a new project at the level of a business consultant in order to protect the startup from mistakes the initial stage. One of the advantages here is that by investing at this stage, you can get the maximum share in the company for minimal investments);

· expansion of the project (investments in an innovative startup occur at a time when the project has relatively recently passed the break-even point, perhaps brings minimal profit, but requires substantial investments in its further development - expansion of production, opening of representative offices, etc. In practice, it is At this stage, the management of young projects is ready to actively attract venture capital investments and is expanding the founders. However, the management of startups already knows the value of their business and will actively discuss the amount of venture investment and share in the company. From the investor’s point of view, investments at this stage are less risky than at the initial stage The new project has already been tested, there is financial documentation on the basis of which the prospects of the project can be assessed;

· anti-crisis investing (at this stage, venture investments are allocated if the investor understands the main problem of a crisis in a given startup. For example, if the project is truly innovative, it has good potential, but force majeure circumstances such as a pandemic, breakdown of expensive equipment or incompetent management a young project has led to a pre-bankruptcy state. Then venture investments are used to cover the startup’s debts, establish processes for the further development of the project and “reboot” it. The financial risk for the investor at this stage is quite high, extensive experience in anti-crisis management of enterprises, a clear understanding of the way out is required crisis, the presence of a development strategy for a young enterprise;

Accordingly, it is necessary to understand that investing in startups is a highly risky undertaking. It is more suitable for those investors who understand the current realities of business, have experience in the financial market and consider themselves legally “savvy” people.

If the idea of ​​a startup is truly unique, and it seems to you that you have found a “nugget”, then you should not rejoice ahead of time - competition in any sector of the economy and mistakes in the development of a new project can kill any “business sprout in the bud.”

The most important point is the choice of the startup’s field of activity. For example, the most popular areas in recent years are: IT projects (new software, programming, applications for iPhone and iPad), artificial intelligence, virtual and augmented reality, big data and IoT, online training (from advanced training courses to distance universities), transport and logistics projects (delivery services, courier networks).

Where can you find innovative startups? There are two main ways to find a startup:

· contact venture funds Sberbank-500, AltaIR Seed Fund, etc. (it should be understood that the minimum entry threshold sometimes exceeds 30 thousand euros; however, in the case of full interaction, you will not need to independently search for innovative projects);

· personal search (business partners, acquaintances); You should not think that former colleagues, friends and distant relatives are the best partners. Business is business.

Investing in startups will not bring quick returns. As a rule, beneficiaries receive the first dividends after several years of project activity, subject to its successful start and further systematic development.

Long-term investments in mutual funds

Another type of investment is investing in mutual funds. Investors buy so-called shares, which are accumulated in a mutual fund under the guidance of financial experts. Their task is to wisely invest your capital in stocks, precious metals, the commodity market and much more. There are many types of mutual funds: securities mutual funds, industry funds, venture funds, index funds, and real estate funds.

Investments in mutual funds are suitable for young investors who do not have extensive experience in the financial market. One of the central advantages of investing in mutual funds is their low level of financial risk. Your capital is invested by experts from the management company (MC). In this case, it is the management company that guarantees the safety of your financial assets. As a rule, their activities are regulated by the legislation of the Russian Federation and controlled by special registrars and depositories.

However, along with this, not all “cool” experts of management companies are able to invest your money so competently that you get a solid profit. The human factor and expert potential have not been canceled. Accordingly, the amount of your income when investing in mutual funds depends on the choice of the management company and mutual fund, and the business reputation of the management company.

In addition, do not forget that investing in mutual funds is a long-term investment. The amount of your profitability depends on the length of time you work with your share. You can get the minimum profit only after a year, and with each subsequent year your profitability will increase. But no one has canceled inflation!

Cryptocurrency: to buy or not to buy?

It makes no sense to explain what mining and virtual currency in the form of bitcoins or altcoins are, since everyone reading this article has come across information about cryptocurrency more than once. Let's look at the pros and cons of investing in virtual money.

According to experts from a number of cryptocurrency exchanges, despite the growth in cryptocurrency capitalization over the past couple of years, it should be remembered that Bitcoin is more liquid and resistant to price fluctuations than its alternatives - altcoins.

How can you make money on cryptocurrency? Firstly, carry out trading (trading bitcoins and altcoins, “playing” on their rate); Secondly, invest in cryptocurrency (a less profitable option than trading - the investor essentially gives up daily play on the cryptocurrency exchange rate, losing the opportunity to increase income. On the other hand, you do not need to be an expert and know all the intricacies of trading. Thirdly, engage in mining (a more risky way to make money on cryptocurrency). Creating “farms” is also expensive - it requires renting space, equipment, and 24-hour electricity, so investing in mining “farms” has an unreasonably high financial risk and unnecessary expenses. cryptocurrency using staking, which is similar to mining, only “farms" are not used. The profitability from staking depends on the size of the investment, the annual interest rate on PoS and experience in this area. By the way, staking is somewhat reminiscent of a bank deposit (you make a deposit against corresponding interest, respectively, the higher the deposit, the higher your income).

