Portfolio investment pros and cons. Investment portfolio and its properties. Small company value stocks

Investment is the investment of money for a long period in various financial instruments. The main goal is to make a profit in the future. If as a result financial transaction no income is expected, this does not apply to investment. Such , however, to achieve the expected result will require effective management in order to protect your investments from risks as much as possible. Cash tends to depreciate, since inflation annually "eats" about 10-15% of the initial amount. not only saves money, but also increases it.

Investing: essence and features

Investing is one of the most profitable ways to increase capital. Sometimes this concept is confused with others related to economic activity. There is a fine line between the terms "speculation" and "investment". The main difference criterion is the term of investment. Speculation - making a profit by buying and then reselling. Such investments are short-term and profit is formed due to the difference in value.

If we consider lending and investing in the context of business financing, then the first means the transfer of funds on the condition that they will be returned after a specific period at a certain percentage. In the event of bankruptcy, obligations to creditors are initially repaid. As for financing, unlike investing, its purpose is not to generate income.

We have invested our cash to these funds:

Investing in real estate: pros and cons

It is considered reliable and profitable. The demand for housing is constantly growing, as are prices. In addition, the rental of real estate is always relevant. However, not everything is as simple as it seems at first. The advantage of such deposits is that real estate cannot completely depreciate, like, for example, shares of a company. In any case, apartments will be rented, if not bought, so such investments in a crisis can bring at least some income. At the minimum price, you can buy real estate, acquiring it before the commissioning of the facility, in other words, during the construction period.

The disadvantages include low liquidity. If in the future you need to release urgent funds, then the chosen investment option is not suitable. Buying and selling real estate will cost a lot of time to find suitable options and complete various documentation - this is one of the main disadvantages of such investments. In addition, investment requires a lot of money. In a crisis, real estate prices fall and can be unstable. negative moment is that the investor will bear the fixed maintenance costs.

Investing in stocks: pros and cons

This type of investment requires a thorough analysis of the market, because the price of shares falls quickly and rises very slowly. During the jumps financial crisis, but also drastically go bankrupt. The investor may lose part of the capital, however, many, on the contrary, buy shares at this time in the hope of a subsequent rise in prices. The risks are significant, but the expected profit will be rather big.

Accessibility is one of the advantages of this type of investment. With many brokers, you can open a deposit with an amount of $500. But foreign sites will require at least several thousand dollars. High liquidity of investments is also a huge plus. Stock large companies can be sold instantly. Securities are traded online, which is very convenient, as an instant response to changes in the exchange market will help to avoid a crash. At the same time, it will be possible to earn on shares in two ways: speculative - on exchange rate fluctuations and on traditional dividends.

The main disadvantage is that shares can instantly lose their value in the event of a company bankruptcy. In times of crisis, their prices also plummet. And the recovery of value lasts more than one year. It is not worth one company (sometimes in the securities of one industry), but the formation of an investment portfolio requires a lot of money. When trading for small amounts, you can not do without brokers. This is convenient, but fraught with additional costs. Investing in securities takes into account economic forces and political. Ordinary shareholders may be left without dividends when the company has a losing year and its profits are directed to development. It is difficult for an inexperienced person to navigate and evaluate the benefits of a financial transaction, to see the possible risks and choose a specific company - this is not an easy task.

Investing in your own business: pros and cons

Investing in entrepreneurship in order to receive profits from this activity in the future. You can earn in several ways. The investor receives active income when he is also the head of the business. If the company is run by hired personnel, then earnings will be passive. You can invest in new business or already done. Financing can be full or the investor has only a share.

The advantages include a variety of directions. A business is an asset that shows what the funds are invested in and how they generate income. The investor can independently carry out entrepreneurial activity, influencing and managing investments personally. The undoubted advantage is that the return on such investments is unlimited and, depending on the type of activity, can easily be 100%.

