Introduction 3 Small share of conservative investors 4 Conclusion 6 References 7

Introduction

Investments and finance in a general sense are considered as means used to obtain a certain positive result. It can be monetary, defensive, intellectual, social, and so on. This interpretation of these concepts goes beyond the scope of economic consideration. From this point of view, investments and finance act as a tool for obtaining large quantity money, generating income or increasing capital. They can also be used for both. The relevance of this topic is due to the fact that nowadays the field of investment is a very well-known and widespread type. financial activities. Some invest in business, securities, others in IT technology. Some people prefer to earn a very high income in a short time, but at the same time taking on high risks, while others want to earn more moderately and without taking much risk. Investors are one of the most important entities in economic activity and act in a very diverse manner. The purpose of this work is to study the small share of conservative investors. The object of this study is the small proportion of conservative investors. The work consists of an introduction, main section, conclusion, and bibliography.

Conclusion

Conservative investments guarantee almost 100% safety of your capital and, in some cases, even a small percentage of income. Such investments are considered risk-free. These include: bank deposits, insurance savings programs, pension capital accumulation products, bonds of the state and some large issuers, usually in which the share of state participation is high, real estate. In fact, each of these instruments guarantees you the safety of your funds, and even a slight increase in it. Conservative investors rarely make investments for a period of less than 2 or more than 20 years. It is long-termism that is stability for them. One of the most famous conservative investors is Warren Buffett. His investments are always characterized by a long term, since the philosophy of this investor is that he believes that it is unrealistic to extract value from holding securities in a couple of months. Warren Buffett's average investment period is 10-12 years.

Bibliography

1. Arshavsky, A.Yu. Securities market: Textbook for bachelors / N.I. Berzon, D.M. Kasatkin, A.Yu. Arshavsky. - M.: Yurayt, 2013. - 537 p. 2. Guseva, I.A. Stocks and bods market. Collection test tasks: Tutorial/ I.A. Gusev. - M.: KnoRus, 2013. - 406 p. 3. Kuznetsov, B.T. Securities market: Textbook for university students / B.T. Kuznetsov. - M.: UNITY-DANA, 2013. - 288 p. 4. Starodubtseva, E.B. Securities market: Textbook / E.B. Starodubtseva. - M.: ID FORUM, SIC INFRA-M, 2013. - 176 p. 5. Chaldaeva, L.A. Securities market: Textbook for bachelors / L.A. Chaldaeva, A.A. Kilyachkov. - M.: Yurayt, 2012. - 857 p.

However, in Lately Investors are increasingly beginning to realize that deposits also have certain risks. A sharp rise in inflation can partially block the income on the deposit. A weakening currency can devalue the amount against potential planned expenses such as traveling abroad or purchasing imported items. The revocation of licenses from banks has become more frequent, which at best is fraught with loss of profitability while waiting for payment to be received from the DIA, and at worst - part of the funds in excess of the 1.4 million rubles guaranteed by the DIA.

In light of such changes, stock market instruments are becoming increasingly popular among private investors. However, not all instruments are suitable as an alternative to a bank deposit.

In this review, we present the closest exchange instruments in terms of reliability to a deposit for extremely conservative investors, which are simple and accessible to use, and in some respects are even more effective than a deposit.

Federal loan bonds

The return on investment under OFZ is guaranteed by the state; they are quite liquid and suitable for both long-term investments, and in order to “park capital” for several months until called upon. Moreover, in such short-term cases, a significant advantage over a deposit will be the ability to quickly and without loss of profitability withdraw funds in whole or in part for necessary needs.

OFZ-IN

For an extremely conservative long-term investor, what may be important is not so much flexibility as the reliability of the deposit and the guarantee of profitability in changing market conditions. One of the best alternatives to a deposit for the purpose of protection against inflation can be called securities

These securities allow you to consistently receive a small return above inflation, payments are guaranteed by the state and investing in them does not require any special knowledge. These papers from the class are an excellent alternative to a bank deposit and an option for forming your own pension. Unlike a deposit, the return on them will consistently outpace inflation.

