European companies for investment. Foreign companies are the right investment

There are three general ways to invest abroad. You can invest in foreign assets through:

• foreign bank

• foreign broker

• foreign insurance company

In view of the large threshold for entering a foreign bank, the second and third options can be recommended for a Russian investor. Nevertheless, in the case of small capital, one can also pay attention to Russian, which may contain foreign securities, as well as to Russian brokers and sub-brokers. In this article, I will briefly summarize all the options that a Russian investor can use to acquire foreign assets.

Through mutual funds:

• Actively managed mutual funds

Under Russian law, there is no prohibition on the ownership of foreign securities for mutual funds. Since the overheated Russian market has stopped growing since 2008 (besides, the share of Russian stock assets is only about 1% of the world market), a sufficient number of mutual funds with foreign assets have appeared in recent years - although the first attempts were limited to fractions of a percent. This is due, among other things, to the fact that it was not very clear how to formalize the storage of such securities in a Russian depository. However, by 2011 this problem had been completely resolved:

An additional advantage of such mutual funds is the investor's income from the devaluation of the ruble, which has been especially well felt over the past two years. Because of this, an investor could receive a ruble income above inflation in a stagnating and even falling foreign market - as, in fact, happened at the end of 2015.

• Passive mutual funds

• On foreign exchanges

Some Russian brokers offer direct access to the foreign market: for example, BCS or Otkritie Broker. In this case, you should obtain the status of a qualified investor - usually this is a certificate of the Federal Financial Markets Service or assets for several million rubles and experience in trading on the market. Entrance from $ 10 thousand. Brokers are tax agents, i.e. automatically withhold tax.

• Through stock stores
  

Some brokers, such as Freedom Finance, online store services - where stocks (Russian or American) can be bought in a few clicks of the mouse - i.e. as a regular item on ebay or amazon. Thus, you do not need to master the broker's trading terminal. The downside of this "ease" is the service's rather high commissions - in addition, only individual promotions are offered there and there are no diversified products.

Through Russian sub-brokers:

I wrote about the possibility of entering the international market through sub-brokers (Cypriot subsidiaries of Russian brokers). Sub-brokers, although they are not tax agents, may result in increased taxation, and in the event of bankruptcy of either a direct foreign broker or a sub-broker, collisions with the return of funds are possible. Cyprus' protection in the form of the Cysec insurance fund after the 2013 crisis looks more like a formality. The threshold for entry through sub-brokers can vary greatly: for example, for WhoTrades Ltd. - the Cyprus branch of Finam - it is equal to only $ 200, while the Cypriot subsidiary of BCS - $ 10,000. For withdrawing funds from the latter, you will be charged a $ 15 commission.

Through foreign brokers:

Having received direct access to foreign exchanges through a foreign broker (today several American and 2-3 European brokers are available to Russians), the investor gets at his disposal a full range of foreign assets, starting with the purchase of individual stocks and bonds. For several reasons, this method has an advantage over those discussed above - for example, American brokers have investment accounts for up to $ 500,000, while Russian brokers do not have insurance at all for the client's funds. For a portfolio investor, diversified products are primarily of interest - these include:

• Mutual funds

Unlike Russian mutual funds, most large mutual funds have agreements with large American and European brokers, so that mutual fund shares can be purchased both directly through the management company and through them. A detailed article on mutual funds can be found. The commissions of such funds are usually less than Russian mutual funds and do not exceed 1-2%; the history of mutual funds takes its report from the 20s of the last century, while the first mutual funds of the newly revived Russian market appeared only in 1997.

• Exchange traded funds

Exchange-traded funds can be conventionally considered an advanced version of mutual funds - in many respects repeating their essence, exchange-traded funds are distinguished by transparency, increased liquidity and lower commissions. Today it is the best portfolio investment tool, and the number of funds (several thousand) allows you to create a portfolio even for the most demanding investor. The main disadvantage for a Russian is the purchase amount of at least several thousand dollars, so that the broker's commissions (the funds themselves are cheap and usually cost several tens of dollars) do not greatly affect the total amount of the portfolio.