The main disadvantage of this investment is the high risk of losing the invested funds. At equity participation in business, disagreements may arise between investors, as a result of which one of the partners may be forced out of the business. When investing in your own business, you need to be prepared for regular or periodic investments. Earnings from your own business do not come immediately, sometimes it takes several months, and sometimes even years. The investor will have to adapt to market conditions and control his business in order to avoid bankruptcy. Another disadvantage of such investments is dependence on the state.

Investing in jewelry: pros and cons

The cost of precious metals and stones is constantly growing, so the chosen investment method is very profitable. It is worth knowing that the price of ingots will be more expensive than gold jewelry, since the first uses the highest standard metal, and the second uses alloys that reduce quality.

The main advantage of investing is the high growth rate on jewelry. The most profitable option for the short term are deposits in an unallocated metal account.

The downside is that if the bank goes bankrupt, the investor will lose money. The main disadvantage of purchasing specifically jewelry is the inclusion of the work of a jeweler in their cost. The exception is antiques, vintage or exclusive items. When investing in gold bars, the downside is that you will need to pay about 18% tax to the state. The selling price in the bank (as in any currency) will be higher than the buying price, therefore, in order to get real income, a lot of time must pass or a sharp jump in value up. It is not recommended to store jewelry at home, it is better to use a safe deposit box, the maintenance of which costs money.

Investing in PAMM accounts: pros and cons

This is another way of investing, as a result of which the investor will receive passive income. - transfer of funds for trust management to traders for profit as a result of speculative currency transactions on PAMM services. Now this is a very popular direction on the Internet, which appeared relatively recently, about ten years ago.

The main advantage of such investments is availability. You don’t need a lot of capital, a hundred dollars will be enough to get started. The main driving force for investors is profitability. Quite a normal level of up to 50% per annum and above. And in the case of risky strategies, profit can be obtained very quickly. This method of investing is very convenient, since you can track the position in the market and perform various operations online. The PAMM platform acts as a guarantor for the settlements. Investors do not need to spend time studying literature and honing their skills, traders do all this. Investment portfolio is created by investing in various PAMM accounts, thereby minimizing the possibility of losing your money.

The main disadvantage is high risks. To control the actions of a trader, an investor must understand the Forex market at least a little. This way of investing is not suitable for gambling people. In this case, you will need a "sober" mind and prudence. The disadvantages include a commission for the services of a trader, which, in case of making a profit, can be up to 70%. There are a lot of scammers on the Internet, so you need to be careful.

Investing in mutual funds: pros and cons

Mutual funds are an organization that receives funds from investors and invests them in securities. The value is constantly growing due to the increase in the capital of the fund and the owner of the share receives a profit (it can be fixed if the share is sold).

The positive thing is that money management is carried out by professionals, because not everyone can figure it out on their own. Shares can be used as collateral and are also inheritable. A plus for many is the low threshold for entering mutual funds.

The downside is that funds do not guarantee returns. This is a long-term investment, but a project can be profitable for a couple of years, and the next one it can work in the negative, covering the amount of all previous income. Income tax is taken in the event of the sale of a share. The investor bears additional expenses, for example, the commission for entering an investment fund.

Investing in options: pros and cons

Like any other investment option, binary options trading has advantages and disadvantages. It's a variety stock trading, as a result of which profit is formed due to the movement of the price of assets (currency, goods, shares) in financial markets.

The idea of option trading is a forecast of a fall and rise in the value of an exchange asset, while traders do not see auxiliary graphic elements that would help them get the maximum profit. On the Russian market binary options appeared recently and there is not enough information about them in Russian. The platforms do not provide demo accounts, so beginners have nothing to practice on.

The positive aspects of such an investment include the fact that the cost of options is lower than the price of shares. The undoubted advantage is that the investor can predict possible risks and profits in advance. High yield is another advantage. Up to 85% of investments can sometimes be earned in a day. Trading takes place online, and it is convenient. You can start investing with twenty-five dollars.

The disadvantages of such investments are the big risks. All money can be lost at once.

