Liquid assets

The first group includes securities (stocks, bonds, options, bills, checks), cash, precious metals.

When you open a brokerage account and buy securities, be prepared for market fluctuations. Do not seek to get rid of assets as soon as the market declines. Try to stick to a set pace by purchasing securities according to your financial plan.

Don’t chase stocks with very high returns, especially in the early stages of investing. Such assets can just as quickly change direction and go down, and your pursuit of maximum profit will turn out to be a disaster.

It is worth to approach currency without emotions. In the crisis, sharp fluctuations in exchange rates are inevitable, so to protect yourself, it is recommended to keep cash in different currencies. The advice to invest half of the money in rubles, and the rest to divide between dollars and euros is still voiced by experts as the main one.

Capital protection

The second group, protective products, is designed to ensure that your capital is securely protected from a variety of factors, whether it is a short-term crisis or a prolonged economic recession. This is a kind of financial safety cushion, your stabilization fund when investing. Protective products can include bank deposits, certain types of securities (such as government debt bonds), and investment life insurance.

Although protective products, as a rule, provide income not higher than the inflation rate, their importance should not be underestimated. For example, investment insurance can guarantee a 100% return on investment even in the event of a market crash and payouts of up to 200% in the event of an insured event. Bank deposits are a proven way to save your investments and protect them from inflation.

High income

The third area is income investing. This includes high yield stocks, mutual funds and trust management.

When investing in shares, you can earn profits from dividends and from the growth in the value of shares when they are sold. The second source of profit is more important, as the dividend yield is small, only 3-5% per annum. The profitability from the growth in the value of shares is much higher.

Besides high potential profitability, financial experts consider transparency and strict state regulation to be the advantages of investing in mutual funds. Risks here are small due to diversification of investments and great investment experience of managers (of course, if we are talking about a reliable and successful management company).

Trust management is also characterized by good profitability forecasts. This investment direction is often chosen because of time saving and lack of labor costs on the part of the owner of the capital. Certain types of trust management are also characterized by a high level of liquidity.

Structured products deserve a special mention. They represent a formed investment strategy, an over-the-counter financial instrument with a certain term and a predetermined yield. Structured products allow you to earn more than bank deposits, while providing full or partial protection of capital from possible losses.

Within a structured product there are various financial instruments: securities, bank deposits, currencies, precious metals, bonds, etc., which can be used as a part of a structured product. Moreover, such a complex composition will not require special skills and knowledge from the investor at all. All that is required is knowledge of your own investment profile and certainty about the terms of investment. On average, the profitability of structured products is 1.5-2 times higher than that of deposits. They can be recommended both to investors who are willing to take risks for the sake of significant profits and to conservative investors.