Through an insurance company:

• Accumulative type

Accumulative programs are primarily suitable for large sums and focus on accident (illness, death) insurance. Such programs are also recommended for people with total risk intolerance - capital accumulation in such programs follows a straight line, i.e. the same as when making a bank deposit. However, the profitability is not encouraging either - it is about 2-3% per annum in foreign currency, and the mechanism for generating income is opaque for the investor. Large companies of this type usually have international ratings, the assets of some of them are reinsured by other companies. National Western Life is an example of an American savings insurance company available to Russians.

• Investment type

This type includes companies operating on the unit-linked method (English investment method). Three such companies are currently available to Russians, and I have made detailed reviews on two of them. In short, the essence of the services provided is that companies offer an investment product within the legal framework of insurance, which allows you to receive preferential taxation of income. However, the investor himself chooses the investment products and is responsible for the result. This moment is a stumbling block for the work of programs in the legal field of Russia - therefore, the work of unit-linked companies in many countries of the world is carried out through financial consultants.

The mutual and exchange-traded funds discussed above are offered as assets where you can invest. At the same time, compared to foreign brokers, you can invest in a unit-linked company from $ 100 per month (at least $ 300 is recommended), although the choice of available funds will be less than that of a large foreign broker. The disadvantage is that the minimum required amount accumulated in the initial period remains in the program until the end of the investment. The advantages in comparison with the accumulative type of insurance include a higher expected profitability - at a distance of 10 years or more, it should be 2-4 times higher, although you will have to "pay" for it by waiting for the inevitable drawdowns on your account. In this case, the insured is usually from 90 to 100% of the investment, depending on the method of protecting the capital in the company.

Directly:

An option for a professional is to go abroad and directly purchase, say, the desired property there. Or in the same place you can personally negotiate a large amount of money in the company you are interested in on the terms, for example, of receiving increased dividends. The options, although possible, are very difficult in practice. Therefore, I believe that what has been written above is quite enough for investing in foreign assets in a variety of industries (stocks, bonds, real estate, metals, the commodity market).

Global equity markets are still more attractive in terms of profitability than the Russian market. While the Moscow Exchange Index grew over the past year by only 3.3%, the American S&P 500 showed an increase of 24%, and the European composite index STOXX 600 - by 10%.

The range of available tools is also incomparable with the domestic market. “283 shares and receipts are traded on the Moscow Exchange. For comparison: there are more than 4300 securities on the US stock market, more than 4000 on the European market, and more than 3000 in China, ”says Evgeny Vorobyov, head of the analytical department of Ingosstrakh-Investments Management Company.

Also in the USA and Europe, in contrast to Russia, investment insurance is provided. “In the United States, the Corporation for the Protection of Securities Investors provides a guarantee for $ 500,000, of which $ 250,000 is in the investor's funds. The EU has a directive on compensation for investor funds with a limit of € 20,000, ”says lawyer Ivan Khapalin.

To enter foreign markets from Russia, a private investor, as in the case of investments in Russian assets, will need an intermediary. This can be a broker, bank or management company. The choice of an intermediary often depends on the threshold of entry, knowledge of the language, the investor's risk profile and his willingness to participate in the process of concluding transactions.

Account with a Russian broker

The most obvious way to enter foreign trading floors is to open an account with a Russian brokerage company that provides such a service.

Most licensed brokerage organizations allow you to access foreign and Russian stock exchanges, buy and sell securities, enter into contracts and exchange currency on behalf of the company. In addition, you can count on analytical support from the broker.

You can conclude an agreement with a Russian brokerage company and open an account online on the company's website, through the Gosuslugi portal or directly in the office.

The broker's commission can be fixed or depend on the amount of concluded contracts and turnover per day. As the study of the conditions in the TOP-15 Russian brokers has shown, the size of the commission depends on the type of asset with which transactions are carried out - on average in the market, it ranges from 0.005% to 0.1% of the trading turnover per day.

Also, brokerage companies may charge clients a commission for depository services. Some brokers - mostly with the “prime” status - offer a tariff plan that assumes a single commission for the provision of a full package of services.

