Where to invest small money

Investing free funds is a complex issue where psychology and economics often contradict each other. Money today is accumulated with difficulty, so not many people want to give it to it is not clear which hands. Especially when it comes to small amounts. For some reason it is more difficult to part with them. Therefore, the question of where to invest a little money worries many.

Minimum investment amounts

Large or small amount of 1000 rubles? Looking for someone. For ease of understanding, we will assume that a small amount of money for investment is an amount up to 50,000 rubles.

You can invest any amount, at least 100 rubles. Another question - where can I invest 100 rubles? In our time, it is better to spend them on yourself, your loved one. Bank deposits start from 1000 rubles. The next level is 5000. Here you can already consider options. And so on - the higher the amount, the more opportunities.

What are we afraid of or investment risks

This is where the psychological factor comes into play when you need to give your hard-earned money somewhere. If your task is to maintain at least the purchasing power of the accumulated funds, it is better to put them on a bank deposit. They will be more wholesome. More whole - yes, but there will be no more of them, in spite of any interest on deposits. The inflation rate is still higher.

You have to choose - risk and increase or stability, but without growth. For some, this question is very important, because the psychological losses can be incomparable with the amounts that can be earned on risky investments by investing little money. This question should be solved for everyone who is thinking about where to invest a small amount of money.

Before making a decision, you need to decide on the investment period, the desired income and the risk that you are willing to take in order to make a profit. Analyze your options. If you want money to really work, you must understand that it is impossible to pull it out of circulation, otherwise the whole idea will lose its meaning. Therefore, this money should be really free. Do not invest funds set aside "for a rainy day."

If you decide to become an investor, it will not be superfluous to read specialized literature that will help you understand at least the basic concepts.

There are risky investments for absolutely gambling people, there are reliable mutual funds, there are stocks and other instruments that you need to understand before making a decision. Let's start with the least risky options.

A very reliable place if you are looking for where to invest 1000 rubles. This is the minimum deposit amount for today, with the exception of various piggy bank accounts. Drives the fear of losing hard-earned money into banks. Even if something happens to the bank, the money will still be returned, they are insured. Again, you can pick up at any time, even from a term deposit. But there is no capital growth. The good news is that they do not depreciate, lying at home in the stash.

Bank metal account

Banks sell precious metals, mainly silver and gold, less often palladium and platinum. Thinking about where to invest a small amount of money, you can consider this option. There is a way to invest money in metals - this is the opening of a metal bank account and the purchase of metal ingots.

Account opening

It is called OMS - open metal account. For example, you are ready to buy gold for 20,000 rubles. This money will be credited to your account, only in the equivalent of the metal. You will earn on fluctuations in its value (ideally, on its constant growth).

Such invoices are not subject to VAT, since you do not physically make purchases. But if you still want to convert the account into bullion, you cannot avoid paying 18% tax.

When opening an account, you purchase metal not at the market rate, but at the internal banking rate. And that is exactly the number of grams credited to your account. They do not accrue interest, your income depends only on the exchange rate difference. And this is also a risk, you can make good money, or you can lose some of the money.

Purchasing ingots

When buying bullion, you get them at your complete disposal, and no policy of financial institutions can affect their profitability or loss. What to do with them is up to you. This investment option is quite reliable, especially for gold. Its advantages are also in the fact that ingots weighing from 5 grams are sold. Therefore, the question of where to invest a small amount can be solved in such a simple way.

The disadvantage of such an investment is the need to pay taxes - 18% VAT when buying a bullion and 13% income tax if you want to sell it back to the bank.

Mutual investment fund

Mutual funds are also a fairly reliable place to invest money, because their activities are regulated by law and the state. But even here there are pros and cons.

A mutual fund is a fund that brings together investors who purchase shares. It is entrusted to the management company to determine where to invest the funds from their sale. When buying a share, you actually put your money at the disposal of specialists who must invest it in the most profitable way for you, receiving a monetary reward for this. In this case, your task is only to choose the right management company.

Some mutual funds have a lower investment threshold. When choosing where to invest, for example, 10,000 rubles, pay attention to this indicator.

How to choose?

State control is good, but the risk is still present. What are the criteria for choosing a mutual fund so as not to lose money? When choosing, you need to consider several indicators. These are profitability, net asset value and the amount of funds raised. There is a rating of mutual funds by which their reliability can be assessed.

It is impossible to focus only on the profitability of the fund. Especially if these are indicators for a short period, for example, for a year. The high return could have been an accident or the result of an aggressive strategy based on high risks. If this is the main criterion for you, analyze this indicator for a longer period.

The rating of the amount of funds raised shows how much money came into the fund and how much went out. It is clear that a positive indicator means an increase, a negative one means a decrease. If this indicator is consistently negative for several periods, then it is not worth investing money in such a mutual fund.

There are also coefficients by which you can determine the reliability of the fund. You do not have to delve into the intricacies of their calculation, it is enough to know what their values ​​​​will help in choosing.

The Sharpe ratio will demonstrate the literacy of the investment policy. The higher this indicator, the more reliable the fund.

