A share is a piece of paper that entitles you to a share in a company's business. When you buy shares in a company, you become its co-owner. The more shares you have, the more you can influence the management of the company.
The owner of shares can earn in two ways: on the difference in value (bought at a low price, and sold at a higher price) and on dividends - part of the profit that the company shares with shareholders.
Pros:
- High liquidity: you can quickly sell securities at the market price.
- Potentially high returns.
- You can invest both large and small capital.
Participates in strategies:
SAVE - medium-term 1/2 of the working volume
FIX - Medium Term Full Working Volume
DYNAMIC - short-term full displacement
Bonds are debt securities. The buyer of the bonds lends the issuer at interest. When receiving your money, he undertakes:
1) return them by a certain date.
2) regularly pay a coupon - a percentage for using your money. How often the interest will be paid is set by the company before the start of the sale. Usually they are paid up to 4 times a year.
The fulfillment of obligations directly depends on the reliability of the issuer - in other words, whether it will become bankrupt.
Each bond is issued for a specific period (1, 3, 5, 10 or more years). When the maturity date arrives, the issuer will return the face value of the bond in full. If you want to return the money earlier, the bond can be sold to another investor, keeping part of the coupon. The coupon yield on the bond is calculated daily, so the buyer will reimburse you for the accrued interest since the last payment date. This interest (accumulated coupon income) is added to the current market price of the bond.
Pros:
- Reliability and stability of investments: payment of interest and redemption of bonds are guaranteed.
- When you buy a bond, you immediately know how much and when you will receive it.
- The owner of the bond has the right to sell his securities before the maturity of the obligations.
- Bonds are a conservative tool that helps not to get a high yield in a short time, but to save investments. However, it is still very beneficial.
Participates in strategies:
SAVE - Medium Term Full Working Volume
FIX - not involved
DYNAMIC - not involved
ETFs (Exchange Traded Funds) are ready-made portfolios of securities or other assets.
An investment fund buys a large, diversified portfolio of assets and then sells it piecemeal. To do this, the fund issues its own shares. It turns out that by purchasing one share of the ETF, the investor owns a share of all the assets of the fund.
Funds can consist of both stocks and bonds, or both instruments in equal proportions. There are funds that invest in commodities, such as gold.
Almost all exchange-traded funds are tied to the movement of some index. An index is an indicator that is calculated based on the market price of the shares of companies that the exchange or the fund itself considers important. This means that ETFs allow you to invest not only in individual companies, but also in entire industries, countries or markets. If most of the companies in the index rise, the price of the fund's shares will also rise. If it falls, the situation will be reversed.
The owner of ETF shares can earn not only on the rise in the price of shares, but also on dividends, if the fund pays them.
Pros:
- This is beneficial: the fund's shares are worth significantly less than individual shares of companies.
- Allocation of funds across different assets - that is, portfolio diversification - helps to reduce risks. Investing in funds is safer than investing in individual securities.
- The management company's remuneration is included in the price of the fund's shares on the exchange, so there is no need to pay extra for its services.
Participates in strategies:
SAVE - medium-term 1/2 of the working volume
FIX - Medium Term Full Working Volume
DYNAMIC - short-term full displacement
Futures - a security that is a contract to buy or sell an underlying asset in the future at "today's" (current market) price. The underlying asset can be anything: currency, oil, gold, bonds. The terms of the contract: the term, the quality of the goods and the time of delivery are predetermined. This is a condition for the contract to be admitted to trading on the exchange.
Futures are often used for speculation, that is, for a short-term investment in assets in order to resell and profit from it.
Pros:
- The risk of changes in the value of the underlying asset is limited. The main purpose of futures is to reduce market risks (changes in value).
- When making transactions, you do not need to pay the full value of the asset. The minimum payment is 2-10% of the transaction - a guarantee that you will fulfill your obligations.
- Futures are not emissive securities and they are not held in a depository. This reduces the cost of commissions, which helps to reduce the cost of transactions.
Participates in strategies:
SAVE - does not participate
FIX - short-term full working volume
DYNAMIC - not involved
Investing in currencies is a good way to diversify your portfolio, reduce your risk of loss, and increase your returns.
On the exchange, buying and selling takes place at prices set by brokers or traders. Thus, the exchange takes place between two agents without an intermediary in the person of an exchange office or a bank.
You can work with the currency short-term and long-term. As well as. there is a possibility of earning both on an increase and on a decrease.
Pros:
- High liquidity: you can quickly sell securities at the market price.
- Potentially high returns.
- You can invest both large and small capital.
Participates in strategies:
SAVE - does not participate
FIX - not involved
DYNAMIC - short term 1/2 of displacement