For an additional fee, trading in shares by phone and training on how to work on the exchange can be provided. Depending on the broker, the commission for accepting voice orders can be charged in the amount of about 59 rubles, starting from the fourth to sixth order per day.

As for additional training, according to Alexander Dubrov, head of the Otkritie Broker Internet trading department, the cost of the course varies from zero to 26,000 rubles on the market.

Qualified investor status is highly desirable for trading in Western markets. To get it, you need to have assets in the amount of 6 million rubles on a brokerage account or have a financial education or qualification certificates of a professional market participant (FFMS, CFA).

Otherwise, you can only get access to a limited list of American securities listed on the St. Petersburg Stock Exchange in Russia, notes Alexander Dubrov. Currently, there are shares of 528 foreign issuers from 11 sectors of the economy, including Apple, Facebook, Tesla, etc.

The investor will also have access to securities of exchange-traded funds (ETFs) from FinEx, traded on the Moscow Stock Exchange, including funds for MSCI country indices, recalls Natalya Smirnova, CEO of Personal Advisor.

There is another way to enter foreign markets - to conclude an agreement with a subsidiary of a Russian broker abroad. As a rule, such companies are registered in Cyprus, Belize, the Cayman Islands or the Seychelles, says Maxim Yudin, director of sales and customer service at QBF.

The activities of such subsidiaries are usually regulated by local jurisdictions, which allows them to insure client accounts and set a more comfortable entry threshold - it will be two times lower than when working with a foreign broker directly.

Financial consultant, co-owner of the Personal Capital company Boris Kozhukhovsky notes that a starting amount of $ 5,000 is enough to make transactions through the offshore subsidiaries of brokers.

Account with a foreign broker

It is also possible to trade on a foreign exchange through a foreign broker, but experts interviewed by Forbes consider this path to be one of the most difficult for unprepared investors. The main advantage of this option is that it provides access to the full range of instruments in foreign markets.

You can open a brokerage account online by attaching the necessary documents in electronic form. In addition to a passport and an application for opening an account, confirmation of residence is often required - in principle, no more than a month ago: it can be a utility bill, a certificate from a place of work or from a bank, says Natalya Smirnova.

Compliance procedures in the United States and the European Union are stricter than in Russia, so you need to be ready to confirm the source of the income, says Alexander Dubrov from Otkritie Broker.

The broker's commission, according to Maxim Yudin, can be fixed: $ 0.005-0.0045 per share, from $ 1 per order, or a maximum of 0.5% of the transaction value. Or floating - depending on the number of shares, the volume of assets or turnover.

The minimum entry threshold for foreign brokers, as a rule, is in the range of $ 10,000-30,000, says Georgy Vaschenko, head of the Russian stock market operations department at Freedom Finance Investment Company. “In addition, even if an investor receives a loss in foreign currency, he can make a profit in rubles and must pay tax on it,” he emphasizes.

Valeria Kovaleva, a lawyer for Musaev & Partners, recommends that among the total expenses, take into account a commission of an average of 3% for withdrawal from the exchange and 2-3% for transfer to a Russian account.

Brokerage accounts are also opened by corresponding divisions in some foreign banks, but their entry threshold may exceed $ 100,000, adds Natalya Smirnova.

A number of additional costs and commissions are added to this. Since brokerage services are provided in conjunction with banking, it is important to estimate the total costs of maintaining an account and investing through a foreign bank.

According to Boris Kozhukhovsky, a client of a European bank will face expenses for maintaining an account of about € 1200 per year and fairly high commissions for trading operations. Buying and selling shares will cost 1.5-2% of the transaction amount, at least € 100. Buying and selling bonds - about 0.8-1%, minimum € 100. Some banks also charge a commission for crediting dividends.

It should be noted that the declaration of the income received when working with a foreign broker falls entirely on the shoulders of the investor himself. In addition, possible disagreements will have to be resolved in the broker's jurisdiction, emphasizes the head of the Internet trading department in the international markets of BCS Broker Sergey Vyzhlakov.