Investing in startups: pros and cons

Relatively new concept in the world highly profitable investments. It means a young business project created to make a profit after its development. A distinctive feature of startups is the originality of the idea. A business that is created from scratch, but already has analogues, does not apply to this concept.

The advantage is that startup offers are available to everyone on various online investment platforms. Very often, the directions in which projects develop do not depend on real economy. In the case when several investors participate in a startup, the minimum investment is a small amount and is available to many. You can receive passive income from a startup or be an active participant in the development of such a business.

The main disadvantage is the high risk of burning out and losing all investments or losing profits. The creation and development of a startup is a long process that requires a lot of effort and work, so income appears at least in a few months.

Investing in HYIPs: pros and cons

HYIPs are projects from which an investor receives income from the funds invested by other investors. In other words, they are financial pyramids.

The main advantage of investing in such highly profitable projects is logical - high profitability. In one day, it can average 1-3% net profit. With investments in the early stages of project development, you can really get a good profit. The amount of the deposit should be such that the investor is not afraid to say goodbye. , you need to constantly monitor the project so as not to miss the moment of the peak of its development.

The main disadvantages are the short duration of existence. Basically, HYIPs do not "live" longer than one year, with the rare exception of some large specimens. Another negative point is the loss of the entire invested amount, in the case of a sharp one. It is rather difficult to predict the development of funds, however, experienced investors manage to do this.

Investing in self-development: pros and cons

Such investments consist in developing skills and knowledge in one or more areas and constantly multiplying them. You can attend trainings, study at business schools or educational institutions read the relevant literature. The main thing is to choose the right direction, which will be really interesting for a person and in the future, due to personal knowledge, he will be able to make a profit. True professionals in their field are highly valued in the labor market, so such investments are justified.

The disadvantages include regular. You will constantly have to improve your skills, improve and gain new knowledge in the chosen industry. It takes a lot of time to develop yourself.

In conclusion, it should be said that it is quite possible to make huge profits through investing. The main thing is to choose where to invest money. Among the variety of offers, it is sometimes difficult to determine the most profitable. Before investing funds, it is necessary to weigh all possible risks, read and study the information about the object in detail investment activity. Do not make hasty conclusions and actions. It is recommended to consult with experienced people, because in any business there are professionals who can help you figure out all the subtleties, even if not for free, but this will help you assess the possible risks and become a more savvy investor in the chosen area.

It is carried out by compiling and investing in a portfolio of securities.

It is the portfolio of securities that enables the investor to plan, evaluate and control the results of his investment.

A portfolio of securities is a collection of various kinds financial instruments owned by an individual or legal entity, having a certain risk-return ratio and capable of solving specific investment tasks.

Portfolio investment is investments in stocks, bonds, securities with a fixed guaranteed income, as well as securities with a potential high level income with possible high risks.

Each makes up its own unique one, which consists of various kinds of papers. Someone prefers quick profits, and their portfolio mainly includes stocks. Someone, on the contrary, relies on reliability, and the basis of such a portfolio is government securities and bonds of large companies.

Features of portfolio investment

The main goal and task of the portfolio is the constant improvement of such a qualitative indicator of the investment portfolio as the ratio of risk to profitability of all securities that are included in it.

Also, a lot important feature investment portfolio is to give it the investment quality that an investor needs. This is explained by the fact that not all goals and objectives can be achieved by investing in one security, for this there is portfolio investment. By combining objects, and specifically securities, the investor achieves his goals.

Income from portfolio investment equal to the total profit for all securities that are included in the investment portfolio, taking into account possible risks. Therefore, each investor is obliged to constantly analyze the composition of his investment portfolio and adjust and regulate the ratio of risk to return.

Often income from portfolio investment called speculative. After all, the income received by an investor consists of an increase in the value of the security in which he invested, as well as from dividends on it.