In a number of European countries, you can absolutely legally make any purchases by paying with cryptocurrency: from a plane ticket to real estate. According to many investors, investing in Bitcoin can bring a solid income (if you have doubts about this, just analyze the dynamics of altcoins and Bitcoin over the past three years. Despite sharp declines, similar ups have occurred).

Investments in cryptocurrency carry high financial risk. Related:

· lack of any legislative regulation of the market;

· abundance of scammers and hackers (if someone gains access to your electronic wallet, they will be able to completely deprive you of all your capital);

· lack of necessary experience in mining, trading and staking cryptocurrency.

Another important point that must be taken into account if you want to invest in bitcoins is changes in Russian legislation. On January 1, 2021, a new Federal Law No. 259 of July 31, 2020, regulating activities with digital financial assets on the territory of the Russian Federation, comes into force in Russia. Accordingly, in 2021, the use of cryptocurrency in the Russian Federation is officially permitted and will be controlled by the state, but on the other hand, it is now prohibited to use bitcoins in exchange for any goods or services. It is quite possible that the extraction and use of cryptocurrency will be equated to property.

Purchase of securities

Investments in securities are one of the oldest types of investment instruments. You can invest your capital in: shares, bills, bonds, bank certificates, options, swaps.

Buying shares became widely known back in the 90s, when thousands of Russians suffered as a result of large-scale frauds of well-known financial pyramids. Such moments, unfortunately, served as “anti-advertising”. However, if you do not pay attention to this stereotype, it should be noted that purchasing shares of reputable industrial enterprises has minimal financial risk, but the profit in this case cannot be called solid.

Remember the main rule of investors - the higher the risk, the higher the return. When buying shares, there are two ways to work with them:

· you purchase shares with the expectation that their value will increase over a period of 5+ years;

· you are buying shares on which companies pay annual dividends, the amount of which depends on the annual profit of the company whose shares you purchased;

· you work with stock markets, actively buy and sell securities (trading). Your goal is to buy cheaper and sell more expensive. In this case, the difference will be your profit.

There are many pitfalls when investing in stocks:

· you will need a lot of time to analyze the market to work independently with stock markets; without such knowledge, the amount of your income will not be significant;

· if you are trying to get only average market returns, you should pay attention to “blue chips” - securities of large, city-forming companies in the country that are important for the Russian economy;

· To trade stocks competently and earn income from differences in securities rates, you need a broker who understands everything about the subtle game of the stock market. However, past performance is no guarantee of your future performance.

· From April 1, 2021, the law on the status of a qualified investor will come into force, which will significantly affect the interests of novice stock market players who will be able to invest capital only in shares from the quotation lists of exchanges, OFZs, and simple bonds of Russian issuers.

Another type of securities is bonds. They come in two types - government (government loans) and commercial. You can read more about investing in bonds in the article (LINK). You purchase bonds for a certain period (usually at least a year), receiving a monthly fixed coupon profit on average, 3-18% per annum. After they are repaid, the amount of your investment is returned to you. In this way, your capital is saved from inflation (for bonds with a maturity of no more than 1 year) and you receive a profit every month.

Investing in major types of securities involves financial risk. Only in the case of investments, for example, in startups or cryptocurrency, your risk is prohibitively higher.

Investing in accounts receivable

Investing in overdue accounts receivable is one of the modern promising types of capital investment. “Receivable”, like bonds, is, in fact, a debt obligation. And the financial risk of these two types of investment is approximately at the same level. It is worth making a reservation if we are talking about a substantial amount of passive income. Let’s not forget the investor’s rule, which was already mentioned above: “The higher the risk, the higher the return.” Suppose, if you decide to invest in federal loan bonds, therefore, the level of your financial risk will still be lower than when purchasing “receivables”, however, the income that you will receive from investing in government bonds will also be very small. If we contrast investments in accounts receivable with the purchase of commercial bonds, then their coupon profit will already be 15% or more. Accordingly, your risk that the company you have chosen, whose bonds you purchased will default, will also increase.

The popularity of purchasing overdue receivables is growing, even despite the coronavirus crisis. Why has investor interest in “receivables” increased noticeably? It’s simple: the unfavorable economic situation caused a sharp surge in receivables, due to which a stream of liquid “receivables” from large companies “poured” into the market. Accordingly, many investors decided to invest their capital in fairly profitable debt obligations and, after the debt collection procedure, get their money back and passive income.

Despite all the advantages, investing in the “receivables” of enterprises is a financially risky undertaking. If you invest in company debts yourself, then your risk increases several times - when working with electronic trading platforms, you will have to personally select a specific lot (in the form of a “receivable” of a company), assess the financial level of the debtor, the size of its assets , legal burden, the likelihood of bankruptcy, draw up a strategy for repaying the debt obligation, and finally, be ready to take part in all stages of debt collection.