Equity funds

If brokerage accounts are of interest to investors who intend to actively conclude deals on the exchange, then market participants who do not want to devote much time to trading will be interested in investing in foreign assets through passive instruments, the surveyed experts agree.

This is, first of all, about mutual investment funds that are invested in stocks or bonds of foreign issuers. Working with this tool does not require an independent selection of securities and opening a brokerage account.

Natalya Smirnova, General Director of Personal Adviser, notes that to invest in mutual funds that invest in foreign assets, it is enough to visit a management company or an agent bank. The entry amount usually starts at 5,000 rubles.

However, this tool can hardly be called cheap. In addition to all fees charged by the management company for the purchase of assets, currency conversion, storage of securities (in the amount of less than 1% of the value of assets per year), the head of the department for work with institutional investors of the St. 1-3% of the value of assets per year. Thus, the management fee for funds can go up to 4%.

Not getting even 2.5-3% annually significantly reduces the growth of the investor's capital over a long horizon, warns financial consultant, co-owner of Personal Capital Boris Kozhukhovsky. "For comparison: the commission of foreign mutual funds is 1.5% -1.9%, and exchange-traded ETFs (Exchange Traded Fund) and mutual funds, traded on the exchange - 0.4-0.04%," he says.

This disadvantage is partly offset by more comfortable taxation. “If you have“ held ”a share for more than 3 years, then you are exempt from income tax. Otherwise, the tax will be 13% on the difference between the purchase and redemption of the value of the share, if it is positive, "explains Ravil Yusipov, Deputy General Director, Head of the Stock Operations Department of MC TFG JSC.

Many domestic investors treat Russian investment assets with some degree of mistrust. In this case, we can talk about different investment objects. Our currencies, real estate, companies and so on. Investing in foreign assets seems to them more reliable. This trend has intensified after the economic crisis that began in Russia in 2014. In this regard, investments in foreign companies are currently very popular.

At the same time, the overwhelming majority of investors who decide to invest their money in such assets operate through the instruments of the stock market. There they buy shares of foreign companies.

The easiest way to do this is in the stock market. In order to be able to use its tools, you must first complete a number of mandatory steps.

First of all, you need to decide on a brokerage company. She is a kind of intermediary between the stock exchange and the investor. Of course, you can buy securities directly from foreign companies, but this is a more time-consuming and labor-intensive way.

Some investors underestimate this stage of the investment process and it is completely in vain. After all, if you make a wrong choice, you can transfer your money to scammers. In this case, the matter will simply not reach the investment itself.
In this regard, we advise investors to work only with reputable, time-tested and large brokers. This will reduce these risks to zero. For example, it could be Alpari, FIBO Group or FxPro.

So, after you have chosen a brokerage company, you need to make an initial deposit. Most often, its minimum size is 100 US dollars or euros.

After that, the investor becomes a full-fledged trader who can perform any operations on the stock exchange. That is, from this point on, you can directly invest in foreign companies.

Naturally, the minimum deposit will not be enough to form even the thinnest investment portfolio with shares of foreign companies that you like. For this, the investor will need a capital of 2.5-6 thousand dollars.

Remember, investing in shares of foreign companies only makes sense in the medium or long term. In other words, to earn a good profit, the minimum investment period should not be less than a year. It is better if the investment period is 3-5 years.

The average annual return on such investments in foreign companies is 14-21%. These figures show investments in the largest foreign companies, which are distinguished by the largest capitalization. They are also known on the exchange as blue chips. Such investments are considered conservative and the least risky. For example, it can be Google, Apple, Microsoft, Coca-Cola and many others.

At the same time, investing in undervalued foreign stocks promises much higher returns. True, investment risks in this case will also be much greater.

Binary options

Currently, investments in binary options are in serious competition with traditional forms of investments in shares of foreign companies. It should be noted, however, that classic old-school investors do not like this financial instrument, considering it too risky.