Main rule portfolio investment It sounds like, under no circumstances should you invest all your free cash in one investment object, in one security. It is always necessary to have reserve fund to solve unforeseen problems.

Main difference portfolio investment from other types, this is that the investor is a passive owner of the security and does not participate in the management and other affairs of the company that owns his security.

Investments are “infusions” of resources into the development of enterprises in order to obtain a certain percentage of profit from their core activities. Allocate investments of direct and portfolio types.

basic information

What is "direct investment"? Any investor has come across this concept, but not everyone understands its essence.

"Direct" are capital investments in which the investor becomes the owner of at least 10% authorized capital company or buys a controlling stake (51%). Thus, by investing money, you can enter into the management of a ready-made (fully formed) business.

Direct investments are divided into two large groups:

in the share capital of foreign companies (the so-called " foreign investment»);
into the country's economy.

Direct investments used by large corporations to create their branches outside the country in which the central office is located. Very often, the creation of branches occurs through the absorption of a similar, already existing business. It is enough for an investor to buy controlling stake and get the right to manage the company.

Large monopolies are interested in buying shares of small firms that are engaged in similar activities.

There are countries where competition in some areas of production is too strong, for example, in China there are a lot of small tablet assembly companies.

If there is an investor who wants to assemble tablets in China, then it would be advisable to acquire controlling stakes in already functioning companies.

Direct investment is aimed at working in the long term, so it is often called "strategic investment".

Structure of foreign investment receipts by types

Sometimes, for direct investment, special funds are created that accumulate large amounts of capital in order to further “capture” the monopoly in the market. Such funds have been operating for at least 10 years. After the fund closes, all investors receive a payout equal to their investment plus a percentage of the proceeds from the sale of assets that were resold by the fund.

Novice investors, due to ignorance or unwillingness to spend a lot of effort and time, use portfolio investment.

portfolio investment is a passive investment of money with the aim of obtaining short-term and instant benefits. Portfolio investors are engaged in investments in securities, bonds or stocks of different companies, which form a portfolio of investments or securities, hence the name "portfolio investment".

In fact, such investors acquire a part of the company without any interference in its activities.

Portfolio investments do not provide for the management of the company by investors.

However, there can sometimes be exceptions, for example, when the company is too large and its shares are divided among many small investors. The management of such a company is carried out by an association of investors or the largest of them.

Portfolio investment have some advantages over direct investment.

On the one hand, it is beneficial for the company itself, since its shares are owned by a large number of investors, and the controlling stake is in the hands of one investor.

On the other hand, the portfolio investor also receives certain benefits, because he does not have to take on the responsibility of managing the company.

The second positive aspect of portfolio investment is the minimal risk of losing money. The investor's funds are diversified (distributed) into many parts and invested in the statutory capital of several companies.

Portfolio investments consist of liabilities and assets of the company. Operations with the purchase of assets include trading in securities (stocks, certificates, bonds) of large foreign firms.

Financial liabilities can be government loans in the form of cash held by the investor.

Direct and portfolio foreign investments have a certain structure. Direct investment consists of four main categories:

investments in fixed assets (new);
creation of fixed assets (PF) through joint investment;
investments in the modernization of the OF;
investment in order to acquire 51% of the shares.

Portfolio investments consist of investments in securities and loans to enterprises or the state.

According to experts in the field of investment, today direct investment is one of the most developing types of earnings. Direct investments, although more risky than portfolio ones, however, they bring much more profit.

The difference between direct and portfolio investment

The fundamental difference between direct and portfolio investments is their ability to influence the company's activities.

The division of investments into two groups (direct and portfolio) is, of course, a convention.

Direct investments allow you to manage activities, portfolio investments do not.

Sometimes even 10% of the authorized capital is enough to manage a large enterprise (remember the example above, when the corporation is divided among many small investors).

Portfolio investment in the status capital of the company allows you to have a stable passive income, in fact, without interfering in the activities of the company. and planning strategies, as well as the calculation of return on investment.