Currency basket

Investments in the above OFZ-IN protect capital from inflation, but in case sharp decline exchange rate of the national currency, they will not compensate you for losses if the money was set aside for a trip abroad, the purchase of expensive imported items or other expenses in foreign currency.

Therefore, to compensate for such a risk, it makes sense to initially determine the approximate share of capital that will subsequently be used for foreign exchange expenses and store these funds in the appropriate currency. This can be regular cash or a bank deposit. When using a foreign currency deposit, you should remember that the maximum insurance payment amount will be no more than 1.4 million in ruble equivalent. Accordingly, if the ruble weakens significantly, the foreign currency amount on deposit may not be fully insured.

Eurobonds of the Ministry of Finance

Another option for placing funds in foreign currency is Eurobonds of the Ministry of Finance denominated in dollars, which makes this instrument more predictable and understandable for a private investor. The most liquid of the issues traded on the Moscow Exchange is RUS-28 with a par value of $1000 and maturity on June 24, 2028. To access a wider list of Eurobonds, you can seek advice from your financial advisor or personal broker at BCS.

Cash is also an investment

Cash in different currencies, not deposited with interest, can be a good choice in certain economic situations. During periods of increased turbulence in the markets, a reserve of free cash can allow you to get good interest rates on the same deposits or bonds with timely investments.

If you choose this option, it makes sense to go into “active waiting” mode and constantly monitor available offers to take advantage of the most effective opportunities. Then the lack of profitability during the period of being “in the cache” can be more than compensated for by a higher fixed interest rate.

Blue Chip Shares

At the risk of being bombarded with tomatoes in the comments on the topic “Shares are risky!”, I will offer the long-term investor an alternative to deposits in the form of a basket of shares of large Russian companies with government participation.

In the short term, stocks are undoubtedly too volatile to be considered on par with a deposit. But over a long-term horizon of more than 5 years, stock returns can outperform other conservative instruments. In Russian realities, the most reliable companies are those close to the state, such as Sberbank, Rosneft, VTB, ALROSA, Gazprom, InterRAO, RusHydro, etc.

For example, the index of companies with state participation, calculated by the Moscow Exchange since December 2011, at the end of 2017 brought about 13% per annum. And this does not take into account dividends received by shareholders. Of course, there were drawdowns within this period, but if an investor is counting on a long period of time, then a portfolio of shares of such companies can be a good investment with low risks and a good alternative to a bank.

At the same time, selecting suitable securities for a portfolio in this case turns out to be a more labor-intensive process than simply choosing a suitable bank deposit and requires some knowledge from the investor or consultation with a competent specialist. In addition, you need to soberly weigh how likely it is that the invested funds will suddenly need to be returned ahead of schedule.

Structured products with capital protection

Often investment companies can offer clients structured products with 100% or 90% capital protection. Such an instrument consists of an investment part, which provides increased income, and a protective part, which allows you to count on the return of a specified percentage of the investment in any outcome. Such a product can be short-term for a period of 6-12 months, or longer-term for a period of 3-5 years.

Returns on such structured products may be fixed at a level above deposit rates, or may not be guaranteed, but potentially unlimited. It is worth noting that the guarantor of return on investment, unlike a bank deposit, is not the state, but the investment company itself. Therefore, the level of reliability in this case is closer to a corporate bond than to an OFZ.

In addition, you must carefully read the terms and conditions of the structured product and make sure that the return of the guaranteed amount is unconditional, i.e. did not depend on market conditions. Also, do not confuse capital protection products for conservative investors with high-yield instruments with increased risk, which may be similar to each other upon superficial examination.

IIS

Don’t forget about such a tool as an Individual Investment Account. are probably well known to you and do not need to be listed. It can be used in combination with the ruble instruments listed above and bring additional profitability in the form tax deduction, which over the long term has a significant impact on the final financial result.

Volatility is always present financial markets and is one of the permanent conditions during operations. The currently observed high market volatility provides professional participants with additional opportunities in the field of asset management and increasing the efficiency of transactions. In combination with high-quality risk management, the current conditions create the prerequisites for increasing the profitability of clients’ investments. You should choose the right strategy.

There can be at least three options: protect your capital, earn money in the short term and earn more over a longer time horizon. It all depends on the goals and risk tolerance of the investor.