At the same time, with the help of binary options, you can get huge profits in a short time. In fact, they are a prediction about where the value of the selected shares will move after a certain period of time. The term of such investments in foreign companies can range from a few minutes to a year, and their yield is in the range of 70-80% per transaction.

When the investor is correct in his forecast, then he receives the above profit. In the event that a mistake is made, the entire bet amount is lost.

Speculative trading

An investor does not have to buy shares of foreign companies for a long time. Many traders prefer to make money on speculative trading. They perceive this financial instrument as a golden mean between the formation of an investment portfolio and playing on binary options.

The meaning of such investing in the stock market is to first buy shares of one or several foreign companies, wait for their value to rise and sell them at a profit for yourself. It should be borne in mind that the waiting time for a rise in the price of securities can take different time. In some situations, hours or even minutes are enough, in others it can take days, weeks or months.

Those investors who want to invest their savings in foreign companies, but do not consider their level of knowledge sufficient for independent trading, can use the services of trust management. To do this, they can invest in PAMM accounts or mutual funds.

Investment is the backbone of modern economic life. There are many objects where you can invest your money. We will look at how to invest in stocks. What do you need to know for this? How to choose a broker? Is it possible for ordinary citizens of the Russian Federation to buy shares?

general information

Many people have heard of this, but few know how to invest in stocks. Why is this option attractive? First of all, it is the opportunity to make high profits. Of course, there are corresponding risks (but they are everywhere, even when opening a deposit in a bank). But the fact that it is almost impossible to completely go broke on stocks may give strength to act confidently. Of course, the risk of losing part of your savings remains, but, as they say, those who do not take risks do not drink champagne.

Earning opportunity

There are three directions here:

As for the advantages of working with securities, we can say the following:

• You can start with small amounts.
• The profit potential is huge.
• The possibility of earning a high income (higher than what banks offer when placing deposits with them).

Dealing with securities also has its drawbacks:

• High risks. They can be leveled with the help of existing knowledge, but this does not guarantee their disappearance.
• Broker commission. There may be several options: it is taken regardless of the result or only on the amount of profit (this is popular when he recommends investment objects to his clients).

Who is a broker and how to choose one?

We continue to figure out how to invest our savings in stocks. A broker is a normal intermediary who works between the client and the exchange. He takes responsibility for buying stocks and provides the people who trust him with data about the market in which he operates. Regarding the choice, we can say that there are numerous ratings that will give an idea of ​​what and how should work. When familiarizing yourself with their characteristics, special attention should be paid to such information as trade turnover, cost of services, the ability to interact in real time (for a client), a simple and quick procedure for formalizing relations, as well as additional information provided by a broker.

For beginners, their activities can be positively affected by the availability of free training, a low amount of money, conducting webinars, as well as competent and adequate staff. It will also be good if there is a physically close located office or branch. You also need to pay attention to the ease of depositing and withdrawing money. When you have already made your choice, it will be useful to check if the chosen office is not a "kitchen". This is the name for organizations that achieve their own goals at the expense of customers. They will not help to buy shares of companies, but will only deceive all the money. It should be noted that there are quite a few scammers in this area, so you need to keep your ear on the alert.

Where and how can the average person buy shares?

Let's find out how you can purchase securities. For this we need a broker. Thanks to him, you can buy any stocks of companies that are only available on various trading floors. Stock markets in Europe, USA, India, Australia, China or the Russian Federation will be available for interaction. You will need to open an account with a broker, deposit money and choose a tariff plan that provides access to the required trading platform. Then we select the securities we like, look at the rate and leave a request, informing in such a way that there is a desire to purchase them.

A convenient form of interaction is via the Internet using special programs. Popular samples include QUIK and MetaTrader5. It should be noted that regardless of which purchase method is chosen, the promotions will be presented in virtual form. The paper form of a snake, familiar to many, has long been canceled. When someone purchases securities, two entries are made. One - in the company about a new shareholder (or change in the share of the old one), the second - with a broker. Before investing in stocks, you need to choose them. To do this, you can follow the recommendations below.