If you want to reduce your financial risk and save yourself from long negotiations with the beneficiaries of debtor enterprises and related litigation, contact investment companies specializing in working with the debt market. For example, if you contact a financial company, its experts will offer you ready-made projects for investment (liquid “receivables” with a minimum collection period and a good discount amount). It should be noted that the company handles all processes itself, right up to the purchase and debt collection process. Accordingly, after signing the assignment agreement, you will only have to wait for the debt to be repaid and receive the invested amount and passive income. For the convenience of investors, there is the possibility of collective investments - you and several other people buy the “receivables” of a certain company.

We have looked at several types of investing your capital. Which one you prefer is your choice!

Forms of collective investment

Today, the collective investment market is represented in the form of several forms of companies, which are defined in accordance with the requirements of federal legislation. These are private pension funds, mutual funds, AIFs, credit organizations and investment banks.

In Russia today there is a funded pension system. This means that the future pensioner can manage part of the insurance contributions independently, sending it to a state or non-state pension fund. The latter is obliged to transfer them to the management company (one or more). And the company, in turn, invests the funds received to increase them.

Investors in such funds can be private individuals (future retirees, interested parties), entrepreneurs or commercial organizations. As a rule, such companies offer low returns (about 10-12% per annum). However, their work is carefully regulated by the state, which is interested in preserving the funded part of the pension, and therefore the reliability of investments increases significantly.

Joint stock and mutual investment funds

The main task of these companies is to actively attract funds from citizens to invest in various projects. Both equity and mutual funds collect money from individuals who do not have complete financial information. It is assumed that through the company's mediation, its clients will receive passive income and give part of the profit in the form of interest.

The difference between an AIF and a mutual fund is that the first is a joint-stock company, i.e. a legal entity engaged in investing finances in the purchase of shares. A mutual fund is not registered as a legal entity; formally it only has an individual designation, which allows it to be distinguished from a number of similar organizations. A mutual fund attracts funds and issues an investment share (a security that confirms the investor’s right to a portion of the profit, like a share). An AIF can only place shares other than ordinary registered ones.

Credit organizations and unions

This refers to consumer cooperatives, which, like banks, provide lending services. Today in Russia there are more than 100 such organizations, the total value of assets has reached 30 billion rubles. A credit union is assigned the status of a non-profit organization, i.e. formally, it does not aim to make a profit.

However, a consumer cooperative is always registered as a legal entity, and in practice it earns money through lending activities. Therefore, the union is forced to regularly raise funds from the population at high interest rates (10-15% per annum and higher). This is what makes them much more attractive than regular banks.

These are specialized credit organizations whose main activity is not related to providing loans, but to conducting various operations on the stock exchange. Along with this, investment banks provide the following types of services:

• assistance in the issue and sale of shares and bonds;
• provision of financial guarantees during the placement of these securities;
• credit financing (issuance of bills, bonds, loans);
• dealer and brokerage services;
• asset and fund management, etc.

Typically, investment banks work with large investors, but to attract additional funds they may also be interested in individuals with small savings.

What it is

Investing the money of several or many investors in commercial projects that generate profit is joint or collective investment.
The first forms appeared in 1822 in Belgium, then France and Switzerland. These were mutual funds. In the United States, the first mutual investment fund appeared in 1924 - Massachusetts Investors Trust.

In 1990, the first ETF emerged - an index fund whose shares are listed on the stock exchange as an ordinary asset. In Russia, the first mutual funds appeared in the second half of the 1990s.

How are they produced?

This is a business for lazy investors. The essence of joint investment is that shareholders entrust their funds to a professional market participant, who invests them in various assets in order to make a profit.

Any assets not prohibited by law:

• stock market;
• real estate;
• commodity market.

When investing together, shareholders (investors) entrust their money to a fund or management company. They develop strategies and place funds in assets. When a profit is received, income is distributed among shareholders minus remuneration to the fund itself and operating expenses.

The joint investment market operates in the trillions of dollars. The largest mutual fund in the world, American Black Rock, has client assets of $6.84 trillion. (August 2019).

Difference from crowdfunding

The purpose of crowdfunding is the informal collection of donations for any project in the field of creativity (painting, music, etc.), business, or any other type that requires financing. Crowdfunding does not necessarily set the goal of paying off the project and making a profit.

Example - a sculptor announced a collection of money for a monument to a historical figure. Community project. People and organizations transfer money, the initiative group, together with the sculptor, makes and installs a monument.

A student can raise money for his studies, a young musician can raise money for the release of a new video. Kickstarter is the largest foreign platform for authors who are looking for money for their projects.

In Russia, such activities are not regulated by law.

The official purpose of joint investments is to generate profits for investors. This is the main difference from crowdfunding.

Advantages and disadvantages of collective investment

Collective investors with insignificant assets act as market participants only through an intermediary (for example, a mutual fund or a credit institution). Such features of work have both their advantages and disadvantages.

