Where to Invest One Million Rubles: Short-Term Investments

One million rubles is a significant amount for a novice investor. When it comes to short-term investments (with an investment horizon of up to one to two years), finding a balance between profitability and capital preservation is crucial. This article outlines the main legal investment instruments available in Russia and abroad, highlighting their features and risks. We will examine key investment options (deposits, bonds, funds, P2P lending, cryptocurrencies, etc.), compare their liquidity and taxation, and conclude with examples of distributing 1 million rubles across various assets, depending on the risk level.

Main Short-Term Instruments

Short-term investments are aimed at a period of up to 1-2 years. The main priorities are high liquidity and capital protection. Let us explore popular options:

Bank Deposits

Profitability: According to the Bank of Russia, average rates on ruble deposits from the top 10 banks in April 2025 were about 18-19% per annum. For instance, deposits for 6-12 months yield approximately 19.3% annually.
Advantages: Deposits are simple and reliable, with income guaranteed by the bank and insured by the Deposit Insurance Agency (up to 1.4 million rubles). They provide fixed profits that are understandable even to beginners.
Disadvantages: The real return is low—barely exceeding the inflation rate (around 9.5% in 2024). If withdrawn early, the bank pays less interest. Taxes: Personal Income Tax (PIT) (13%) is paid only on income exceeding approximately 210,000 rubles annually.

Government and Corporate Bonds

Profitability: Federal bonds (OFZ) are the most conservative option. Short-term OFZ yields about 17-19% per annum. Corporate bonds from reliable companies can generate returns of 20-30% or more (the corporate bond index RUCBCPNS closed at around 23.7% in October 2024).
Risks: OFZ carry virtually no risk (government guarantee), while corporate bonds involve credit risk (default). Bond prices fluctuate; as the key rate rises, their market value typically decreases.
Liquidity: OFZ are actively traded on the exchange and can be easily bought and sold. Corporate bonds are less liquid, especially those issued by smaller entities.
Taxation: Coupon income and gains from the sale of bonds are subject to PIT at a rate of 13%.

Mutual Funds and Exchange-Traded Funds (ETFs)

Mutual Funds (PIFs) and ETFs allow for investment in a diversified portfolio of bonds or stocks through professional managers.

Bond funds: More conservative, providing returns in the range of 15-20% per annum (depending on the type of bonds).
Equity funds: Riskier but potentially high-yielding. Some leading PIFs delivered returns of several dozen percent annually—in 2024, specific funds showed returns of 70-100%. However, such results are not guaranteed and are associated with market volatility.
Fees: Management fees for funds are typically charged (starting from 1-3% per annum and higher). This reduces the investor's overall return.
Liquidity: Shares of PIFs are usually redeemed at the fund price on a weekly or monthly basis. ETFs trade continuously on the exchange at market prices, similar to stocks.
Taxes: When withdrawing money from a PIF or selling an ETF, the profit is subject to PIT (13%)—the same as when selling stocks.

Crowdlending (P2P Lending)

Profitability: P2P lending platforms promise high rates—approximately 15-25% per annum. According to JetLend, the weighted average rate in September 2024 was about 27.7%, while historical returns for investors (after accounting for losses) stood at approximately 19.1%.
Risks: High—there's a possibility of borrower defaults (JetLend reported an accumulated default rate of around 3.5% since its inception). The platform may fail, or you may not receive your money back on time.
Liquidity: Low—invested funds are "frozen" for the duration of the loans (typically 1-3 years). Early exit is only possible through the secondary loan market (possibly at discounts).
Taxes: Interest from P2P loans is subject to PIT at 13%.

Cryptocurrencies

Profitability: Potentially very high. In 2024, Bitcoin's price rose by 60% in the first quarter, and many altcoins saw even greater increases.
Risks: Extreme volatility and uncertainty. Cryptocurrency prices can rise or fall by tens of percent in a single day. Additionally, there are no guarantees—you could lose money due to hacks, fraud, or regulatory changes.
Liquidity: High (cryptocurrency exchanges operate around the clock). However, spreads and fees can be significant.
Taxes: Transactions involving digital currencies are subject to PIT at a rate of 13% (up to 2.4 million rubles in income) and 15% above this limit.