ABOUT cash investment in gold read . Has gold lost relevance in our time?

No one can guarantee quick returns on investments, so when you invest under high percent, the risk of losing capital is high and not welcomed by many experienced investors. Here is everything about this type of investment and advice to the investor.

Who can invest?

Individuals and legal entities who use their own or borrowed monetary resources.

In deciding on the type of investment, an important role is played by the availability own funds and the purpose pursued by the investor.

For example, if funds are invested to preserve capital and increase it, then portfolio investments are used.

In addition, small investors also prefer portfolio deposits.

If the objective of the investor is to obtain the right to manage the business, then you should choose the direct type of investment.

Before making a decision regarding the choice of the type of investment, it is necessary to analyze the effectiveness of investments.

Buying property - view long term investment which has both pros and cons. attract many people because of the stability of the economic climate in the country. Read about some of the features of the German real estate market.

About investing in the American stock market read .

Portfolio investment. Portfolio composition

Portfolio investment involves the creation of a portfolio of securities, which may include shares / bonds of the enterprise, which have a variety of collateral and risk levels.

A standard investment portfolio includes securities of a certain type, but if necessary, its structure can be adjusted, which consists in replacing some securities with others.

With a competent approach, portfolio investments can not only reduce the level of risks to acceptable levels, but also provide improved conditions for investment. A combination of shares/bonds of the same type allows the investor to count not only on a stable income, but also make the investment process safer.

Portfolio investment risks

The modern stock market is a well-established mechanism that is able to effectively attract capital to the economy of a particular state. The leadership of the state is doing its best to ensure the maximum profitable terms for potential investors to ensure the necessary flow of capital into a particular sector of the economy.

Notwithstanding the foregoing, portfolio investment, like any other type of investment, is associated with a certain level of risk, which is to reduce the potential return.

In order to reduce the risks that accompany portfolio investment, one should adhere to fairly simple rules:

To reduce the level of potential risks, competently executed is required.
Before purchasing certain shares / bonds, it is necessary to collect as much information as possible about investment objects.
As insurance, it is necessary to create a source of reserve financing, the volume of which will be sufficient to cover potential losses.
It is also possible to insure the investor's risks associated with changes in the value of shares/bonds in an unfavorable direction for him.
When choosing securities, preference should be given to stocks/bonds with high liquidity, even if they have a lower yield. This is due to the fact that if the need arises, it will be much easier for you to replace one securities in your portfolio with others.

According to the statements of experienced investors, the main causes of losses in portfolio investment are:

Wrong choice of stocks/bonds when creating an investment portfolio.
Incorrectly chosen time to buy stocks/bonds.
Purchase of securities from low level liquidity, due to which, if necessary, to quickly sell them, the investor will incur certain losses.

The main difference between portfolio investments and direct investments is that the investor does not take part in the management of the enterprise, but acquires shares / bonds only in order to receive dividends.

If you are a novice trader and do not have enough capital to create your own investment portfolio, then you still have the opportunity to do portfolio investment. You can buy a share in e, which specializes in portfolio investment.

Unfortunately, very few foreign assets are available in Russia. And those that are, have significant drawbacks in the form of high commissions or very limited selection. Therefore, the question arises of withdrawing their savings to foreign markets where the choice of financial instruments is much larger. However, in addition to the obvious advantages foreign investment, there are downsides. Today's article will be about the pros and cons of investing abroad.

Advantages of foreign investment

High credit rating in developed countries

A credit rating is a measure of the creditworthiness of a company, region or country. A high credit rating means that a company or country with high proportion likely to fulfill all its obligations. A low rating indicates that the probability of not fulfilling its obligations (for example, declaring a default) is high. The highest credit rating is AAA, the lowest CCC.

On this moment Russia has the following credit rating:

Standard & Poor's: BBB-, Below average quality commitments
Moody's: Ba1, Risky commitments with speculative features
Fitch: BBB-, Liabilities below average

But most developed countries of the world have higher credit ratings:

USA - AAA
Japan - AAA
Britain - AAA
China - AA
Australia - AAA

Thus, the withdrawal of capital to countries with a higher credit rating helps to reduce investment risks.