The main advantages include the following:

1. The opportunity to receive real income, which almost always outpaces inflation and even the highest rates on bank deposits.
2. Professional financial management, thanks to the knowledge and experience of investors managing a collective investment fund. In fact, this is a major advantage because a private investor often does not have sufficient knowledge to make sound financial decisions.
3. Distribution (diversification) of risks. Since small investors do not have sufficient funds to invest in different projects, they are almost never able to distribute their finances. This creates a potential threat of losing all savings, because the main rule of investing is the distribution of possible risks.
4. Another advantage is reliability. The collective investment fund strictly follows the requirements of the law, because otherwise the regulatory authorities will revoke its license. In such situations, investors often have the opportunity to save funds - for example, finances from one non-state pension fund are transferred to another.
5. By raising money from collective investors, the fund offers to conclude an agreement on especially favorable terms. This is due to the fact that managing joint investments involves lower costs than the costs associated with individual servicing of each deposit.

Based on this analysis, we can say that the main advantages of collective investment come down to professional management and reliable risk diversification, which is almost impossible to achieve in cases of investing alone. However, this type of financial activity also has some disadvantages. They are associated with the following nuances:

1. Private investors receive only passive income (with rare exceptions). On the one hand, this eliminates the need to independently study the market, which takes a lot of time and effort. But on the other hand, a small investor does not receive relevant experience that could be useful to him in the future.
2. An important drawback is related to the difficulty of choosing a specific collective investment fund. Each account holder needs to choose only trusted companies that have been on the market for a long time and have already managed to gain trust among clients. Otherwise, there is a threat of losing a significant part of the deposit.

Therefore, we can say that collective investment of funds is the main way to make a profit for a private investor who has small savings. In the future, you can diversify the income received by reinvesting it in different funds, in accordance with the rules of risk management.

Investments are investments of finances into a project with the goal of making a profit. Economics views investment as a process that reflects changes in value. In simple terms, investment is saving money in reserve for the future, which allows you to make a profit after some time. Investing in securities deserves special attention, as one of the most promising and accepted in the global economic community. There are individual and collective investments in the securities market. In the first case, a person buys assets on the primary, secondary market, over-the-counter or on an exchange. Collective investing involves the purchase of shares, shares of relevant funds, companies.

Categories of investment methods

Investments are divided according to several main parameters:

• investment objects;
• investment terms;
• level of risk;
• liquidity.

Investment objects

The main classification that allows you to determine what exactly a particular investor is investing in

• speculative - shares of enterprises, currency and other objects that generate profit when sold after an increase in value;
• financial - financial market instruments that generate profit through exchange transactions;
• real - real estate, other material assets, investments in business or repurchase of copyright;
• venture - investments in potentially successful projects and startups.

Each type of investment has its own characteristics and requires a completely different approach.

Investment term

When investing money, the investor initially expects a certain period of return. According to this indicator, investments are divided into:

• short-term - with expectation of results within a year;
• medium-term - payback time 1-5 years;
• long-term - the expectation of obtaining results over a period of 5 years or more.

Beginning investors with small investment amounts often choose the first option - they need to quickly return the money they invested in order to invest it again in other projects. Investors with large and medium capital have the opportunity not to be limited to one type of investment and choose several options with different return periods.

In addition to the listed types, there are also annuity investments. This type of investment allows the investor to receive regular profits, which can be fixed or depend on certain circumstances.

Risk level and return

These two concepts are interrelated - the higher the expected return on an investment, the higher the risk of losing the investment. It is advisable, if possible, to allocate funds to projects whose risk level differs by:

• small - conservative investments in deposits and securities, the income on which is fixed;
• medium - moderate risk and the same level of income are provided by shares, real estate, and some other objects;
• large - aggressive high-yield investment in objects whose value largely depends on market fluctuations.

The risk is the probability of loss of capital, lost profits, or failure to receive expected income. But the possible profit from high-risk investments can significantly exceed the income received from conservative types.

Asset liquidity

A very important indicator for the market. Depends on how quickly the asset can be sold. Based on the level of liquidity, investments are divided into:

• highly liquid - in-demand assets with quick sale, for which you can always find a buyer, and have a minimal level of risk;
• low-liquidity - objects with long sales and slow price changes, which can lead to losses if urgently sold;
• illiquid - assets with a long sale; the cost upon sale may be either less or more than the original.

Illiquid assets do not necessarily include those that will not generate profit. For example, premium class real estate is gradually increasing in price, but it is quite difficult to quickly find a buyer for such an object and receive a profit from the investment.

Impact on society

To this day, economics has already accumulated a large stock of knowledge devoted to investing in all its aspects. Based on the example of investors past and present, we can confidently say that collective investing has many significant advantages. First of all, there is a benefit for the population of the country where the economy is developing in this direction. The reason is that collective investment in Russia attracts capital investments into the state from various sources, which stabilizes the economy and provokes its development.

