So, how can one do this? And which methods are the most relevant today?
To clarify this issue, Sergey Tereshkin, the founder of RESURS, has taken the initiative. The businessman has thoroughly studied the investment market and closely monitors all developments within it, as well as in the business sector as a whole. You can familiarize yourself with the results of his entrepreneurial activities on his website: org-market.ru (OPEN OIL MARKET).
Current Methods for Purchasing Securities
According to Sergey Tereshkin, currently, there are only a few methods of acquiring securities that are convenient for individuals. These include:
- brokers;
- mutual funds;
- insurance companies.
To make an informed decision, it is essential to consider each of these methods in detail.
Brokers
Brokerage firms are one of the most common and accessible methods for investing in securities. To do this, one must enter into an official agreement with the organization, fund the account with a specified amount, install specialized software, and directly purchase the securities. The trading terminal allows transactions to be conducted from home without leaving the sofa. The only requirement is internet access.
To purchase stocks on global stock exchanges, it will be necessary to sign a contract with a foreign brokerage firm. It is important to understand that this requires depositing a significantly larger amount. Furthermore, due to the political situation and other factors, many foreign companies are currently refusing to cooperate with Russian citizens.
An additional restraining factor is the restrictions that have recently been imposed by the government.
When working with a brokerage firm, the investor will incur several costs. In addition to the cost of the securities, they may also be subject to:
- bank fees for transferring funds;
- brokerage fees for executing the transaction or purchasing each security;
- fees for inactivity (charged only by some organizations);
- taxes.
When operating in international markets, investors may face double taxation. Part of the tax goes to the government of the investor's home country, while additional taxes must be paid to the country where the brokerage firm is registered. An exception applies to firms registered in offshore zones.
It is also important to note that working with foreign organizations requires knowledge of a foreign language. To facilitate correspondence, it is advisable to use special programs or browsers with translation functionality. For phone conversations, translation services can be utilized to avoid misunderstandings and disagreements.
Access to international exchanges is also available through several domestic organizations. These firms often operate not directly but through their offshore entities.
Mutual Funds
Mutual investment funds, also known as "mutuals" abroad, allow investors to purchase shares of various companies. This method has its strengths and weaknesses. The main drawback is the high percentage that the fund charges for servicing. On average, in the Russian market, this figure exceeds 3%.
Abroad, the commission for mutual funds is capped at 2%, with many cases seeing it at around 0.5%. The selection of such companies is vast, allowing investors to choose an organization that meets all their requirements.
To become a member of a foreign fund, one can utilize the services of investment-linked insurance, which is available not only in Russia but also in many other post-Soviet countries.
Insurance Companies
As mentioned earlier, shares can be acquired through investment-linked insurance programs. This scheme is straightforward and accessible.
This method of investment has several advantages:
- policyholders can make a one-time full payment or divide the amount into several equal parts;
- funds can be invested in various assets: bonds, stocks, mutual funds, etc.;
- there is a vast choice of investment avenues;
- investors benefit from preferential taxation, as they are effectively not investing money but purchasing an insurance policy;
- investment amounts can vary, including small sums;
- when obtaining a policy, there is no risk of losing funds, as investors are guaranteed a 100% return;
- investment is protected from currency risks.
Investors can allocate their funds through an insurance company into various assets, including those not available in mutual funds.
Several companies in the domestic market allow investors to acquire securities via a policy. It is advisable to prefer international firms with significant experience in the field and a longstanding market presence. It is best to avoid partnering with newcomers.
Major companies offer attractive investment conditions. For example, one can find organizations that accept monthly contributions as low as $100.
Investors have the flexibility to manage their investment allocation across various instruments or to entrust this responsibility to the company.
Unfortunately, the number of foreign organizations willing to cooperate with Russian citizens is gradually decreasing due to various factors. The result is the restriction faced by domestic investors.
This investment method is suitable for those who are not ready to invest large sums and fear for the safety of their funds.
The abundance of methods allows individuals to find one that meets their unique requirements and enables risk diversification.