The Alpha coefficient compares the performance of a fund with the overall state of the stock market. It talks about how far the yield is ahead or behind the market. The high value of this coefficient indicates competent professional work with the investment portfolio.

The Beta coefficient is an indicator of the activity of the management company, the result of which determines the value of the share. The choice should fall on the funds where this indicator is the highest.

Types of mutual funds

There are several types of mutual funds. Before investing money, decide whether you want to receive passive income or active. Passive income means that you completely trust the investment of your funds to the specialists of the management company. In this case, it is better for you to choose a closed mutual fund.

If you want to receive active income, that is, take part in managing your money and influence profitability, invest in open mutual funds.

What expenses will you incur

When buying a share, you actually hire a specialist who is responsible for the proper placement of your money and the level of income that it will bring. Therefore, when buying a share, you will have to pay a commission. You will not be able to redeem a share without loss either. You will also be charged a commission called a sales discount. By the way, when choosing a mutual fund, pay attention to the size of these commissions.

Advantages and disadvantages

The advantages include:

• state control - the company cannot use the money for its own purposes;
• your money will be in the hands of professionals;
• the ability to invest amounts from 1000 rubles;
• investments can be insured;
• liquidity - the ability to withdraw your money at any time by selling a share in the management company;
• transparency in money management;
• profitability.

Flaws:

• high risks;
• availability of commissions.

So, see for yourself. It all depends on the right choice of a management company and the degree of risk that you are willing to take when choosing where to invest a small amount.

Have you thought about where to invest 30,000 rubles? You are not interested in banking offers, mutual funds need to pay commissions. You are a gambler enough and ready to take high risks for the sake of high income. There is an option for self-acquisition of securities. What are securities? Most of the time it's stocks. Profit is obtained from fluctuations in their market value. In fact, this is a stock market game. You can play on your own, but for this you need to master the science of technical and fundamental analysis. It is easier to choose a broker who will invest your money.

A broker is a professional who knows all the intricacies of the exchange and is interested in bringing you high income, because he receives commission from it. You can choose a broker in the same way as you choose a mutual fund - according to ratings that are published in the public domain on the website of the Moscow Stock Exchange.

Advantages:

• opportunity to earn high profits;
• small initial investment.

Flaws:

• high risks;
• the need to pay a commission to the broker.

With today's unstable financial markets, this option is not the most reliable.

Another answer to the question of where to invest a small amount of money. PAMM - an account to some extent similar to a mutual fund. But only because it pools the money of several investors. The PAMM account is managed by a managing trader, who can be anyone. The profit received by the PAMM account is distributed among investors in proportion to the money invested.

The peculiarity of such an account is that the managing trader must first open his own account and trade with the money invested in it. If trading brings income, then investors join it, whose money is also included in the turnover. The manager is interested in profitability, since his own money also “spins” on the account.

The safety of investing money in a PAMM account is ensured by the rules of the PAMM service. The managing trader has the right to trade with this money, but is deprived of the opportunity to withdraw it from the account. Trading is provided by a service that eliminates errors in mutual settlements between a trader and an investor.

The activity of a PAMM account is regulated only by its internal rules, the risk of investing money in them is quite high.

Forex trading

In search of an answer to the question of where to invest a little money, many come to Forex. Here you can start with the amount of 500 rubles. Today, Forex offers the services of brokers and teaches how to trade on their own. Of course, you can master the science of trading in the foreign exchange market, you can trust a broker and get very high profits.

The advantages of currency speculation include a large selection of currency pairs for trading. With good emotional stability, you can successfully trade and increase your money. But there is a psychological feature that is characteristic of beginners. In a simple way, this is called greed and emotional instability. For example, having closed one successful transaction, you see that the currency continues to fall or grow (depending on what you have earned money at the moment - by buying or selling). And you are drawn to put another certain amount on the same trend. As a result, everything that was just received is lost. The risk of currency speculation is extremely high. You can lose all your savings overnight.

Other investment options

There are not so many other options where you can invest a small amount of money. One of them is investing in your own business. It is clear that you will not be able to open a big business. If you have a creative streak, you should consider making souvenirs, postcards and, in general, hand made art products. Today these products are in great demand. The initial investment is a consumable, an office is not needed - you can do needlework at home. This option is suitable for those who are looking for where to invest 10,000 or even 5,000 rubles. This is just the amount that will be enough for you.

Today on the Internet there are a lot of suggestions on the topic "where to invest a small amount." If you want to try, keep in mind right away - these are ordinary financial pyramids. Offers to participate in some kind of circular investment fund (in principle, it resembles the “black cash desk” of the Soviet era) can be very tempting, but ineffective for you. Rather, the result will be - instead of increasing money, you will lose it. True, if you do not know where to invest 100 rubles, then you can try.

Where else can you invest a small amount? You can invest it in self-improvement. For example, in training that will help you move up the career ladder and, therefore, increase your income. But this is an investment with a long-term result, although not the most unpromising.

Now you are a little familiar with investment opportunities and will be able to decide how to dispose of free, albeit small, money. Good luck and high stable income!