High investor capital protection

IN foreign countries the investor's capital protection system is more developed and provides higher protection. In the US, insurance bank deposits limited to $250,000. Brokerage accounts are insured by SIPC (Securities Investor Protection Corporation) for $500,000 (including $250,000 in cash). In European countries, insurance of bank accounts is up to 100,000 euros, brokerage accounts - up to 20,000 euros.

Investments in Russian insurance companies, for example, in endowment or investment life insurance, are also not protected in any way in the event of a company's bankruptcy. The only hope is reinsurance companies. The protection of savings in those that work with Russians is 90-100%, depending on where the company is registered and what protection scheme is applied in that jurisdiction.

The development of the financial industry

The modern Moscow Exchange (formerly MICEX) began its work relatively recently - in 1992. The three largest stock exchanges in the world began to work much earlier: London - from 1801, New York - from 1792, Tokyo - from 1878. Foreign stock markets have a much longer history.

The same applies to financial instruments. For example, the oldest mutual fund in the United States, Massachusetts Investors Trust, which still exists today, began operations in 1924. Exchange-traded funds (ETFs) appeared in 1993. In Russia, the first analogues of mutual funds - mutual funds, appeared only in 1998, foreign ETFs - in 2013.

The foreign financial industry has a longer history of existence, during which it has been able to accumulate a lot of experience, develop legislation and regulation of the industry. For example, in Russian legislation there is still no such thing as an exchange index fund(ETF), so all ETFs on the Moscow Exchange are issued in other countries.

Large selection of financial instruments

The degree of development of the financial industry has also affected the number of available financial instruments. Only about 300 shares of Russian companies and about 1,000 bonds are traded on the Moscow Exchange. About 500 more US shares are traded on the St. Petersburg Stock Exchange. The number of Russian mutual funds for 2018 is 1,300, of which only 287 are open. The value of assets under management of all mutual funds is 763 billion rubles. The number of ETFs on the Moscow Exchange is only 14.

In the United States, the number of companies whose shares are traded on the stock exchange is approximately 5,000. The capitalization of the US stock market is $ 32,120,702 million. In total, more than 40,000 shares are traded in the world, total capitalization stock markets of the world 79.214 trillion. Doll.

There are 9,000 mutual funds in the US with $19 trillion invested in them. dollars. The number of mutual funds in the world is about 114,000. The number of ETFs in the US is 1,700, around the world about 4,700, 3.42 trillion are invested in them. Doll.

Capitalization of the Russian stock market 623 424 million dollars, Japan 6 222 825, France 2 749 314. Share Russian market shares in the global capitalization does not exceed 2%.

Map of market capitalization of the stock markets of the countries of the world, indexmundi.com

Thus, the Russian stock market occupies a very small place in the world, while foreign markets provide a much larger selection of financial instruments. Unlike Russian brokers, which in most cases provide access only to Russian exchanges, foreign companies allow you to buy financial instruments on dozens of exchanges in different countries from one account. Therefore, most foreign financial instruments will be available without any problems.

Available asset classes through funds

The limited number of funds in Russia affects the availability of foreign assets. Through Russian funds, you can invest only in a very limited list of foreign assets. Through foreign funds available assets much more.

Table of availability of foreign assets through Russian and foreign funds

Low commissions of foreign funds

Investors in foreign funds incur fewer costs. With trillions and billions of dollars invested in foreign funds, management companies can charge fewer commissions. The amount of assets under management of Russian management companies is much smaller, so they are forced to take a larger remuneration as a percentage of NAV in order to earn a profit. 0.1% of a billion dollars is more than 1% of a million.

