Investments in 2025

Investments in 2025: Best Directions for Private Investors

In the context of rising key interest rates, inflation, and digital transformation, investment strategies require a blend of traditional instruments and innovations. This review aims to assist private investors from all over the world in forming a balanced portfolio for 2025, taking into account their goals, horizons, and risk profiles. Whether you reside in a metropolis or a small country, the principles remain universal: diversification, analysis, and discipline.

Classic Investments: Reliability and Predictability

Bank Deposits

One of the fundamental strategies is to consider ruble and foreign currency deposits backed by guarantees from the Deposit Insurance Agency (DIA) in Russia and the FDIC in the USA. In 2025, rates on ruble deposits might reach up to 12% annually, while dollar deposits in the USA offer 4–5% per year, and euro deposits yield 1–2%. For investors from emerging markets, dollar and euro deposits provide a hedge against local currency risks.

• Guarantee comparison: up to $250,000 (FDIC) versus 1.4 million RUB (DIA).
• Currency correlation: dollar deposits hedge against ruble risks.
• Digital and neobank offers: online account opening, low entry threshold.

Consider a combined deposit strategy: a conservative portion in rubles and a portion in dollars or euros to manage currency risk. This is especially important for residents of countries with unstable economies.

Government Bonds

Government securities provide stable income with virtually no default risk. Examples include:

• OFZ-PD (floating coupon) linked to the Central Bank rate + 1%, protecting against inflation above 8%.
• US Treasuries with 2-year maturity—yielding 4.5% annually.
• 10-year German Bunds—yielding 2–3%, offering deep liquidity.

In countries with developed bond markets, local government securities can also be considered. For instance, Canadian and Australian sovereign bonds yield 3–4% annually in local currency, providing appealing diversification.

Equities and Funds: Growth and Dividends

Corporate Bonds

Bonds from companies rated "A"–"AA", such as Gazprom, Sberbank, Apple, or Microsoft, provide coupons of 10–12% in rubles and 5–6% in dollars. Limit exposure to such assets to no more than 30% of your portfolio to avoid concentration risk.

• Create a coupon payment calendar and allocate income according to your financial goals.
• Reinvest coupon income into dividend stocks or ETFs.
• Leverage automated robo-advisors for position rebalancing.

Stocks: Dividend and Growth

A combination of dividend "blue chips" and fast-growing tech stocks helps achieve balance. In 2025, many companies announced stock buyback programs, enhancing returns for shareholders. For example, companies in the oil and gas sector are returning up to 15% of capital through buybacks.

A balanced alpha portfolio could consist of:

• 50%—dividend stocks (Gazprom, Sberbank, Coca-Cola, Johnson & Johnson).
• 15%—growth stocks (NVIDIA, Tesla, Shopify).
• 10%—mutual funds (ETFs targeting defense and healthcare companies).

This approach combines stable income with growth potential, while managing volatility.

Mutual Funds and ETFs

Mutual funds (MFs) and ETFs provide access to multi-asset portfolios with just one click. Examples include:

• Vanguard VOO (S&P 500 ETF): annual expense of 0.03%.
• iShares ESG Aware MSCI World ETF: aligning with the trend of responsible investing.
• Gazprombank Bond Mutual Fund: fees up to 1%.

A global portfolio might encompass 60% equities (broad market and ESG), 30% bonds, and 10% alternatives, ensuring diversification and low costs.

Alternative Assets: Hedging Against Inflation

Precious Metals

Gold and silver serve as a hedge against inflation and geopolitical uncertainty. Investment options include:

• Unallocated metal accounts (Gold OMF)—yielding 6–7% annually.
• Physical bullion and coins—incurring high storage and insurance costs.
• ETFs GLD, SLV—offering liquid access without security expenses.

A comprehensive approach involves allocating part of the portfolio to gold for long-term insurance, while dedicating part to silver and platinum for speculative opportunities during periods of increased industrial demand.

