For those looking to invest funds as a way to make money with money, there are 7 main ways to consider in the Russian market:
- Bank deposits – this low-risk, low-profitability investment is the safest way to invest money. It also allows depositors to have instant access to their funds whenever they want.
- Currency purchases – this high-risk, low-profitability way to invest funds is contingent on currency exchange rates; however, there are too many factors (e.g. political factors, central bank decisions) for this to be a predictable and relatively safe way to invest funds.
- Precious metal purchases – this medium-risk, low-profitability way to invest funds is often considered as safe; however, there is some volatility in precious metals, especially those used in industrial production (e.g. silver and palladium).
- Stocks and bonds – this high-risk, high-profitability way can give investors great returns on investments or cause them to lose all or most of their funds. The key when making investments in stocks and bonds is to diversify risks.
- Investments in companies (crowdfunding) – this high-risk venture can increase returns; however, it’s also a much riskier venture than playing the stock market.
- Buying a ready-to-go business – while turnkey businesses can be a very profitable investment, it can also be extremely risky. It is important to have a sound business plan and understand the market very well when buying a ready-to-go business.