With increased investment, the volume of taxes collected increases, which has a positive effect on social programs and budget companies financed by the government of the country. This increases demand for government-issued securities, but lowers the cost of borrowing. Individual citizens receive tools to increase income and new ways to save existing funds.

How they are trying to develop a culture of investment in us now

If you touched a little on the topic of investment 10 years ago, you saw something like the following interfaces:

This is WebQUIK - a trading terminal

Yes, it was normal software for professionals, but it would never solve the problem of making investing fun for everyone. For the average person, the interface was too complex, and now it is even more difficult to perceive than then, because every person in his pocket has convenient mobile applications with thoughtful usability and familiar websites, where everything is also good with UX/UI. Not everyone will be ready to understand such a tabular interface and live on forums.

Terminals like MetaTrader and QUIK began their journey as installable programs for Windows. When the Internet spread everywhere, they decided to transfer them to web applications, but without adapting the UX/UI.

Almost all banks (Sberbank, PSB, BKS, VTB) still offer the QUIK terminal and its web version as a tool for professional investing, but they had to develop new applications for the mass market.

The growth of home investment in Russia occurred in 2017-2018. Bank deposit rates decreased, and people began to look for other options. This was followed by a fantastic growth in shares of technology companies. You could buy a Tesla share at the beginning of 2021 for $50 and sell it at the end of 2021 for $3 thousand (at old prices). The boom happened in 2021 - from January to November the number of private investors more than doubled.

Also, since 2015, the topic of IIS (individual investment accounts) has been developing - it was possible to make a contribution and receive a return next year: for example, from 400 thousand, return 52 thousand rubles. Or you could get a tax break - all income that came from investments was not subject to income tax at all. Since 2017, the amount of possible deposits has increased to 1 million.

These changes in the market created the conditions for more people to get into trading and investing. But it was necessary to work more closely with the population, so active campaigning began.

The first direction is working with financial literacy. The Bank of Russia, Sberbank, Tinkoff, Moscow Exchange and others launched their educational portals. Their tasks were broader: working with financial literacy, teaching how to recognize scammers and saving money not using the “stocking and under the mattress” method.

The second direction in which investment platforms continue to operate is attracting new users. Both through soft formats like the same investment courses, and through direct sales through cold calls.

And all this is also preparation for the main change - banks have relaunched their tools for working with investments.

VTB competition - come up with a name for your voice assistant and win an Iphone 12

Investments and economics

Investment needs can be satisfied by various methods. Their diversity makes it possible to protect the interests of investors and stabilize the economy, which creates confidence in it on the part of individuals. Collective investment has the most positive impact on the financial situation in the country, while at the same time intensifies competition between different structures wishing to receive money from the population for further work on stock exchanges.

The development of investment in the future should provoke growth in the shares of enterprises that attract the most impressive funds. True, at the moment experts agree that forms of collective investment in Russia are not well developed, so money cannot work with full efficiency. Efficiency can be increased if the economic and social situation in the country is improved, which will provoke the growth of the financial market.

General funds of banking management

General funds of banking management are formed from the property of depositors on the basis of common ownership, and are transferred to the bank for trust management.

Unlike mutual funds, this form of collective investment has wider investment opportunities; in fact, they can invest in any industry or investment object in the form of real or financial investments, in domestic and foreign securities and other assets. A limitation to the widespread use of this method of collective investment is the licensing of such activities by the Central Bank of Russia and the inability to circulate certificates issued to fund participants on the market.

What does it take to achieve success?

Analysts and financiers agree that in our country the collective investment market will begin to actively grow when corporate securities finally cease to be subject to double taxation. Another aspect is the insufficient choice of objects in which to invest money. To improve the situation, the government must take measures to expand the securities market.

The country also lacks laws regulating collective investment. These must be regulations that reflect the real state of affairs on the securities market, that is, corresponding to the requirements of exchange players. Collective investment needs unification and additional mechanisms to protect the interests of investors and their rights. Development is possible if mechanisms appear that increase reliability.

Not all at once

However, even if everything described above is put into effect, collective investment institutions will need some time to really develop. Management companies must become professionals who can cope well with the situation on the stock market; they must learn to navigate constantly changing conditions.

The introduction of new legislation will allow, after some time, to achieve:

• impressive revenue from funds placed in profitable assets;
• control over the activities of investment funds;
• competition for investors and their funds between different firms, as well as between banks involved in this system.

Key Benefits

Collective forms of investment have long been tested at the global level and have shown themselves to be a profitable method of doing business when a potential investor has small funds, but is ready to invest them in some business that potentially looks profitable. At the same time, such a person gains access to the advantages inherent in large structures: banks, funds, insurers.

Collective forms of investment involve asset management by professionals. This is the first and most significant advantage of this method of making money work. If the funds of numerous participants are controlled centrally by highly qualified specialists, certified to work in the financial sector, with many years of experience, there is no doubt that risks will be minimized and profits will be the highest possible.