Average fees of funds

The annual remuneration of the management company in mutual funds is on average 2-5%, in foreign mutual funds 1-2%. Commissions for ETFs that are available in Russia are 0.5-0.9%. Commissions in most foreign ETFs are tenths or hundredths of a percent and do not exceed 0.5%. Since the largest funds are located in the US, US index ETFs have the lowest commissions. The list of ETFs with the lowest fees can be seen below.

ETFs with the lowest fees

There are dividend-paying funds

Almost all Russian funds do not pay dividends. All dividends and coupons that the fund receives, it reinvests within the fund. Thus, in order to receive income, the investor has no choice but to sell part of the securities, or to form a portfolio of stocks and bonds himself.

Unlike Russian funds, foreign funds can both pay and accumulate dividends. That is, the investor has the opportunity to make a choice and form a portfolio of funds of the desired type. If the fund pays dividends, there is no need to sell the fund's shares to generate income.

These are not the only differences between Russian and foreign investment funds. You can read more about their comparison.

No language barrier

One of the common myths about foreign investment is the need for a good knowledge of English. Indeed, the main language of most foreign companies is English. However, knowledge of the English language is not required in all cases. Some foreign companies are focused on an international audience, including clients from Russia. Therefore, they have websites in Russian, translated documents, and even Russian-language support or representatives in Russia.

Therefore, if the use of English is a problem, one of the foreign companies that supports the Russian language can be chosen for investment. For example, this is the American broker Interactive Brokers or the investment insurance company Investors Trust.

The only problem may be studying information about foreign stocks, bonds and investment funds. Information about them is only English language. In this case, you can use online translators or contact a financial advisor who will help.

Easy account opening procedure

The advantage of foreign investment is also the absence of the need to travel anywhere to open an account in a foreign company. You can open an account with a foreign broker or an insurance company remotely. In the case of a brokerage account, you need to register Personal Area and fill out a web form on the broker's website, and then send electronic scans of two documents for verification.

In the case of an insurance company, opening an account takes place through a representative of the company, who will help to correctly fill out the necessary forms and documents and send them to insurance company for consideration.

In most cases, verification of documents and opening an account takes place within one to two weeks. The only exception here are foreign banks, many of which require a personal visit to the bank.

Cons of foreign investment

Limited choice of companies

The same applies to foreign ones. IN last years their number also decreased: Generali and RL360 stopped opening accounts for Russians.

To the credit of all these companies, it is worth recognizing that on clients from Russia who already had open accounts, it had no effect. They continue to work as before. Therefore, if your plans include opening an account abroad, then you should think about it now, before the number of foreign companies has decreased even more.

Required initial amount

Many overseas companies have minimum deposit requirements for opening an account. For foreign banks, it can be from 50,000 to 1 million euros, depending on the bank.

At foreign brokers it can be up to $10,000, although some brokers may not have minimum deposit requirements. However, brokers may charge regular commissions which will be high for small amounts like 1-2 thousand dollars. Therefore, for small amounts of a foreign broker, it is necessary to select more carefully with an eye to tariffs.

In investment insurance companies, deposit requirements differ depending on the type of program. Savings programs with regular contributions have a minimum contribution of 100-500 dollars per month. However, in practice, it is recommended to invest in such programs ranging from $300-500 per month or more. Another type of program - with a large one-time contribution - requires much more: 30,000 - 75,000 dollars.

Russian brokers and management companies in terms of opening an account are less demanding on the amount. Many brokers do not impose any deposit requirements for opening an account, while others have a small one - about 30-50 thousand rubles. As for management companies that offer mutual funds, the entry threshold for them in most cases is 5,000 - 15,000 per fund (more or less in some management companies). For trust management capital will need a larger amount - several hundred thousand rubles.

Higher commissions

As mentioned above, the commissions of foreign funds are several times less than the commissions Russian funds. As for the commissions of companies through which investments are made, the opposite is true here.