Individual Investment Account (IIS)

The IIS is not a separate investment instrument but a special brokerage account with tax benefits. Through the IIS, one can purchase bonds, stocks, funds, etc. The main advantage is tax deductions and/or exemption from PIT if the account is maintained for at least 3 years. For short-term investments (less than 3 years), benefits are generally unavailable, making the IIS not significantly advantageous compared to a regular account.

Foreign Instruments

Diversification is possible through foreign assets: foreign ETFs, bonds, stocks. They provide access to global markets and other currencies. However, such investments carry currency risk (fluctuations in the ruble exchange rate) and may be subject to sanction restrictions. Income from foreign dividends/coupons is also taxed at a PIT rate of 13%.

Risks, Profitability, and Taxation

Profitability: Short-term ruble investments typically yield around 15-20% annually. For example, deposits and OFZ yield approximately 18-19%. Riskier instruments—corporate bonds, stocks, and funds—may yield 20-30% and higher. Cryptocurrencies can bring hundreds of percent over individual periods, but these are exceptions and usually speculative in nature. Crowdlending offers investors returns of around 15-20% per annum.
Risks: Inflation (9-10% in 2024) "eats" into profits. The long-term interest rate affects bond prices (as rates rise, bonds lose value). Corporate bonds and P2P loans carry the risk of non-payment. Stocks and funds depend on market conditions (news, sentiment). Cryptocurrencies are the most unpredictable (volatility can exceed 50% in a week).
Liquidity: Bank deposits generally cannot be quickly cashed out without losing interest. On the exchange, OFZ, bonds, and ETFs are sold on almost any trading day (but at current market prices). PIF shares are redeemed with a delay (e.g., once a month), and funds in P2P loans are "frozen" until maturity. Cryptocurrencies can be bought and sold instantaneously on exchanges.
Taxation: As a general rule, PIT of 13% is paid on interest from deposits (over the non-taxable limit of approximately 210,000 rubles annually), coupon payments on bonds, dividends, and profits from the sale of any securities (stocks, PIF shares, ETFs). The exception is IIS benefits with long-term retention (>3 years). Income from cryptocurrency transactions is taxed at the same rates (13-15%).

Example of Distributing 1 Million Rubles

The correct distribution of capital depends on goals and personal risk tolerance, but for illustration, here are two portfolio examples:

Conservative portfolio: 50% (500,000 rubles)—bank deposit (18-19% per annum), 30%—OFZ or bond PIF (income ~17-18%), 20%—reliable corporate bonds or a conservative PIF (income ~15-20%). This composition provides relative stability: income slightly above inflation but with virtually no risk of capital loss.
Moderately risky portfolio: 30%—deposit/OFZ (18%), 30%—mixed bonds and PIFs (income ~18-20%), 25%—stocks and ETFs (heightened risk, potentially high returns), 15%—P2P loans (income ~15-20%). This portfolio aims for greater returns through stocks and P2P while still allocating some funds to conservative instruments.

Additionally, one can allocate an aggressive portion (e.g., 10-15% in cryptocurrencies or high-risk funds) for those willing to tolerate sharp fluctuations. However, to begin with, investors should study basic instruments and not invest everything immediately in speculative assets.

Conclusions for the Investor

Investing one million rubles short-term poses the challenge of choosing between profitability and safety. Bonds and deposits provide moderate yet more predictable returns; funds and P2P offer higher potential rewards, but with risks; cryptocurrencies and stocks promise significant profits but require experience and readiness for losses. The key is to diversify investments: do not put the entire capital into one instrument.

Before investing substantial amounts, it is beneficial for novices to gain foundational knowledge about financial markets. We recommend studying information from reliable sources, reading analytical materials, and consulting with professionals as needed. Subscribe to financial news and expert blogs to stay informed about market changes—this will help you make informed investment decisions.