Conservative investor

The risk of this strategy is minimal, and therefore it is quite feasible for beginners. If you decide to protect your capital, then you should opt for a conservative strategy. It involves investing exclusively in fixed income instruments and guarantees almost 100% safety of your capital. This type of strategy is aimed at investors with preferences for minimal risk and profitability at the level of a bank deposit, including on a short-term time horizon.

Fixed income instruments include bank deposits, insurance programs, pension capital accumulation products, bonds of Russian companies and constituent entities of the Russian Federation. The small profitability of a conservative investment is covered by a guarantee of capital safety.

Currently - during a period of instability in the Russian stock market Many investment companies adhere to a conservative management strategy, which invests primarily in fixed income instruments of government and quasi-government issuers. From the point of view of investment products, the preferences of many management companies come down to the choice of closed-end mutual funds. This toolkit most fully meets modern market conditions and allows you to take business efficiency to a whole new level.

Moderate investor

This is a medium-risk strategy and is suitable for investors with positive investment experience.

Moderate investing is somewhere between aggressive and conservative investment vehicles. The profitability of such investments can be comparable to the profitability of aggressive instruments. However, it should be taken into account that their risk of losses is much higher. As a rule, investments are made in blue chip stocks (the largest companies, the bankruptcy of which is unlikely in the foreseeable future), bonds of large issuers, mutual funds of bonds of non-state companies, mixed investment funds and very rarely second-tier securities.

However, according to experts, high volatility in the market makes this strategy less effective. In such a market, an aggressive strategy, i.e. buying on the decline and selling on the rise, can bring higher returns.

Aggressive investor

The main goal of investing for him is to significantly increase the starting capital. This type of strategy is aimed at investors who are willing to take increased risks to obtain returns above the inflation rate. Instruments for “aggressive” investment are mainly high-yield liquid instruments (first-tier shares), bonds of small, medium-sized and some large companies and derivatives of securities - futures and options.

This strategy is one of the riskiest, and therefore it is recommended for fairly experienced investors.

According to Viktor Markov, senior analyst at Kapital Management Company, given the subdued prospects for the global economy this year, mainly due to problems in the eurozone, it is wiser for investors to choose index and balanced strategies. “Because index funds allow shareholders to participate in the acquisition of liquid and promising companies, and balanced funds provide shareholders with insurance against possible risks of the global economy. A risky strategy can only be recommended to advanced investors who know how to assess corporate risks,” V. Markov said in an interview.

To sum up, we can conclude that the crisis has significantly expanded the possibilities for choice. Therefore, the most promising investment strategy is to search for either a “safe haven” or the same “growth points.”

Natalia Ostroumova

When we hear the word “conservative”, something related to stability and immutability comes to mind. The meaning of the word according to the dictionary is to preserve, preserve, protect, defend the old. There are even conservative investments – i.e. with minimal growth and low, but stable, income, and with virtually no risks. But is this really so, and what is it? conservative investments Today?

There are three types of investment strategies - conservative, moderate, and aggressive. So, the main task of a conservative strategy is the safety of your capital. It is not aimed at growth, or at generating income. Its task is to protect against losses and preserve your capital. We’ve decided on the concept, let’s move on.

Typically, conservative investments include savings insurance, savings pension programs, government bonds and bonds of large issuers, where the share of state participation is high. All these tools practically guarantee the safety, as well as a slight increase in your capital.

All these tools exist, they are all available to individual investors, but not everyone is interested. And not because the income is low, but precisely because these are conservative investments, i.e. those that are not profitable. And many novice investors succumb to this misconception.

If we talk about investments on the Internet, or, using the Internet, then almost all of the above investments can be made remotely. It's a matter of time to figure out how. But no one wants to figure it out - it’s long, tedious, and almost useless if the income is scanty.

Hit the jackpot, and more. This is the desire of the majority of novice investors who lose their money in fraudulent projects, pyramids, out of inexperience and naivety. And it is after significant losses that those who have not given up begin to see the first glimpses of reason - they begin to study the basic concepts of the world of investment, and only then invest their capital.