Important factors: timing and clarity

Modern collective investment institutions value time as the most valuable human resource. This means that investors, if they trust a special purpose company to manage their resources, expect efficiency, but protect their time. Turning to funds allows you to avoid studying the market situation and mastering the mechanisms by which you can make money on the stock exchange. It is believed that this is an important advantage of collective investment, since management specialists spend all their working time precisely on monitoring the situation and adjusting it in the right direction.

Transparency, in turn, involves reporting in detail. In this regard, collective investment funds are much more understandable than any banking structure in which a deposit can be made. Every day, a specialized firm announces its net asset price. Controlling government agencies receive reports on the value of securities and the qualitative composition of the stock portfolio. Experts agree that collective investment institutions today are the most transparent instrument available to investors.

Where to invest money

Once the investment goals have been determined, specific objects can be selected. There are many investment options available to individual investors, but some of them should be immediately discarded if one does not have the relevant knowledge. Investments in antiques, philately or some even more original methods can bring benefits, but only if the person is truly a specialist and understands the subject. Otherwise, the money will be wasted. Therefore, in the first stages it is better to choose something that is time-tested and available to everyone who wants to invest money.

Savings accounts and bank deposits

The classic method of generating income. Bank deposits are the least risky asset. Deposits are reliable, but their annual rate for a long time is almost equal to or slightly exceeds the inflation rate. Therefore, they can only be considered as a way of preserving, and not increasing capital. If this indicator offered by the bank is higher than in other financial institutions, the position of the bank itself should be considered, perhaps by attracting new depositors it is trying to improve its position. Second-tier banks may offer higher rates, but in this case there is a risk of reorganization of the Central Bank and revocation of the license. In this case, depositors receive a refund of the amount of deposits, but not more than 1.4 million rubles.

Deposits in foreign currency bring even less interest, and in European banks these figures are even lower. Therefore, this type of investment should not be considered as an investment at all.

A similar type of deposit is savings accounts. Depending on the conditions (amount of investment, options for closing the account, the ability to withdraw money), the interest rate fluctuates, but also rarely exceeds inflationary processes. Nowadays, savings accounts are offered not only by banks, but also by insurance companies. In each case, it is necessary to consider the specific situation.

Real estate

The second most popular investment method in Russia. Such investments are inferior to banks in terms of reliability, but can bring greater profits. However, the high level of entry into the market is an obstacle for the majority of those wishing to purchase such assets.

The convenience of such investments is that they can generate passive income if the property is rented out. The second option is suitable for short-term investments with high returns and consists of purchasing an apartment at the foundation pit stage and resale the property after completion of construction. However, both options have their drawbacks.

In the first case, you will need to prepare the apartment for rent: purchase furniture, household appliances, and make repairs. After this, you need to find tenants, and then monitor both the condition of the apartment and the timeliness of payments. If the rent exceeds the amount paid on the mortgage, real estate can be purchased with a minimum investment in the down payment through a bank loan. This method is good because in addition to monthly income, the asset itself will also bring potential profit, gradually rising in price.

In the second option, the risk is that the object will not be completed if the development company does not have enough financial or material resources for this. Therefore, this option will require a thorough check of the developer’s history and financial statements.

Another option for investing in real estate that is still not very common in Russia is buying a room in an apart-hotel. It is suitable for those who do not want to take on the management of real estate. Apart-hotels operate as hotels, managed by specialized companies, and the owners of each room are private or legal entities. They are responsible for the occupancy of rooms, advertising, building repairs, etc. Investors are offered several programs with a certain percentage of profitability.

In the latter case, the risks are not too great, and the profitability exceeds the level of deposits. In addition, apart-hotels are built in areas with high traffic and developed infrastructure, both social and transport. Therefore, over time, an increase in the value of such an asset is required.

Bonds

Bonds are securities issued by companies or governments in which the issuer (the one who issued them) undertakes to repay, over a specified time, the amount spent by the investor, along with certain interest. Issuing bonds can be compared to borrowing money against a receipt, where a bond is an analogue of such a receipt.

There are several types of bonds:

• state - the safest non-payment of obligations can occur only when a default is declared or in other crisis circumstances;
• municipal - issued by local governments, funds go to the local budget;
• corporate - bonds of commercial companies, terms of issue depend on the rating and position of the enterprise;
• Eurobonds are securities issued abroad, paid in euros or dollars and used as an alternative to bank foreign currency deposits.

Secured and unsecured bonds are issued. The former are more reliable; when purchasing the latter, the risk of repayment is borne by the investor; he needs to check the reputation and credit rating of the borrower.

The amount of investor income depends on the coupon - the amount of payments on bonds, and changes in the value of the security. The coupon is paid either quarterly or semi-annually. If no payments were made, the coupon amount is accumulated and issued to the investor when the bond is sold to the issuer.