Selecting the attachment object

It should be noted that there are many different approaches. You can take advantage of expert advice, technical or fundamental analysis, or simply act at random, relying on your intuition. In this case, liquidity plays an important role. This is the name for the ability to quickly buy or sell the required volume of securities.

But it would be most reasonable to study at least the basics of fundamental and technical analysis and focus on them in making your decisions. You can also study the value of shares and their change over a certain period of time (month, quarter or year). Initially, it can be problematic to do everything to the highest level on your own. But don’t worry, get experience and in the future it will be possible to talk about low risks.

How to minimize costs?

A high share price is good, but you also need to be able to reduce your spending. To do this, in most cases, it is enough to adhere to certain rules:

• When a deal is concluded, its size should not exceed two percent of the account value.
• Build a differentiated investment portfolio. It will help minimize possible risks.
• Decide on your trading style. You can try several options and choose the one that suits you best. In this case, the initial capital, skills and free time that can be devoted to the exchange will have a strong influence.
• Don't shy away from stop orders.
• If you don't have the desire, time or ability to manage your account personally, trust management can be a good option.

Purchase of shares of leading Russian companies

Traditionally, blue chips are considered the most reliable. They are characterized by stability and prestige. Perhaps the reader of these lines had a desire to buy Gazprom shares. Well, know that this is quite possible. Moreover, you can buy not only Gazprom shares, but also the securities of many enterprises in general. We suggest that you familiarize yourself with this list:

Quite famous companies, right? Of course, it will be quite difficult to get a controlling stake in any enterprise, but you can start building a bright future for yourself and your children today. It should be noted that at the time of this writing, the share prices of almost all enterprises were continuing to fall. Therefore, it can be assumed that they are at the lowest level (or near it). So now is the time to invest!

We looked at how to buy shares of domestic enterprises, and now let's pay attention to foreign companies. After that, theoretical training will be given to get an idea of ​​what to look for when purchasing securities. By the way, when we invest in shares of Russian companies, we support the domestic economy. In the long term, this has significant advantages for us.

Shares of foreign companies

Often on the Internet you can find complaints that it is impossible to find a company, thanks to which it would be possible to go beyond the borders of the Russian Federation. This is largely due to a number of features. But first, let's find out what are you counting on? Usually, when they talk about foreign companies, they become hostages of the stereotype of success. But after all, each enterprise is individual, and with such an approach it is problematic to make money. So, it is necessary to understand that not all companies have access to a large market, high profitability, production capacity, affordability of investment and other attractive qualities. The situation is the same as ours - there are a few very successful enterprises, investing in which is a profitable business. But this leads to high prices.

Someone is interested in how to invest money in shares of foreign companies, because they are ready to invest tens or even hundreds of thousands of rubles. But this is not enough, because the minimum goes for several million dollars! These words can be mistrustful, so let's look at a few specific examples. There is an international finance corporation that finances medium and long term private sector investment projects. The minimum investment amount depends on the chosen project and ranges from 100,000 to 1,000,000 dollars. Agree, an ordinary citizen of the Russian Federation does not have that kind of money lying around. Another example is the European Bank for Reconstruction and Development, in which investments can start with an amount of $ 500,000. The reliability of such investments is great. But it should be borne in mind that investments are made for at least 3 years (although a period of a decade is not the maximum). This, incidentally, explains why they are not referred to as investment management companies.

Features of investing in foreign companies

Does the above information mean that the path to such an investment of funds is closed for the average person? No. Mutual funds help overcome this limitation. To do this, you need to choose a broker, replenish your deposit (although here we are talking about an amount of 3-5 thousand dollars) and choose the investment period. Keep in mind the fact that in addition to companies with experience, you can also choose startups as an investment object. This is an attractive destination that pays off at times. But at the same time, it is also very risky - for example, about 80% of start-up companies cease their work in the first year after starting operations. In general, the profitability does not exceed 20% per year (when working with mutual funds).

Also, as an alternative, you can consider not only investing directly in stocks, but also in binary options. Their essence boils down to the fact that a person predicts how the price of an asset will change. Thus, payments are made for successful predictions. But here there are many pitfalls and lovers of easy money, so if you want to use this tool, you must show considerable caution and be very attentive to the company (as well as delve into all the mechanisms of its actions).