Conservative investments, this is where an investor needs to start. This is the first step - to study, to understand, to plunge into the world of investing, not to drown there and not to let yourself be eaten by experienced sharks.

The second step is moderate investments, where there is more risk, but also better returns. Well, the top of this is aggressive investment. They are not available to everyone, but to many. This is high profitability, high volatility, but also the highest risk of capital loss. To play such investments, you need to be an experienced player with substantial capital. The trouble is that many, after one or two successful transactions, begin to mistakenly consider themselves game aces, enter the wrong level and lose everything. A familiar situation, sad consequences.

– what type of investment are they? I would classify them as conservative. Despite all the apparent complexity and danger, choosing a quiet account with low profitability is not difficult. Although you can play aggressively on this field, the main thing is not to overplay it, so as not to get lost.

The most conservative investments there are investments in shares of various funds and bonds. This is not difficult to do in the trading terminal.

When I compose mine, I make room for all three investment strategies. This proportionally reduces risk and increases profitability.

There's an interesting theory that says your age should be equal to the percentage of aggressive investments in your portfolio. Accordingly, the older you are, the larger your conservative portion of your portfolio should become. But having tried many theories and options, I personally determined for myself that, after all, conservatism is closer to me - although the safety of funds today cannot be guaranteed by any strategy or asset.

There are plenty of investment tools on the Internet today - from those that promise unimaginable profits to more realistic figures. But this is the task of a conservative strategy: from all this variety and, excuse me, shit, to choose exactly those assets that, in addition to preservation and protection, will generate profit.

Today the world, it seems to me, is becoming volatile, and in order to get income you need to understand investing, control your assets and greed, along with your fucking ego. This is the key to constant income and capital growth.

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© John Bogle

Hello readers and visitors to the blog site. In today's article we will look at this important topic as types of investors. After all, investors occupy a special place in financial markets.

Nowadays, the field of investing is a very well-known and widespread type of financial activity. Some invest in business, securities, others in IT technology. Some people prefer to earn a very high income in a short time, but at the same time taking on high risks, while others want to earn more moderately and without taking much risk.

Investors are one of the most important entities in economic activity and act in a very diverse manner. Next, we will list all types of investors and try to give them a brief and clear description.

The following types of investors are distinguished:

Such investors usually prefer the safety of their investments. Those. they would rather receive a relatively small profit, but with the confidence that they will receive it at all. The basic strategy for such investors is to purchase the most reliable assets for a long period of time. If we talk about reliable assets, then these are, first of all, shares and bonds of stable companies (Gazprom, Sberbank, VTB, etc.).

As for the investment period, the standard is from 2 years to 20 years. It is the long-term perspective that provides investors with high stability. After all, the longer the investment period, the lower the risk. One of the most famous conservative investors is Warren Buffett. Buffett always invests for a very long term, since he is convinced that in a couple of years it is impossible to extract the maximum benefit from owning securities. The average term that Warren Buffett manages his assets is 10 years.

• Moderately aggressive investor

Moderately aggressive investor

There is something in between conservatives and aggressors. Those. This type of investor, just like conservative ones, prefer to preserve their investments as much as possible, but at the same time try to ensure their investments with the greatest return.

The investment period is approximately 6 months to 2 years. With this approach, moderately large profits and no less moderate risks are expected.

This includes people with nerves of iron. Such investors pay the least attention to the reliability of investments. They are much more interested in expected returns. And, of course, speculators fit this description.

The investment period ranges from one minute to several days. Yes exactly! The process of buying and selling securities is very efficient; such speculators can make more than 100 transactions in a day, and the profitability can exceed 100-400% of net profit even in one month. It would seem unrealistic numbers, but they are true. The big disadvantage is that the risks with this strategy are the highest and you can lose your money in a matter of minutes or seconds. Thus, the goal of aggressive investing is to maximize profits despite high risks.

A prime example of an aggressive investor is -

• Experienced investor

Has a high knowledge of the market and is somewhat similar to conservative investors. Prefers only justified risks. Such investors select the most liquid securities and other assets.

• Sophisticated Player

Strives for the greatest possible profit, even with the threat of losing all capital.

These were the most common types of investors.