The amount received from the coupon is tied to the face value of the security. The price of a bond after issue gradually changes and it can be sold either more or less than its original cost. The loan is repaid on the day specified at issue.

Bonds are attractive due to their fixed income, which exceeds the profit from bank deposits. Government securities and bonds of blue chips (companies included in the list of especially reliable ones) are especially reliable.

Securities of other issuers can bring greater profits, but they are also riskier. Bonds that earn tens of interest are called “junk” and have a low rating.

This investment method is suitable for those who want to have a guarantee of return on investment and an average income. You can purchase them by opening a brokerage account or an individual investment account.

Stock

Investments in securities are made to obtain income above the market average. They carry a greater degree of risk than bonds or bank deposits.

Owners of shares can count on both their resale when their value increases, and the payment of dividends. The size (and the possibility of receiving) depend on the financial condition of the enterprise, the issuer and the decision of the meeting of shareholders. The meeting may decide not to pay dividends, in which case the owner of the securities does not receive profit for a certain period.

Preferred and ordinary shares are issued. The main difference between them is in the order in which dividends are received. In addition, owning shares allows you to participate in shareholder meetings.

Stocks are considered as one of the ways of long-term investment, but they can also be used for short-term investments. In the latter case, the calculation is not to receive dividends, but to sell securities at a higher price than they were purchased.

Mutual funds and ETFs

Mutual investment funds (or mutual funds) are financial organizations that purchase bonds or shares at the expense of investors. Each of the mutual funds composes different portfolios, which are distinguished by certain parameters. For example, a portfolio may contain only blue chips or representatives of a particular industry.

Income from participation in mutual funds is one of the ways to invest with the expectation of greater than average income. This is an instrument (in the case of open-end funds) of high liquidity that can be sold at any time. You can sell shares of closed-end funds only after the end of the investment period. There are also interval funds, whose shares are sold during periods specified at the conclusion of the contract.

The profitability of a share is determined by the success of the mutual fund and the profitability of the selected portfolio. It is impossible to determine the profitability of such investments in advance.

ETFs are similar to mutual funds in the way they work - here you can also invest in a group of companies or industries. But they are more profitable due to the fact that their commission is lower.

Precious metals

Investing in precious metals is not actually buying them, but investing in “metal” accounts. Purchasing real bars, coins or products is unprofitable, as it requires paying VAT and paying for metal storage. Anonymized metal accounts do not have these disadvantages.

The profit from such investments depends on the increase in the value of gold, palladium, platinum, silver or other selected metal. Over time, their price invariably increases, but it is quite difficult to predict exactly when and how much the cost will change. This instrument is not suitable for short-term investments, but for long-term investments it is beneficial to have it in the investment portfolio.

Venture funds and startups

Options suitable for those. who are interested in high-risk projects with potentially equally high profits. You can invest money either in a startup that promises high interest rates or in a fund that supports similar areas. Theoretically, such investments can bring 100 percent or more profit. However, there is no guarantee that the money invested will not be lost. According to analysts, no more than 2-3 out of a dozen such projects are profitable.

There are other ways to invest money, but they are either less accessible to novice investors or require special knowledge. And the listed methods are available to anyone, so they should be included in your first investment portfolios.

Features and risks

Regardless of what types of collective investment a potential investor is interested in, he can count on the management company to open the Prospectus for him. For an investment fund, this is the main document reflecting the company’s strategy in the stock market. This helps assess risks and predict investment returns.

At the same time, you need to understand that there will always be risks - it will not be possible to find a management company through which completely safe investment of money will be available. But collective investment securities are protected by the diversification method, when a variety of securities are included in the portfolio. If some lose in value, profits can be made at the expense of others that have jumped in value.

The correct formation of such a portfolio for a private investor seems to be a difficult task, since it requires large financial investments. As for collective investment, management companies have funds received from numerous individuals, and the total amount of money is very large. Consequently, such a company purchases bills, deposits and bonds, shares from various sources. As they say, “don’t put all your eggs in one basket.” The concept of collective investment is precisely the distribution of the proverbial eggs among several baskets.

Investment banks

This type of collective investment is common in economically developed countries and has not yet received proper distribution in Russia. Investment banks' main goal is to raise capital on the capital market for large investment companies. Banks carry out a variety of operations, among which the main ones are mergers and acquisitions of companies, sales of securities, consulting on the sale, purchase of securities and real assets, and analyze this market with the publication of reports.

Benefits and savings

Collective investments involve multiple investments being added together, resulting in a portfolio that grows quite large. Consequently, the management company gains access to large-scale operations on the stock market. This gives you access to better deals. You can compare this with retail and sweat sale of goods: the larger the purchase, the more favorable conditions the buyer receives. An investment fund, operating with a large amount, can buy shares by investing less money in each individual one than a small investor. Operating costs are reduced, that is, the company's benefits increase, which affects the profits of all participants who invested money in the organization.