Nuances

We have already covered a lot of issues. And they constantly talked about how to work through an intermediary. Now let's figure out how to invest in stocks without a broker. If we talk about those securities that are not traded on stock exchanges, then intermediaries are not needed. It is quite another matter if they have already passed the IPO process. Here, as a rule, work is possible only through a broker. Pay attention to one peculiarity. The fact is that some blue chips can be purchased without resorting to an intermediary. Good news, isn't it? But there is one "but" here. This is only used when working with long-term investments. By the way, banks can offer a similar service. Of course, it should be borne in mind that these financial institutions will take a commission (prepare mentally for five percent), but in the long run this is usually not so important.

By the way, if we touched on this topic, then let's find out in which stocks the banks invest their funds. After all, if these large financial institutions have money and send it to securities, then they also have professional analysts who weigh the risks. So let's pay attention to them. Let's say right away that there will be no specific names and titles. Just a general outline. So, it is important to invest in valuable shares of other banks, as well as enterprises that are actively developing. Moreover, the growth rate of the latter should be several times higher than the national average (or be equal to it, but this is only in relation to companies whose development is stable). They also invest in government bonds of different countries (but so that the profit exceeds the risks and expenses), corporate securities and shares of mutual funds.

Conclusion

So we figured out how to properly invest in stocks. The information presented here is not enough to become a millionaire the next morning, but it is enough to get that theoretical minimum, which is enough to start doing your own business along this path. After all, you always have to start from something, from some zero, from a starting point. And every person has access to long-term investment in blue chips, which will create a base. The accumulation of capital in an honest way, alas, is a long-term business and takes a significant period of human life. Perhaps only children will be able to take full advantage of the sown seeds of commerce. But even this is more than enough to start acting.

"Abroad will help us!"
Ostap Bender, character "12 chairs"

There are no patriots when it comes to taxes.
George Orwell, Brit. Writer

Investing in Russia is a huge volatility. Let us recall the year 1991, when the savings of citizens in banks depreciated at once, and it became possible to buy a kilogram of sweets for life insurance payments ... Or 1998, with its growth of the dollar rate several times in a few months ... Or 2008 when the stock market “haven for investors” lost more than 70% over the year (the worst result in the world) ... Recent events also do not add optimism.

Investment is a long-term process. It can take 10-15-20 years to amass enough capital to achieve your financial goals. And at such intervals, the reliability of investments comes to the fore. What's the point in the average return on the Russian stock market of 25%, if it is associated with the possibility of losing everything in a matter of days!

The economic risks of investing in Russia are associated with the one-sided development of the country... The strongest dependence on the export of resources leads to the fact that the profitability of most investments directly depends on the prices of energy resources. The price of oil is growing - and you can invest in any stocks of the stock market, everything will grow. The price of gas has fallen, and no matter what Gazprom does, its stock quotes will go down.

And there are also political risks. The state owns stakes in key Russian companies. The small size of our stock market allows the government and other major players to direct its movement in the right direction. Often, such “interventions” do not take into account the interests of small private investors at all.

Long-term investment in Russia is a huge risk caused by completely non-market reasons, and therefore unjustified. It is not surprising that interest in investing abroad is growing from year to year.

How to invest abroad?

Foreign investments are available not only to the elite. They are not as difficult as they seem at first, and do not require serious capital. Let's take a look at ways to invest in foreign assets in Russia. We will only talk about those options that can be recommended as reliable in terms of protection against fraud. All kinds of offshore companies in Seychelles, Nauru, Liberia, Myanmar, etc., trading CFDs, binary options and similar instruments without actually buying assets, have a very rough relation to investments.

We will consider the possibility of formally buying assets - stocks, bonds, fund units and other capital creation instruments. And you can choose the appropriate method based on your goals and financial capabilities.

In total, there are 3 ways to invest in foreign assets:

1. Investment bank account.
2. Buying assets through a broker.
3. Purchase of assets through an insurance company (English method).

