Bank deposits are traditionally considered one of the safest ways to invest money. But it has its drawbacks. Let’s sort it out in order and consider an alternative: an investment instrument that is more reliable and profitable than a deposit is the FXMM ETF.

Deposits are simple. The depositor gives his money for a strictly defined period to the bank, and the bank earns with their help. For example, he gives someone a loan at a high interest rate. The depositor receives his income in the form of interest on the deposit.

We open the application of a large bank. A deposit with the possibility of replenishment and withdrawal for 3 months will bring only 4.45%. Annual inflation is at 5.3%. No, you can’t make money like that. For a dollar deposit, the situation is even more sad: a deposit with the same parameters will bring only 0.25% per annum.

Early closing of deposits.

Reorganization of the Russian banking system.

Exchange traded fund

The stable profitability and reliability of FXMM is guaranteed by two pillars.

The fund invests in some of the most reliable securities in the world.

US T-Bills are considered one of the most reliable investment vehicles. The guarantor for them is the US government — the country with the strongest economy in the world. These securities are also called risk-free. Investors are confident that the US government will fulfill its obligations to the holders of its bonds under any conditions. Therefore, it is in them that the most experienced players invest during crises in the stock markets in order to save their money.

It is rather difficult for an investor from Russia — especially a beginner — to gain access to such a reliable instrument as US government bonds. And the FXMM fund is one of the few easy and convenient ways to do this. For 3 months FXMM ETF showed ruble

It’s all about the use of derivatives for the currency hedging operation. Currency hedging protects investments from fluctuations in exchange rates: the yield on FXMM will remain the same regardless of whether the dollar has fallen or increased. But in addition, due to the use of a specially designed mechanism, the fund receives additional profitability. It is approximately equal to the difference between the key rates of the Central Bank of the Russian Federation and the Fed.

The FXMM ETF has another feature that distinguishes it favorably from classical banking instruments: if desired, its shares can be sold on the same day they were purchased. That is, you can take your money along with the profit (in order for it to accumulate, you must, of course, keep FXMM shares for longer than a day) at almost any time.

Given the current inflation rate, classic instruments like deposits are a good option if you are afraid to spend your money, for example, on spontaneous purchases. But when you need to combine reliability, profitability and free access to your funds, there are other — more modern — ways. So believe in progress and don’t be afraid to use new investment vehicles.

By the way, recently ruble FXMM has a dollar «brother» —

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