An additional benefit associated with the reduced costs of collective investments is access to preferential tax rates. As long as the investor does not receive payments, all income is not subject to taxes. Transactions within the company are reinvested, but there are no taxes on this, since there is no taxation of profits. But if a private investor himself makes transactions on the stock exchange, he will have to pay tax on all intermediate profits received from bonds, shares, dividends, and interest.

Collective investments: construction

Over the past few years, this particular area of ​​investment has become the most popular in the country, but it is developing most actively in Russia in Moscow and St. Petersburg. Many Russian investors have realized that such an investment is profitable, but safe. Collective investments are represented by investment construction holdings and some other forms.

Through organizations, private investors invest their money in residential and commercial real estate. Good profits are shown by investing money in offices and hotels. Companies organizing investors select an object that promises good profits with minimal risks, assessing the requirements of fund participants. The holding deals with legal and technical aspects of cooperation.

Offers designed for investors with limited resources have become attractive. To take part in the project, you can have available funds in the amount of one hundred thousand rubles or more. This means that more and more individuals can become construction investors these days.

Investment partnerships

An investment partnership agreement is a method of collective investment, legally established in Russia in 2012.

The agreement allows you to combine the deposits of several persons and jointly invest in investment objects in order to make a profit without forming a legal entity. The agreement was created for investing in venture innovation projects that fell outside the Russian investment system. This type of collective investment corresponds to the Limited Partnership form of collective investment, widely known in the world.

Thus, most forms of collective investment existing in world practice are represented in Russia.

Selecting an object

If you have decided to take part in collective investments, you need to take a responsible approach to choosing a property worthy of trust. In this case, you have to choose between commercial and residential space. They evaluate profitability and costs and, based on the indicators, draw conclusions about which option is more acceptable and attractive.

In recent years, square meters used for commercial purposes have been 15-25% more expensive than residential ones. On the other hand, such territory can be leased at a more favorable rate. Collective investment in commercial real estate is considered by many analysts to be the preferred option.

Real estate investing according to new rules

Previously, an investor could buy an apartment at the excavation stage at a low cost and sell it upon completion of construction, earning 20-35% on the price difference in 2 years. This is how the developer raised funds to finance the construction. Under the new scheme, such investments are unlikely to be profitable. The bank has already given the developer money to implement the project and there is no point in understating the cost of apartments at the initial stage of construction.

But this does not mean that the developer no longer needs investments. He uses additional funding to replenish working capital, for example, to start new projects. This need has created the conditions for attracting private investment in the developer’s projects.

Crowdinvesting

Crowdinvesting is a type of joint investment when a lot of investors with insignificant funds are attracted to implement a planned project. But the profit from the completed object will be divided between the participants in proportions corresponding to who invested how much in the idea.

Financial experts say that this form has the best prospects these days. This is largely due to convenience. In Russia, crowdinvesting is still just in its infancy; there are no laws regulating this area. It has not yet been possible to launch a crowdinvesting platform that would show good results. However, the dynamics of the development of the financial market are such that we should expect the emergence of opportunities in the near future.

Using the example of the capital

The capital is the largest city in Russia, leading the way in many areas. Joint investment in construction is no exception. However, even here, as experts say, this area is still just developing, so there are not very many actually working projects. But Moscow investors are interested in collective investments.

It is especially clear from the participants in the local construction market that the largest group are those who do not have sufficient funds to buy real estate, but want to make a profit by investing in a certain object together with others on equal terms. Many of our contemporaries, having certain assets, want to distribute them across several projects in order to protect themselves from crisis and inflation. Finally, even if there are few of them, there are people who have enough money to buy some real estate, but are in no hurry to conclude a deal. Instead, they give the money to professionals, hoping for an increase in the amount after a few years.

Opportunities and realities

Collective investments are not necessarily managed by professionals. If we consider the construction sector, we can evaluate the purchase of real estate by relatives and friends as a joint investment. As a rule, this is done in order to sell the space at a better price in the future. Sometimes strangers cooperate in this way, united by the desire to make a profit. Typically, such people enter into agreements so that joint work takes place without conflicts. There are also closed mutual funds that work with collective investments in real estate.

If we consider collective investments in real estate in St. Petersburg, we can draw a conclusion: although in many ways the city is advanced for Russia, this area is still poorly developed, especially in terms of new buildings. A larger percentage of transactions involving several people are the joint work of relatives and friends, but this does not happen often. Collective investments such as mutual funds and similar structures are just beginning to attract public attention. But in Moscow, things are somewhat better with this.

Is it worth the risk?

Having a certain amount of cash, a person always thinks about how he can make his money work. Collective investments can come to the rescue, but a lot depends on both the place of residence and the area of ​​interest. As already mentioned, the construction area is still considered the most promising, but it is still developing. However, if you manage to choose a good management company, you can be sure that the money will be directed to a fairly safe project that will bring profit.