Where is the most profitable way to invest money? Perhaps this is a key issue that concerns all investors. There are a lot of financial instruments: from high-risk PAMM accounts in which income is up to 100-110%, to bank deposits at 4-5%, but with a guarantee and insurance of the account. We will talk about such a financial investment tool that Gazprombank provides - a mutual fund, or a unit investment fund.
Further, more about what it is and on what conditions investors invest in it.
Mutual Fund: History and Concept
A mutual investment fund is a joint venture of investors who trust their money to invest in various financial instruments: stocks, bonds, real estate, precious metals, energy, etc. They themselves cannot do this for various reasons. Some do not have knowledge and experience, others have time, others have both.
But, as they say, money should work, and they decide to put it at the disposal of the trust company. She, in turn, receives commissions, and invests them in various tools. The problem is that no one gives guarantees in generating income, and if investors' money "merges into the pipe", then no return is provided.
Mutual investment funds first appeared in the United States, back in 1924. But during the period of economic crises and financial illiteracy of the American population, no one believed in them. The logic of the people was simple: "We do not know these managers where they will invest - we do not assume." We agree that many today argue in exactly the same way, although in the information age, everything can be checked and traced.
Let's talk about Gazprombank, whose mutual funds are also widely represented. Further about this.
A little bit about the company
Gazprombank Bank is today one of the most famous credit institutions in Russia. A decade of successful work allowed him to earn a lot of positive feedback about the work. But deposits in it are low, as with other credit organizations - not more than 5-7% per annum. Given inflation in 2015 at 12%, we can conclude: the longer the population keeps money in bank accounts, the more it loses it in real terms.
Since 2004, a subsidiary has been opened - UK Gazprombank. The young company quickly began its development in the investment market. In 2015 she received an award for managing endowment capital. Today you can choose various products for investment: Gazprombank mutual funds, bonds, shares, etc. We list a few of them.
Gazprombank: Mutual Fund Plus Bonds
The mutual fund is designed for investors who want to minimize their risks. The goal is to provide income above bank deposits and inflation. Managers invest their funds in bonds with a high level of confidence rating, including federal loan bonds (OFZ). Of course, the income from these operations is lower than that of other investment instruments, however, the preservation of capital is a priority. The principle of "a better bird in the hands."
Yield of the mutual fund “Bonds plus”
If we analyze the growth schedule of Bonds Plus from Gazprombank, then, starting from July 2013 (the date of formation) and until June 2015, the yield amounted to about 35%. In annual terms, this is about 12%. The percentage, one might say, is not bad compared to bank deposits of 5-10%.
Of course, the mutual funds didn’t always grow - from December 2014 to March 2015, it “sank” from 10% to 5%, which greatly alarmed many investors who, amid economic sanctions, began to hastily withdraw their money for fear of losing everything. But after March, the mutual funds actively grew without serious hesitation.
For those who do not quite understand what mutual investment funds are, let’s say that Gazprombank does not provide any guarantees - the value of mutual funds can either grow or go negative. Shareholders are not insured against bankruptcy, unlike deposits in the same bank.
Gazprombank: Unit Investment Fund Zoloto
Those who predicted the sanctions and the devaluation of the ruble and invested in the Gold investment fund did not regret their choice. The price of gold, namely in this precious metal invested from this fund, is tied to the dollar. Recall that the devaluation and, as a consequence of this, the fall of the ruble since 2014 collapsed almost twice. This means that exactly the same amount was lost by all ruble investors, except those whose deposits were in foreign currency and precious metals.
From the very beginning of its existence, since July 2013, the mutual fund, as they say, was in a fever. Until September 2014, the rate of return fell to minus 20%, but still went to zero. Let's say that even 1% of the return per year of investment is unprofitable, since in this case it is no better than keeping money at home under your pillow.
Inflation was observed at 12%, which depreciated investment in real terms. But Gazprombank - a mutual fund, or rather the price of gold, was not to blame for this, did not depend on it. But it is worth noting that the company that manages the investment should assume all market falls. If she does not know how to do this, then, in fact, why is she needed? But we will not delve into the discussion about the effectiveness of strategies, but proceed to a further analysis of the ZIF Gold.
Since October 2014, and it was then that sanctions were introduced against Russia, and the national currency depreciated, assets began to show growth. Only from October 2014 to mid-February 2015, it reached almost 90%.
Those shareholders who "endured" received remuneration for the time when they cursed Gazprombank, mutual funds, and in general all capitalism as a system. Even high-risk assets in various PAMM accounts do not give such a percentage of profitability, where the probability of losing all capital is very high.
After such a rapid decline, the mutual funds dipped, and the total profit from July 2013 to July 2016 amounted to a little more than 60%, which, in fact, is 20% per annum.
Common investor concerns
It is worth noting that ruble investments lost half due to economic sanctions and the devaluation of the national currency. Any percentage less than 100, in fact, is unprofitable for investors.
While investments in foreign currency earlier than 2014 have kept the real value of capital today, despite the fact that income on them is equal to zero.
General conclusions
To invest in mutual funds or not is an individual matter. We will say one thing: if a company invests your money, this does not mean that the person himself has to “lie on the stove” and not think anything, expecting large incomes.
Responsibility for profit or loss lies entirely with the investor. Therefore, it is necessary to weigh everything well, to consider where exactly to invest your money. Mutual funds, of course, will yield an income higher than a bank deposit, but do not forget that in case of loss no one will compensate for the hard-earned savings.
Despite the fact that the bank Gazprombank is a stable credit institution, it does not guarantee compensation in case investors lose their capital invested in its mutual funds.