As of 2015, an individual investment account (IIA), new type, has been added to ordinary brokerage accounts in Russia. Invented by the authorities to encourage investment, they provide an additional benefit of up to 52 thousand rubles a year through a tax deduction. To use it, one must observe the only condition, to keep an account open for three years at least.
For those who are not confident in their own abilities and afraid to trade on the exchange through an intermediary broker, or simply do not have enough time, there are many options in which professionals will take control. They will require a commission in the form of a fixed amount or percentage from the total income (or both) for their work. The drawback is that profit is not guaranteed.
It is possible to invest in a mutual investment fund by purchasing its share from a specialized company. The money will go for pre-agreed asset purchase of differing degrees of reliability depending on the fund policy.
A separate type of investment funds, exchange traded fund (ETF), are traded on exchanges. Their shares are side by side with companies’ securities in which they are invested. Many ETFs choose a specific index and buy shares in the companies represented in it, so it is easier for end investors to monitor the fate of their money. Funds can also focus on a specific sector of the economy: buy securities of telecommunication, transport companies, or, for example, “blue chips”, the largest and most successful corporations (mutual funds often do the same).
Non-state pension funds (NPFs) will allow saving up for old age, but do not provide other opportunities for early fund withdrawal except for their transfer to a competing fund. Life insurance is arranged in a similar way: a more risky and profitable investment insurance or safety-oriented endowment. Banks often become partners of insurance companies, and their employees actively offer their clients policies without warning about risks, including the fact that the safety of investments in life insurance, unlike deposits, is not guaranteed by the state.
Photos are from open sources.