Investments in 2025

Investments in 2025: Top Directions for Private Investors

In an environment of rising key interest rates, inflation, and digital transformation, investment strategies require a blend of traditional instruments and innovations. This overview will assist private investors from around the world in constructing 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.

Traditional Investments: Reliability and Predictability

Bank Deposits

One foundational strategy involves rouble and foreign currency deposits under the guarantees of the Deposit Insurance Agency (DIA) in Russia and the Federal Deposit Insurance Corporation (FDIC) in the USA. In 2025, interest rates on rouble deposits are projected to reach 12% per annum, while dollar deposits in the USA 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.

Comparative guarantees: up to 250,000 USD (FDIC) versus 1.4 million RUB (DIA).
Currency correlation: dollar deposits hedge against rouble risks.
Digital and neobank offers: online account opening with a low entry threshold.

Consider a combined deposit: a conservative portion in roubles and a part in dollars or euros to diversify currency risk. This is particularly crucial for residents of economically unstable countries.

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%.
US Treasuries with a 2-year yield of 4.5% per annum.
10-year German Bunds yielding 2-3%, featuring deep liquidity.

In countries with developed bond markets, it is also possible to invest in local government securities. For instance, Canadian and Australian sovereign bonds yield 3-4% per annum in local currency, providing attractive diversification.

Securities and Funds: Growth and Dividends

Corporate Bonds

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

Construct a coupon payment calendar and allocate income according to your goals.
Reinvest coupon income into dividend stocks or ETFs.
Utilise automated robo-advisors for portfolio rebalancing.

Stocks: Dividend and Growth

A combination of dividend "blue chips" and rapidly growing technology stocks helps achieve balance. In 2025, many companies launched stock buy-back programmes, 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 would comprise:

50% — dividend stocks (Gazprom, Sberbank, Coca-Cola, Johnson & Johnson).
15% — growth stocks (NVIDIA, Tesla, Shopify).
10% — trading securities (ETFs on defence and medical companies).

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

Mutual Funds and ETFs

Mutual funds and ETFs provide access to multi-asset portfolios "at the click of a button." Examples include:

Vanguard VOO (S&P 500 ETF): annual expenses of 0.03%.
iShares ESG Aware MSCI World ETF: catering to the responsible investment trend.
Gazprombank Bond Fund: fees of up to 1%.

A global portfolio may consist of 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 protection against inflation and geopolitical uncertainty. Investment options include:

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

A comprehensive approach involves allocating part of the portfolio to gold for long-term insurance and part to silver and platinum for speculative opportunities driven by rising industrial demand.

Real Estate and REITs

REITs (Real Estate Investment Trusts) enable investment in commercial and residential property via the stock market. Examples include:

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

Crowdfunding platforms like RealtyMogul and Fundrise accept minimum investments of 1,000 USD, promising returns of 8-12% per annum through operational profit and property appreciation.

Crowdfunding for Small Businesses

Platforms such as StartTrack, Boomstarter, and their international counterparts offer investments starting from 10,000 RUB or 500 USD. The startup and small business segment yields 12-20% per annum if projects are carefully selected. Advice for investors includes:

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

High-Risk Strategies: Potential and Volatility

Cryptocurrencies

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

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

Decentralised finance (DeFi) protocols offer staking and lending with returns of up to 7% per annum, but they come with the technical risks associated with smart contracts.

Derivatives and Speculation

Advanced traders utilise futures, options, and CFDs to achieve multiplied profits:

Put options on the S&P 500 for portfolio hedging 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 may lead to a complete loss of collateral. Careful risk management and stop-losses are mandatory.

Tax Optimisation: IIS and International Analogues

Individual Investment Account (IIS)

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

ISA and Roth IRA

ISA (UK): unlimited income tax-free on deposits up to £20,000 per year. Roth IRA (USA): contributions from post-tax income with tax-free withdrawals under specific conditions. These are relevant for investors with tax residence in these countries.

Diversification and Risk Management

Capital Allocation

The recommended portfolio structure for 2025 is as follows:

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 yield and stability against risk from 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 Time Horizon and Goals

Short-Term (up to 1 year)

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

Medium-Term (1-5 years)

Tools: corporate bonds, dividend stocks, ETFs. Goals include capital growth and building a financial reserve for major purchases or educational expenses in 2-3 years.

Long-Term (5+ years)

Tools: growth stocks, cryptocurrencies, IIS, REITs. Goals include retirement savings, wealth transfer, and significant investment projects. The effect of compound interest and reinvesting coupons/dividends significantly enhance overall returns.

Practical Recommendations

Tips for Getting Started

Start with three instruments to grasp the basics without feeling overwhelmed.
Utilise tax benefits from IIS, ISA, or Roth IRA.
Rebalance your portfolio annually and whenever there are movements exceeding 10%.
Maintain an investment journal for analysing results and mistakes.
Keep an eye on macroeconomic indicators: key central bank interest rates, inflation, geopolitical matters.

A balanced approach that combines traditional and innovative tools will aid private investors in effectively managing capital in 2025, regardless of their experience level or geographical location.