Mutual investment funds, or PIFs, are a collective investment tool that allows you to save a significant amount of money on your own, but without having to spend time studying the intricacies of the market. Here's how it works:
you contribute money to the fund. Most often, the entry threshold is minimal - from 10,000 ₽;
the management company (MC) decides which instruments to invest the fund's assets in. These may be only shares or only bonds, but more often MCs create mixed portfolios of securities. This allows for the risks of investing in shares to be offset by the guaranteed yield of bonds;
After you receive income, you pay a commission for the services of the management company.
The advantage of mutual funds is that you do not save time guangdong mobile number database and receive qualified assistance from professional investors. They are interested in you really getting the maximum profit, because the size of their remuneration depends on it.
Disadvantages of this method of investing:
you cannot choose where exactly your funds will be directed and how many securities will be purchased;
You have to pay a portion of your profits to the management company for its services. This means you risk saving less than you would if you invested completely independently.
How much do you need to save?
Follow two simple rules:
put aside all the money you can;
do this without compromising your life today.
Get into the habit of saving and putting aside for the future, open deposits, invest, receive income and invest again. Do not limit yourself in everyday joys and do not reduce your usual level of comfort just to save for retirement. But you should refuse unnecessary expenses. If you can save on something, try to do it. For example, instead of buying ready-made coffee, brew it at home and take it with you to work.
It’s impossible to calculate in advance how much money you’ll need in retirement — inflation makes it difficult, first of all. But on average, you should expect an amount roughly equal to your standard monthly expenses. Since you’ll be able to continue investing in retirement, your capital will continue to grow. Calculate how much money you’ll need for 20 years at your current level of spending. Then subtract any payments you’ll receive from the government. The final amount should be enough if you save it up by the time you retire.
When to start saving
It's never too late or too early to start saving for the future. The sooner you do it, the more likely you are to accumulate a significant capital that will be enough for everyday life, unexpected expenses and planned trips. And even after retirement, you can continue to save, earn on deposits and investments.