Investment bank account

Banks are the most popular financial intermediary in Russia. That is why they are the first to come to mind when it comes to investing abroad. Alas, this is far from the most optimal way to invest.

The essence of an investment account in a bank is that it stores not so much money as assets. The bank, at the request of the client, buys for him shares, bonds, fund units and other securities. Large banks usually belong to various financial groups that include companies from the entire financial sector. This allows the bank to create a universal private banking service, and the investor does not have to contact other companies. This versatility, unfortunately, turns out to be the only advantage of Private banking.

The list of cons is off scale.

• First, private banking is available to very wealthy people. Foreign banks will not consider applications with amounts less than half a million dollars.
• Secondly, the bank is not interested in promoting the services of competitors and, first of all, will offer its investment products.
• Third, banks tend to have higher management fees than other intermediaries.
• Fourth, residents of Russia are prohibited from receiving money into foreign bank accounts. That is, according to the law, the profit from investments must be withdrawn to the Russian bank, and already from it to make a transfer to your foreign account. Bypassing this law is fraught with administrative and, in some cases, criminal liability.

Broker account

For those who already work on the Russian stock market, there is nothing new in brokerage services. Abroad, everything works the same way. You open an account with a foreign broker and get online access to trading on the exchange. You independently make transactions by purchasing and selling assets, and the broker takes a commission from you for each transaction.

The main advantages of this investment method are efficiency and independence. Transactions are made online almost instantly, the liquidity of your portfolio is maximized. Plus, you yourself choose when and what assets to trade.

Brokers' commissions are hundredths of a percent per transaction, which is a couple of orders of magnitude lower than in the banking sector.

Independent decision-making has a downside - time consuming and language barrier. Few Western brokers have Russian-speaking technical support, and a thorough analysis of assets for a purchase will take more than one hour, and even more than one day.

The minimum entry threshold for opening an account with American brokers is 5,000 - 10,000 dollars. Recently, some brokers have refused to open accounts for Russian investors in the light of increased tensions between Russia and the West. However, politics is politics, and business is business.

Among Russians, the most popular are companies and

In general, a brokerage account is suitable for experienced investors, for whom flexibility and complete control over their assets are the most important characteristics of a portfolio.

Large Russian brokers (BCS, Aton, Finam, etc.) also offer access to foreign markets. The minimum amount for opening such an account is 1,000 - 2,000 dollars. You have Russian-speaking support, but higher commissions and often the set of assets for trading is limited.

Investment through an insurance company

English method of investment (unit-linked plan)- the purchase of assets legally formalized as a life insurance policy. There is no insurance as such in the English method - in fact, this is an ordinary brokerage account, and the policy is just a way to optimize taxes and obtain additional non-market benefits.

The Unit-linked plan allows the investor to access an unlimited range of international instruments, including deposits with Western banks, mutual funds and ETFs, securities and derivatives, structured products, etc. The insurance company works as a broker, that is, it simply executes the order for the purchase and sale of assets, and at the same time combines the possibilities of private banking in terms of investment selection and legal protection of capital.

The main market advantages of the "English method"

• Reduced commissions.

Non-market advantages of the "English method"

• Clear inheritance procedure

The main disadvantage of insurance investment programs is low liquidity. Unit-linked plan contracts are usually long-term, concluded for 15-25 years. Termination of the contract within the first 2-3 years is fraught with complete loss of investment - the insurance company will not return you even the money that you deposited into the account. And for some more period, you can terminate the contract, having received only part of the capital in your hands.

You need to be especially careful when concluding accumulative programs. Don't forget about currency risk. If suddenly, due to a sharp jump in the rate, you cannot pay the agreed $ 100 - 500 per month under the contract, the contract will be terminated and you will lose money. In the past two years, such a situation is not uncommon, because naive investors, having succumbed to the persuasion of consultants, often entered into such programs on the brink of their financial capabilities.

In times of crisis and uncertainty, such advice does more harm than good.

The course "How to become an investor" will relieve you of many illusions about investments and teach you the basics of effective money management in any conditions.