Where it is more profitable to invest money? In what to invest money?

The vague economic situation in our country, exacerbated by the end of 2014, makes it possible to conclude that the crisis will intensify in the newly-created, in 2015. This forecast is supported by the opinions of both Russian and Western experts.

As part of the accelerated decline of the national currency, by the end of last year, many were wondering about where to invest in Russia with the greatest possible benefit, or how to preserve the existing savings, when banks are "closing".

The main causes of the Russian economic crisis

There are at least five of them:

1. The critical situation in Ukraine, which resulted in the reduction of a number of economic indicators, and the growing corruption cause an accelerated outflow of capital (according to many experts, this will continue in the coming 2015).
2. The eurozone, Australia, the United States, Canada and other countries have been sanctioned.
3. Reduced competitiveness of Russia due to the outflow of foreign investment due to the above sanctions.
4. Direct dependence on the price of oil.
5. The fall in the national currency and inflation of interest rates of the Central Bank due to capital flight.

Current forecasts of the development of the Russian economy in relation to 2015

The above-mentioned reasons for the economic crisis in our country are provoked by very disappointing forecasts of its further development, in view of which the question becomes increasingly relevant as to where it is more profitable to invest money this year. The accelerated fall of the national currency at the end of last year makes even the leading economists think.

Forecast by V. Osakovsky (specialist of the American bank Merrill Lynch): the Russian economy will continue to remain in a recession up to the 2nd quarter of 2015. It predicts zero growth of the ruble this year. Inflation, in his opinion, will grow to the level of 8% by the first quarter of 2015. In this regard, in the 4th quarter, CBR rates will rise. The result of all this is a decrease in the number of credit programs and a drop in income (real) population. However, already in the second half of this year, there will be a strengthening of economic growth trends due to an increase in government spending, in particular, the construction of a Crimean bridge and the construction of a gas pipeline to China, as well as a reduction in imports. The further outcome depends on whether there will be a de-escalation of the Ukrainian crisis or its resumption.

The forecast of D. Nell and A. Slyusarchuk (economists of a large US banking holding Morgan Stanley): the economic downturn in 2015 by 0.5%, a reduction in investment, consumption, acceleration of inflation growth. This will lead to an increase in CB rates until the second half of this year. They also note the dependence of the further development of the economy on the outcome of the crisis in Ukraine. If the escalation continues, rates will rise, and Russia will go into recession up to 1.5%.

The forecast of the Ministry of Economic Development: economic growth this year by 1%.

As for the western financial and economic institutions, they differently assess the further development of the economic situation in Russia.

Forecast of FocusEconomics: economic growth in 2015 by 1%. And the financial and economic news agency Bloomberg assumes that this year will see an economic growth of 1.15%.

The forecast of Danske Bank, BNP Paribas and Swedbank: a two-year recession with a special load for the current year (a decline of 0.6-3%).

Where can you invest money in the current economic situation?

The main areas of investment:

1. The foreign exchange market (an impressive risk of inflation, even when cash is stored). If nevertheless there will be a desire to invest in this investment tool, then it is worth choosing the most stable currency (euro, Swiss franc, dollar). Investing in the ruble is now more than risky.
2. You can invest in real estate. Investing in commercial facilities, housing, construction has always, so to speak, been in demand. However, it should be remembered that during a crisis, real estate can easily fall in price by at least 50%. Therefore, it is more effective to invest money in real estate in only developing cities.
3. Deposits for the preservation and augmentation of money. Their first appointment is more in demand, as investing money at interest will not be effective because of minimum rates. With an unfavorable outcome, they will not cover losses. However, if the decision is made to invest money at interest, then the following recommendations should be observed:
   
   ● you need to trust only reliable banks;
   ● choose deposits that give the possibility of partial or full withdrawal of funds without losing accrued interest;
   ● it is worthwhile to invest in several banking institutions, and each deposit must be up to 700 thousand rubles. In view of the fact that the insurance agency guarantees the safety of the amount not exceeding 700 thousand rubles.
   
4. Antiques, art objects. This is recognized as the most reliable tool for investing in times of crisis. If there is any doubt as to whether it is worth investing here, you can reassure yourself that such investments are considered one of the most profitable and reliable investment tools. This contribution will protect the funds and significantly multiply them.
5. Precious metals. This is a rather risky option as to where to invest (investment), because the gold rate always fluctuates (as at present). Similarly, the situation is with silver. The most stable is palladium.
6. Mutual Funds (a very risky investment instrument). It is worth recalling the situation with the collapse of stock markets (2008-2009). Many believe that this situation may recur and now, so this is not an option where it is better to invest money.
7. Own business. Experts advise to refrain from this kind of investment in the current crisis situation. If you still made a decision about what to invest in, and this is your own business, then you should focus on the items and services of first necessity (provided there is no congestion in the segment).
8. Shares (special knowledge is required to manage the existing investment portfolio). In an unstable economic situation in the country, they can, with good management, bring substantial income.
9. Exchange speculation. This is a good option as to where it is better to invest money (especially during a crisis, when the quotes are quite impressive). However, at this time it is better not to start learning the trade process, but rather trust the professionals.

Thus, whether to invest money in real estate, or in antiques, or at interest, or elsewhere - a solution that requires serious analysis on such criteria as reliability, profitability, riskiness, etc. Always it is necessary to proceed from the current economic state of the country.

Investing in shares

This is the most popular investment tool to date. His popularity is determined by a number of exceptional advantages, so he leads the rest of the investment tools. However, in order to maximize the effectiveness of securities, you need to own a certain amount of knowledge about the investment process.

