What are OFZs (federal loan bonds)? These are securities that are also called people's securities. The issuer and guarantor of the reliability of the investment product is the Ministry of Finance of the Russian Federation. The essence of such an investment is that you lend money to the state for a certain period. The investor receives income throughout the entire period of issue of securities. After their validity expires, the investor is returned the full cost of the bond.

Types of OFZ

To calculate the yield, you must first find out what types of government bonds are divided into.

Bank bonds

OFZ at par

Any OFZ has a certain nominal price - as a rule, it is 1000 rubles. Theoretically, if you have 1,000,00 rubles at your disposal, you can already lend to the Russian government. But bonds are not traded at their nominal price on the market, but as a percentage of their nominal value.

Let's say one bond is trading at a price of 105 (%). This means that the real value of the security is not 1,000 rubles, but 105% of 1,000 rubles. = 1,050 rub. The real cost can be either more than 1,000 rubles or less than 1,000 rubles. If one OFZ with a face value of 1,000 costs 95 (%) - this means that its real value is 950 rubles.

OFZ at par include the following types bonds:

1. OFZ-IN. Zero coupon yield is formed based on the CPI (index consumer prices) in Russia.
2. OFZ-AD. The first issue of securities with debt amortization in Russia was carried out in 2002.

The main difference between an obligation with debt amortization and a regular one is that the maturity date usually begins after a certain period of time. (For example, it may be issued in 2016, and repayment on it will begin only in 2020.) Quite often, such securities are issued for the Pension Fund.

By payments

Funds will be accrued daily, with payments once every six months. Coupon income (CI) - what is it? This is the money that the company (in this case the state) will pay you for the fact that you lent it money:

1. With a constant income. Payments are fixed for the entire validity period and do not change, i.e. the investor receives the same amount over a certain period of time. For example, if the obligation was issued in 2009, coupon payments would be made every 182 days.
2. With a fixed coupon. Since 1999, the Ministry of Finance of the Russian Federation began to issue this type of bonds. In fact, the name has nothing to do with reality, since the coupon rate may change over time. However, the investor will learn about all changes in advance. For example, for a certain time an investor receives payments of 8%, and then his income decreases to 7%.
3. With variable coupon income. To calculate profits, inflation and index indicators for one-day ruble deposits are used. Profit/loss depends on the behavior of money market rates.

Payments occur within certain periods

How to calculate bond yields

According to OFZ-PD (with constant income) cash payments carried out 2 times a year (every 182 days). They also have accrued coupon income. This value is distributed by day - for example, if every 182 days an investor receives 100 rubles, then his daily coupon income is 100/182 = 0.55 rubles.

If before the purchase the NKD is 30 rubles, this means that 30 rubles. has already accumulated and 70 more should accumulate.

Let's look at the following example:

The cost of the bond will be 1,000*105%=1050 rubles.

We add the accrued income tax and get the final value of the security = 1050 + 30 = 1,080 rubles. (not including the commission charged by the broker).

Every 182 days, the investor will receive 50 rubles, which will be transferred to the brokerage account and the investor’s current account (depending on the terms of the agreement).

When purchasing OFZs with a constant coupon income, the investor calculates his income based on a special index (for example, RUONIA).

Investment calculation example

Advantages of investing in OFZ

Let's consider the advantages:

1. Small entry threshold (you can invest only about 1,000 rubles by purchasing one security)
2. It is possible to make an investment by independently choosing the maturity date of the security.
3. High profitability. IN last years banks are reducing interest on deposits and the average return on them in Russia is 5-6%. By investing in OFZs, an investor can expect to pay from 7 to 10.4% per annum.
4. The risk of losing your savings is very low. The government is the guarantor of OFZ reliability, so it turns out that an investor can only lose their investments if a default occurs. This prospect is unlikely, but if it comes true, the investor's investment will be protected. The state is responsible for its obligations with its property. Only bonds issued by foreign issuers are more reliable than Russian OFZs. However, they are inferior to Russian securities in terms of profitability.
5. Easy to purchase. In order to buy government bonds, you need to contact the brokerage department of VTB or Sberbank. Before purchasing securities, you must sign a brokerage service agreement with the bank.

Underwater rocks

When buying OFZ bonds, an investor must not only pay the full price for them, but also a commission to his broker. The amount of commission payable depends on the value of the securities purchased. If the OFZ amount is less than RUB 50,000, the investor must pay a commission of 1.5% of the value. If a citizen purchases securities in the amount of 50,000 rubles. up to 300,000 rubles, then the commission amount will be 1%. If the value of securities exceeds RUR 300,000.00. – 0.5%.

Due to the fact that the investor pays a commission to the broker, the final profitability decreases. With a simultaneous commission of 1.5%, OFZs will have a yield lower than a bank deposit.

When selling OFZs, the bank (broker) also removes a commission of 1%. This is another factor that reduces profits.

