Review of the potential investment instruments in 2016

Review of the potential investment instruments in 2016

We cannot overemphasize the relevance of investment options in the eve of 2016. The facts of instability of the Russian currency, dramatic decline in oil prices, existing sanctions and complicated political situation in the world force investors to be careful in making investment decisions and thorough weigh up investment instrument.

The variety of the instruments available for investments can put you into confusion. Therefore, the first question to ask: what is the target of making an investment? There are three main investment targets: not to lose funds, save funds and increase funds. In addition to these targets, there are some other criteria for selecting investment instruments:



required skills

Based on these criteria, let’s consider investment options, which can be profitable in 2016.

Bank deposit

Currently, bank deposits are popular among the population, due to the ease of use and transparency of the earning mechanism: you invest 100 000 roubles at the annual interest of 10% and a year later you receive 110 000 rouble. At that you should thoroughly select the reliable bank, which is incorporated in the Deposit insurance system. In this case, the funds up to 1.4 million roubles will be insured.

Nevertheless, bank deposits have some deficiencies:

the majority of the deposits do not provide for the early withdrawal; therefore, it can happen that the annual deposit, which has been deposited for ten months, will be considered as a checking deposit (as a rule, it is 0.01% per annum).

Interest rate hardly outstrips inflation in the current circumstances.

Based on the above criteria, the target of the bank deposit is to save funds. The average yield will amount to 12% per annum; the risk of loss is minimal and you do not need any special skills or knowledge.

Investment into gold

Gold acts as a safe haven asset in the periods of economic crisis. That is why today investors inevitably draw their attention to the precious metals, as fist of all, they do not want to lose their money.

It is relevant to people who plan to invest over 1.4 million roubles. It is supposed that the amount of gold is limited and the metal will never fall in price.

Investment options into gold are as follows:

Impersonal metal account;

Purchase of the gold bars or coins;

Purchase of gold futures;

Purchase of gold CFD.

The above investment options have different criteria:


Target of investment

Bars and coins





Do not lose







very high







not required

not required



Impersonal metal account is similar to the deposit and involves conversion of the client’s funds into ounces. With the rise in price of ounce, investor’s funds also will also grow. The purchase of the gold bars involves the purchase of the metal, which rises in price slower than the market and hardly ever outstrips inflation.

The work with futures and options requires trading skills in the currency and derivative markets. The risk of investment will depend on the knowledge and skills of the investor, including his/her skills of money management and experience of technical and fundamental analysis.

Investments into stock market

Stock market provides for ample opportunities for all types of investments: from conservative to aggressive, both short-term and long-term. Depending on the selected trading strategy, the yield of investment can be very high. Trading in the stock market can be conducted via Internet and involves opening of the account with a special company. After that an investor needs to choose investment method suitable for him/her and appropriate target of investment.

If you want to earn big money, it is better to buy high volatility stocks of the large companies; if you want to save money- buy bonds. The distinguishing feature of the stock market is the ability to make money both at the decrease and the increase in price of the share. Now the most popular assets among investors are the stocks of Sberbank, Rosneft, Uralkali, Surgutneftergaz, Gazpprom, MTS, etc.

Investments in the currency market

Potentially this is the most promising type of investment, which helps to personal fulfillment of an investor. The availability of the large leverage increases the chances of receiving high profit. However, one of the main factors of success in the currency market is the high-quality training and obtaining of required skills. It is believed that currency trading allows you to earn big money with the minimal investments but at the high risk.

However, in case of the adequate approach, the risks can be minimized and as a rule they do not exceed this figure at the stock market.

No matter where you will invest in 2016, remember about diversification.

Investments into derivatives market

Russian market FORTS is probably the most difficult for making investments as it requires specific knowledge. Futures represent a contract to supply commodities or stocks in future at the predetermined price. Options enable buyers to sell or buy commodities at a predetermined price. An investor pays a premium for this right. The basic assets in the future contracts are stocks, indices, commodities and metals.

The situation with the options is similar; however the liquidity of them is very low. Trading of options is based on the mathematical analysis, which is not an easy task. At the same time, the risks of investments can be predicted and minimized and the yield is quite high.

Alternative investments

Investors who prefer specific types of investments can consider the following options in 2016:

Investment in art;

Investment in startups;

Investment in internet business, ect.

The distinguishing feature of such projects is that you cannot predict future profit, and they always require long-term investments.