Service fees in foreign bank depend on the selected service package and can range from several tens of dollars / euros / francs per year to a thousand or more, depending on the options. Commission for storage of assets 0.1-0.5% of the amount of assets. Commissions for transactions with securities - 0.2-2% of the volume of the transaction, but at least 20-30 euros or dollars. Investment consulting - 0.15-0.3% of the portfolio.

For Russian banks, depending on the package of services, the service can be free or cost several thousand rubles a month.

From foreign brokers minimum commission per transaction starts from 1-2 dollars and depends on the number of securities purchased. The broker may also charge an inactivity fee, which can range from $10 to $20 per month. The commission for inactivity is reduced by the amount of commissions for completed transactions. Some brokers do not charge it at all or stop charging it if the amount on the account exceeds a large amount. Other fees may also apply, such as a no-delay market data fee.

IN funded programs unit-linked annual policy maintenance fees can be up to 3%. However, it provides bonuses- additional payments from the insurance company for the duration of the program and the amount of contributions. The longer the term of the program and the contributions, the greater the bonuses, which reduce the overall costs of the policy. Changing funds in the portfolio is free up to 15 times a year.

In programs with a large one-time contribution, annual commissions can be 1-2%. But starting from the first year, they gradually are declining and within 5-8 years can reach 0%. There is only a fixed commission for the policy. The transaction fee is fixed and amounts to 20-30 dollars. There is no commission charged for currency exchange.

The commission is much lower than foreign ones. The transaction fee can be 0.03% -0.1% of the transaction volume. Many brokers do not have a minimum commission per trade, while others have it around 30 rubles. Market data is free. Service fee may be absent or range from 10 to 150 rubles per month. Often it is reduced by the value of completed transactions.

The need to submit tax returns

Foreign companies are not tax agents for Russians, therefore citizens of the Russian Federation are required to independently submit a tax return to the Federal tax service Russia and pay tax at a rate of 13%. The obligation to file a tax return arises if income was received on the account in the past year. Therefore, in most cases, a tax return must be filed annually.

The only exception is unit-linked policies. Under the law, income received within the policy does not need to be declared. The obligation to pay tax arises when the amount withdrawn from the policy exceeds the amount deposited. Since policies usually open on long term, you may not need to file a tax return for many years.

In the case of foreign banks, the number of reports increases: citizens of the Russian Federation who stay in Russia for more than 183 days a year must notify tax office about their foreign bank accounts within a month after their opening and closing. It is also necessary to report annually on the movement of funds on the account. Notify the IRS of your brokerage accounts and unit-linked policies not required unless the brokerage account is opened with a foreign bank.

In the case of working with Russian companies, everything is much simpler. Report to tax office don't need it yourself. Russian companies in most cases they are tax agents, that is, they themselves file for their clients tax returns and withhold taxes.

No tax incentives

Russian legislation provides tax incentives for investments: long-term holding benefit and tax breaks available on . But they are available only for securities traded on Russian stock exchanges, and therefore do not apply to foreign investments.

The only exceptions are unit-linked policies, which are life insurance policies. Tax incentives apply to them - the tax must be paid only on income that is received in excess of the refinancing rate.

Conflict resolution

Because foreign companies registered in foreign jurisdictions, they are not subject to Russian legislation, but the legislation of the country where the company is registered. That is, if the need arises for a litigation, you will have to sue abroad. To do this, you will have to understand the intricacies of foreign legislation and hire a foreign lawyer, whose services can cost several thousand dollars.

The risks of such disputes are not very high if the selected company has a good reputation and the country is developed financial market on which the financial regulator operates. For example, in the United States, the role of the regulator is performed by the SEC (Securities Commission) and FINRA ( Financial Services Regulatory Service).

As can be seen, investments abroad have enough advantages to be considered as a good alternative to purely Russian ones: low investment risks, protection of the investor's capital, a large selection of instruments, low commissions. The disadvantages include higher requirements for the initial investment amount and the need to pay taxes on your own. But these shortcomings are not an insurmountable obstacle, which means that investments abroad are now available to many.