If an investor sells bonds during the first year, he will earn nothing at all. OFZ-n is sold at par, without paying any interest. But since the bank commission will be removed, this means that the investor will not only earn nothing, but will also lose part of his investment. If a citizen has owned bonds for more than 1 year, he will receive interest for previous periods in full.

Comparison with other financial instruments

The issue of OFZ is designed primarily for the masses who do not have in-depth knowledge in the field of investments and financial investments. Highly qualified financiers often give their preference to securities that have a fairly high degree of reliability, but are more profitable.

Experienced investors usually form a financial portfolio consisting of various instruments. The presence of corporate bonds in a portfolio increases the potential return by 1-2%.

You can purchase bonds at a bank branch

When and where to buy

An individual can purchase OFZs, which were issued in March-September 2018, only through the 2 largest banks: Sberbank and VTB. After signing an agreement with a broker, a bank client can choose an investment strategy through his personal account remotely. The Sberbank Investor application was developed for Sberbank clients and special program QICK, where an investor can make transactions in securities. The purchasing process is easy and not burdensome.

Owner state bonds can sell them only in the bank where he purchased them. They cannot be passed on to third parties, but can be left by inheritance. You cannot buy OFZs from a private person; they cannot be used as collateral when obtaining a loan.

What is IIS

This is specially designed Russian authorities a product to stimulate the purchase by Russian citizens of shares, OFZs and other securities. By opening an Individual Investment Account, the investor will receive not only coupon income, which is not subject to personal income tax, but also a relaxation in the payment of income tax (to receive the benefit, you must be officially employed).

The beginning of 2017 was marked by the announcement of the Ministry of Finance about the launch of a new investment program designed to be accessible to the bulk of the population. It's about about federal loan bonds (OFZ) or, as they are also called, people's bonds, the sale of which started on April 26. The purpose of federal loan bonds for citizens is to educate the population in the field of investing, increase their financial literacy and prepare them for work in the stock market.

What are public loan bonds?

In essence, they are a type of debt securities for which the issuer is the state. The state issues public bonds and replenishes its treasury through their sale. They have a limited validity period, after which the owner receives the nominal value of the OFZ in cash equivalent and income in the form of interest payments.

Since the borrower in this case is the state itself, such investments are by far the most reliable and in a safe way increase money. OFZ for the people is a tool for obtaining a guaranteed income, the amount of which exceeds the income on a bank deposit. Government bonds can be purchased using a simplified scheme at Sberbank and VTB24 branches; all you need is a passport and money.

How to calculate profitability?

The face value of one federal loan bond is 1,000 rubles. Investors have the right to purchase from 30 to 15,000 government bonds. As a result for minimum investment you will need 30,000 rubles, for the maximum – 15,000,000 rubles.

The validity period of people's bonds for individuals is three years, after which the owner will receive maximum profit. It is also possible to request early repayment one year after purchasing the OFZ, but the income in this case will be significantly lower. If a redemption request is made in the first 12 months, the income from the bond will be zero, since only the face value will be returned without interest for this period.

Interest is calculated once every six months. The average OFZ yield for citizens is 8.5%. But in order to give owners an incentive to keep their deposit unclaimed for the full term, the interest on payments will increase by 0.5% every six months. That is, in three years the rate will increase from 7.5% to 10.5%. Only in this case will the income from OFZ be higher than from a bank deposit. Coupon payments are made every six months. If government bonds were purchased on April 26 (the day of placement for sale), then the yield will be 9.03% per annum.

Yield of the People's Loan Bond

The nominal value of one OFZ is 1000 rubles. Based on this, you can calculate its profitability for the full period of validity, that is, for three years.

Payment no.	payment date	Coupon period, days	Bid, %	Coupon income, rub.	Bond payment, rub
1	01.11.17	189	7,5	38,84	38,84
2	02.05.18	182	8	39,89	39,89
3	31.10.18	182	8,5	42,38	42,38
4	01.05.19	182	9	44,88	44,88
5	30.10.19	182	10	49,86	49,86
6	29.04.20	182	10,5	52,36	1052,36
Total:				268,21	1268,21

You should take into account the commission that the agent bank will charge for opening an account and servicing. Its size depends on the amount of securities purchased and is:

• up to 50,000 rub. – 1.5%;
• from 50,000 rub. up to 300,000 rub. - 1%;
• from 300,000 rub. up to 1,000,000 rub. – 0.5%.

The commission will also be charged for early repurchase and will be 1.5%, which will affect the decrease in the yield of the government bond. For these reasons, it is more profitable to purchase OFZs and wait for their entire validity period.

