In an old-fashioned way Kazakhstani people keep their money on bank deposits, as there is a deposit insurance system, however, the amount in foreign currency cannot exceed KZT5 million. But the con of deposits, especially in foreign currency, is a low interest rate, not more than 1%.
The real estate is traditionally considered as a source of investment as well. But it is important to understand the market peculiarities, writes Forbes.kz, as the situation may change every year and every month depending on various factors. Lately, the landlords have had to lower their prices so that customers do not leave.
The stock market is an excellent tool for earning money, but often very risky, warns Forbes.kz. To be more precise, if there are securities with a guaranteed income on the stock exchange, it will be very low. The more likely to earn, the higher the risk and lose.
Universal life insurance is one of new financial instruments on the Kazakhstan market. And this tool is conservative with a fixed and guaranteed income. Life insurance companies use this tool. However, in Kazakhstan their activities are so strictly regulated by the National Bank that insurers can only reinvest the money of depositors in limited types of securities.
For example, highly liquid assets should be at least 110% of all liabilities of the insurance company. It means, if suddenly all the depositors come at once to withdraw their funds, these funds are secured by 110%! And the insurer's capital is not included. Nevertheless, life insurance companies are stable in their activities and grow even during crisis periods, by 32% per year over the last 6 years on average in Kazakhstan.
In the world practice life insurance companies are the most stable financial institutions. They are not involved in issuing loans, and therefore do not expose their clients' funds to high credit risk. Instead, they make investments in high-grade securities. This ensures the income stability and investment reliability. A depositor does not even necessarily have to be an expert in the stock market.
Also, the income is tax-exempt. And insurance coverage guarantees receiving the entire amount immediately upon the occurrence of possible adverse events in the depositor’s life. Insurance payments are inherited.
In the Kazakhstan market, accumulative insurance is represented by "Nomad Life" Company’s product "Nomad Gold”. The annual rate of return here is up to 3.26% in dollars. This, as Forbes.kz notes, is three times higher than a bank deposit.
To make sure of not losing anything, it is definitely not worth investing in one tool or financial institution only; it is really better to keep eggs in different baskets. And what baskets it would be depends on how much you are willing to risk your money, writes Forbes.kz.
Source: https://forbes.kz/finances/insurance/kak_ne_tolko_sberech_no_i_vyigodno_priumnojit_svoi_krovnyie/
Photos per websites: findfxway.com, 1zoom.ru