Real Estate and REITs

REITs (Real Estate Investment Trusts) allow investments in commercial and residential real estate via the stock exchange. Examples include:

• Prologis REIT (logistics properties): with a dividend yield of 3.5%.
• Equinix (data centers): offering a dividend yield of 2.8%.

Crowdinvesting platforms such as RealtyMogul and Fundrise accept thresholds starting from $1,000 and promise returns of 8–12% annually through operational profit and property value appreciation.

Crowdfunding for Small Businesses

Platforms like StartTrack, Boomstarter, and their foreign counterparts offer investments starting from 10,000 RUB or $500. The startup and small business segment can yield 12–20% annually, provided the projects are carefully selected. Investor advice:

• Form a pool of at least 10 projects.
• Evaluate business plans and financial forecasts.
• Check the legal documentation for equity participation.

High-Risk Strategies: Potential and Volatility

Cryptocurrencies

The cryptocurrency market continues to be a leader in volatility and returns. Key recommendations include:

• Allocate 3–5% of your portfolio to BTC and ETH.
• Employ a Dollar Cost Averaging (DCA) strategy to reduce entry risks.
• Store the majority in cold wallets such as Ledger and Trezor.

Decentralized finance (DeFi) protocols offer staking and lending with yields of up to 7% annually, but they carry risks related to smart contract technologies.

Derivatives and Speculation

Advanced traders utilize futures, options, and CFDs for multiplicative profit:

• Put options on the S&P 500 to hedge the portfolio against a downturn.
• Futures on oil and gold for short-term trading.
• Margin trading with leverage up to 1:5 for experienced investors.

Excessive use of leverage can lead to complete loss of collateral. Careful risk management and stop-loss orders are essential.

Tax Optimization: IIS and International Analogues

Individual Investment Account (IIS)

In Russia, the IIS allows investors to receive a 13% tax deduction on contributed amounts (up to 1 million RUB annually) and exemption from income tax on coupons and dividends when the account is held for at least three years. Type A offers deductions on contributions, Type B on income, while IIS-3 in pilot mode combines both.

ISA and Roth IRA

ISA (UK): allows unlimited tax-free income while contributing up to £20,000 per year. Roth IRA (USA): contributions made from post-tax funds, with tax-free withdrawals under certain conditions. These are relevant for investors with tax residency in these countries.

Diversification and Risk Management

Capital Allocation

The recommended portfolio structure for 2025 is as follows:

• 30–40%—bonds (both government and corporate).
• 20–30%—dividend stocks.
• 10–15%—ETFs (both global and thematic).
• 5%—precious metals.
• 5%—cryptocurrencies.
• 5%—REITs and crowdfunding.

This allocation combines yield and resilience against risks across different markets.

Risk Hedging

Tools for protecting the portfolio include:

• Put options on major indices.
• Futures on gold, oil, and currency pairs.
• Currency swaps and multi-currency deposits to reduce currency risk.

Investment Timeframes and Goals

Short-Term (Up to 1 Year)

Instruments: demand deposits, money market funds, short-term OFZs. The goal is to preserve purchasing power and ensure liquidity for emergencies.

Medium-Term (1–5 Years)

Instruments: corporate bonds, dividend stocks, ETFs. Goals: capital appreciation and building a financial reserve for major purchases or educational purposes within 2–3 years.

Long-Term (5+ Years)

Instruments: growth stocks, cryptocurrencies, IIS, REITs. Goals: retirement savings, capital transfer, and significant investment projects. The effects of compound interest and reinvestment of coupons/dividends substantially increase overall returns.

Practical Recommendations

Starting Tips

• Begin with three instruments to get accustomed without overwhelm.
• Utilize tax advantages from IIS, ISA, or Roth IRA.
• Rebalance the portfolio annually and whenever deviations exceed 10%.
• Maintain an investment journal for analyzing results and mistakes.
• Monitor macroeconomic indicators: key central bank rate, inflation, geopolitical events.

A balanced approach, combining classic and innovative tools, will enable private investors to effectively manage capital in 2025, regardless of experience level and geography.