Stock trading is a fairly simple process, because a significant amount of data is stored electronically. If the required knowledge is not available, then it is necessary to entrust the trade to a professional trader. He organizes trading on favorable terms for pre-agreed commissions.

Advantages of the investment instrument under consideration

Investing in shares is beneficial for the following reasons:

• The indicator of the annual return on shares assumes the value of 100%;
• The share price is established based on the profits of the company behind it, this profit is a derivative of inflation (directly the art of managers of firms brings an additional profit to the shareholder).

Disadvantages of this investment tool

To invest money in shares, many think an inexpedient solution, because:

• They have the property of volatility (under the influence of the market, the value of shares can fall sharply);
• The shareholder can get the profit in the last place (payments to suppliers, employees, creditors, etc. are made first).

Education as an investment option

Such an investment in the future will bear fruit as a new position and, accordingly, a good salary. And in the current crisis situation, it will be superfluous to think about a second higher education or courses of advanced training or retraining.

Education is a good option where you can invest money, especially such investments will provide a number of advantages in the labor market. In addition, during the crisis, the training will also save (most universities offer discounts in order to attract customers).

However, one should not invest in education if there is a doubt about the lack of time or the patience to finish training.

Travel as an option for what to invest in

Many consider this to be the most worthwhile option of spending money. For psychological satisfaction, along with purchases, it is necessary to invest also in good impressions. In this regard, rest must be full, as it can affect the quality of future work.

However, traveling is not a very good option for investing money, if they are credit or the latter. Also, the trip should be planned independently, in view of the fact that recently bankruptcy cases of travel agencies have become frequent.

Investing in a startup

First of all, it's worth telling what a startup is. These are innovative companies that offer fundamentally new technologies. The introduction of new and unknown technologies, bringing them to mass consumption is quite a difficult task, the favorable resolution of which can bring more than one hundred percent of the profit. That is why this option is recognized as approving as to where it is more profitable to invest money.

To make money on this type of investment, you need to be sure that such components as the goal, team, idea and plan are closely interrelated, and the company is clearly aware of its mission and how to implement it (the main component of success).

There are enough examples of when start-ups from the zero point turned into billionaires, while enriching their investors at all stages of development. At present, there are special exchanges for start-ups, which reduce the company and investors.

"Startups Exchange" is a site where company data, their offers, business plans are registered and the amount necessary for promotion is indicated. Interested investors contact the company and are subsequently invested in its offer. One start-up may have more than one investor.

Pros and cons of this type of investment

This is a good option as to where it is more profitable to invest money, since even in a situation of burn out, for example, ten startups out of eleven, the latter is able to recoup the losses incurred due to a yield of several thousand percent.

However, a startup is always a risk and an unexplored area. Quite often they die not because of a bad idea, but because of the illiterate organization and incompetence of the company's management.

Despite the shortcomings, it is still recognized as a good solution to the question of where to invest (feedback from grateful investors is a confirmation of this). In addition, many are guided by folk wisdom: "risk is a noble cause."

Investment service PAMM-account

Literally translated as a module of interest sharing. As an investment service, this is a kind of trust management that allows a depositor to make a profit at trading on the foreign exchange market "Forex", attracting professional traders for this.

Its principle of operation: investors (any person who invested in the PAMM-account) make contributions to the common account, with which the manager (trader) selected by them makes appropriate manipulations. As a result, the profit (loss) received is distributed based on the investor's share in the total account.

Security is ensured by blocking the possibility of investors withdrawing funds from their trader. The investor, in turn, can withdraw the funds due to him at any convenient time for him.

A mandatory condition for the manager is making your own funds to the PAMM-account. This is due to the division of risks (the trader, making transactions, risks and own funds). With each profit earned, he is entitled to a reward, the amount of which is assigned in the agreement (20-50%).

In order to protect investment funds from their total loss during trading on PAMM-accounts, it is possible to impose a limit on losses to a certain level. It is also realistic to adhere to the zero-risk strategy.

Advantages of the PAMM-account

They have the following form:

• In comparison with the bank deposit, a more significant percentage of profit (based on the manager's professional skills, up to 100%);
• The possibility of earning income as soon as possible (per week);
• The choice of the manager according to his requirements;
• An acceptable level of minimum investment (from $ 100);
• The possibility of prompt withdrawal of funds on demand (within a week);
• Free schedule;
• 24-hour monitoring of investments;
• Comfortable way of investing (remotely);
• Investment management from anywhere where there is Internet access;
• There is no need to undergo training for playing in the foreign exchange market;
• Withdrawal of funds in any convenient way (bank account, "Yandex.Money", "WebMani", etc.).

Recommendations on the selection of trustees

The values of the main parameters of the PAMM-account are as follows:

1. The amount in management (the indicator of trust of other investors to the general manager).
2. The capital of the manager (the trader risks his capital, too).
3. Age (due to the fact that the accrual of relevant interest on the amount occurs every week, it is also indicated in weeks). It is recommended to choose PAMM-accounts having an age of less than twelve weeks. The longer the account works, the easier it is to track the results of trades, the professionalism of the trader, and so on.
4. The minimum amount of investment (does not reflect the success of the trader, allows you to select the right PAMM-account).
5. Secondary signs of reliability (displaying the activity of the PAMM-account through various coefficients, their ratios, as well as formulas for determining the reliability of investments in account data based on post-analysis of the trader's work).

So, the decision as to where it is more profitable to invest money is taken depending on the current state of the economy and on what purpose the investor pursues.