Investing in 2025

Investments in 2025: Top 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 overview will help private investors from anywhere in the world to create a balanced portfolio for 2025, taking into account their goals, time horizons, and risk profiles. Whether you live in a megacity or a small country, the principles remain universal: diversification, analysis, and discipline.

Classic Investments: Reliability and Predictability

Bank Deposits

One of the foundational strategies involves ruble and foreign currency deposits backed by guarantees from the Deposit Insurance Agency (Russia) and the FDIC (U.S.). In 2025, ruble deposit rates can reach 12% per annum, while dollar deposits in the U.S. offer 4-5% per annum, and euro deposits yield 1-2%. For investors from emerging markets, dollar and euro deposits provide a hedge against local currency risks.

• Comparison of guarantees: up to $250,000 (FDIC) versus 1.4 million RUB (Deposit Insurance Agency).
• Currency correlation: dollar deposits hedge against ruble risks.
• Digital and neobank offers: online account opening, low entry threshold.

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

Government Bonds

Government securities provide stable income with virtually zero default risk. Examples include:

• OFZ-PD (floating coupon) linked to the Central Bank rate +1% and protects against inflation above 8%.
• U.S. Treasuries 2-year provide a yield of 4.5% per annum.
• German Bunds 10-year yield between 2–3%, with deep liquidity.

In countries with developed bond markets, investing in local government securities is also an option. For instance, Canadian and Australian sovereign bonds yield 3-4% per annum in local currency and offer attractive diversification.

Securities and Funds: Growth and Dividends

Corporate Bonds

Bonds from companies rated “A” to “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 prevent concentration risk.

• Build a coupon payment calendar and allocate income based on your goals.
• Reinvest coupon income into dividend stocks or ETFs.
• Utilize automated robo-advisors for position rebalancing.

Stocks: Dividend and Growth

A combination of dividend “blue-chip” stocks and rapidly growing tech stocks helps achieve balance. In 2025, many companies initiated stock buyback programs, enhancing returns for shareholders. For instance, companies in the oil and gas sector are returning up to 15% of capital through buybacks.

A balanced alpha portfolio could include:

• 50% in dividend stocks (Gazprom, Sberbank, Coca-Cola, Johnson & Johnson).
• 15% in growth stocks (NVIDIA, Tesla, Shopify).
• 10% in rotated securities (ETFs focused on defense and healthcare companies).

This approach combines stable income and growth potential with manageable volatility.

Mutual Funds and ETFs

Mutual funds and ETFs grant access to multi-asset portfolios with a single click. Examples include:

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

A global portfolio could consist of 60% stocks (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 protections against inflation and geopolitical uncertainty. Investment options include:

• Unallocated metal accounts (Gold OMF) yielding 6-7% per annum.
• Physical bullion and coins — high costs for storage and insurance.
• ETFs GLD, SLV — liquid access without security costs.

A comprehensive approach might consist of allocating part of the portfolio to gold for long-term insurance, and part to silver and platinum for speculative opportunities during growth in industrial demand.

Real Estate and REITs

Real Estate Investment Trusts (REITs) allow investment in commercial and residential properties via stock exchanges. Examples include:

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

Crowdfunding platforms like RealtyMogul and Fundrise accept investments starting from $1,000 and promise returns of 8-12% per annum through operational profits and property appreciation.

Small Business Crowdfunding

Platforms such as StartTrack, Boomstarter, and their international analogues offer investments starting from 10,000 RUB or 500 USD. The segment focusing on startups and small businesses provides returns of 12-20% per annum, contingent on thoroughly vetted projects. Investor advice includes:

• Create a pool of at least 10 projects.
• Evaluate business plans and financial forecasts.
• Verify the legal arrangements for equity participation.

High-Risk Strategies: Potential and Volatility

Cryptocurrencies

The crypto market remains a leader in volatility and yield. Key recommendations include:

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

Decentralized finance protocols (DeFi) offer staking and lending with yields up to 7% per annum but come with technical smart contract risks.

Derivatives and Speculation

Advanced traders utilize futures, options, and CFDs for multiplied profits:

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

Extensive leverage usage may lead to the total loss of collateral. Diligent risk management and stop-loss strategies are essential.

Tax Optimization: Individual Investment Accounts and International Analogues

Individual Investment Account (IIA)

In Russia, IIAs allow investors to receive a 13% tax deduction on contributions (up to 1 million RUB per year) and exemption from personal income tax on coupons and dividends when holding the account for at least three years. Type A provides a deduction on contributions, type B on income, and IIA-3, in a pilot mode, combines both.

ISA and Roth IRA

ISA (UK): unlimited income with no tax on contributions up to £20,000 per year. Roth IRA (USA): contributions from “post-tax” funds, with free withdrawals without taxes under specific conditions. These are relevant for investors domiciled in these countries.

Diversification and Risk Management

Capital Allocation

Recommended portfolio structure for 2025:

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

This allocation combines returns and resilience to the risks associated with various markets.

Risk Hedging

Tools for portfolio protection include:

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

Investment Timelines and Goals

Short-Term (up to 1 year)

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

Mid-Term (1–5 years)

Instruments: corporate bonds, dividend stocks, ETFs. Goals — capital appreciation and building a financial reserve for significant purchases or educational objectives within 2-3 years.

Long-Term (5+ years)

Instruments: growth stocks, cryptocurrencies, IIAs, REITs. Goals — retirement savings, wealth transfer, major investment projects. The effect of compounding and reinvesting coupons/dividends significantly enhances the final yield.

Practical Recommendations

Starting Tips

• Begin with three instruments to familiarize yourself without overwhelming.
• Take advantage of tax benefits provided by IIAs, ISAs, or Roth IRAs.
• Rebalance your portfolio annually and whenever there are movements over 10%.
• Maintain an investment journal to analyze results and learn from mistakes.
• Monitor macroeconomic indicators: central bank key rates, inflation, and geopolitical conditions.

A balanced approach that combines classic and innovative tools will enable private investors to effectively manage capital in 2025, regardless of their level of experience or geographical location.