The difference between OFZ profit and a bank deposit

There are significant differences between 2017 Federal Bonds and a bank investment. These are investment terms, commissions, interest rates, taxes, guarantees, the possibility of transferring ownership rights and others. If, for comparison, you invest 30,000 rubles in Government Bonds and put the same amount on deposit in a bank, then the picture will be as follows:

	Deposit	OFZ
Amount invested	30 000	30 000
Investment term	1 year	3 years
Interest rate	6.7% per annum	7.5-10.5% per annum
Billing period	6 months	6 months
Commission		1.5% upon purchase, 1.5% upon early presentation for redemption
After 1 year
Interest/coupon income	RUB 2,010	RUB 2,250
Commission		900 rub. (including early redemption)
3 years later
Interest/coupon income		8069 rub. (for the entire period)
Commission		450 rub.
	Total
Return on investment	6,7%	6-8.5% (depending on the moment of presentation of OFZ for redemption)

Thus, by presenting OFZs for individuals for redemption before the expiration of the planned repayment period, the owner will receive a lower return compared to a bank deposit. However, when holding securities throughout their entire validity period, the advantage over a bank deposit is obvious.

Pros and cons of public bond yields

Pros of people's bonds:

• 100% reliability – the state guarantees the safety of invested funds in full;
• the opportunity to receive higher income than from bank deposits with minimal risks;
• no commission charged by the bank for scheduled OFZ repayments;
• the possibility of reinvesting coupon payments;
• the maximum investment amount is practically unlimited – up to 15 million rubles;
• early redemption of securities is possible on any day, but with the loss of part of the income;
• papers can be inherited by other individuals;
• foreigners living in the Russian Federation for more than six months have the right to purchase OFZ.

Disadvantages of federal loan bonds for citizens:

• the need to pay income tax of 13%;
• minimum investment amount is 30,000 rubles;
• commission for the purchase of securities;
• losses due to early redemption of bonds;
• a ban on the sale and use of government bonds as a contribution and collateral;
• Russians permanently residing abroad cannot purchase OFZs.

Taxation on OFZ yield

Currently, public government bonds are subject to a personal income tax of 13%. According to Deputy Finance Minister Ilya Trunin, the government has already submitted a bill to exempt income from government bonds from income tax. The adoption of the law is only a matter of time.

People's bond yield in case of inflation

Three years is a long enough period to invest money in purchase of OFZ for citizens. Therefore, there is a risk of depreciation of funds invested in public bonds due to accelerated inflation. However, according to experts, since 2015, inflation in our country has been steadily declining and is projected to drop to 4% by the end of this year. Against this background, rates on deposits in banks will decrease, as a result of which the yield on debt securities will become more attractive.

There is no secondary market for OFZ for individuals in 2017. Only the state can buy them, as a result of which there is a certain risk in terms of depreciation of the invested funds. But such problems, as a rule, appear gradually and can be predicted. Therefore, the owner of the securities will be able to go to the bank at any time and present the securities for redemption, albeit with a slight loss of profitability. Thus, OFZ can be considered a fairly reliable investment.

When can all the profits from people's bonds be withdrawn?

The maturity of the securities is 3 years. Therefore, in order to get the maximum yield from purchased national bonds, it is best to adhere to the specified period. The owner will return the securities to the state and receive the face value of the securities and interest. In addition, if you repay on time, you will not have to pay an additional commission to the agent bank for the transaction.

Features of the yield of the people's bond 2017

The main feature of the yield on federal loan bonds for individuals is the limited validity period of this instrument, that is, three years. You can purchase them only in two Russian banks - Sberbank and VTB24. Other methods of purchasing - through exchanges, from private companies or other intermediaries - are illegal. It is impossible to use OFZ as a contribution, collateral or gift.

A simplified scheme for purchasing these securities has been developed for individuals. To do this you need:

• contact the agent bank branch, for which you only need a passport;
• open a brokerage account (specialized account for transactions on the stock market);
• conclude an agreement with the bank, after signing which the buyer becomes the full owner of the OFZ.

You can also complete the transaction without contacting the bank. To do this, just go to your personal online banking account at Sberbank or VTB24 and conduct the transaction remotely.

Readers continue to bombard me with requests to tell me more about buying federal bonds. Well, this seemingly simple matter actually has some nuances that, in some cases, will save you a lot of money and nerves.

As a necessary introduction Once again I will warn you against the desire to trust authority and, turning off your brain, shove your money somewhere at random. Digest all information received yourself, no matter who it comes from. Even if Vladimir Putin or Oleg Makarenko gives you advice, still strain and try to understand not only their conclusions, but also full speed their reasoning.

1. Novice investors usually choose between OFZs and money on a bank deposit. Interest rates in reliable banks are approximately the same, some people think, so why go to the extra trouble and get acquainted with the exchanges?

In fact, OFZs have four important advantages.

Firstly, since OFZs are issued by the Ministry of Finance, they are absolutely reliable: they can only fall along with the entire ruble system. Only 1.4 million rubles are protected in the bank. It is clear that the chances of going bankrupt for the “systemically important dozen” banks, the list of participants of which is published on the Central Bank’s website, are about zero, but fans of bank interest sometimes bring money to banks from the second or third tier.

Secondly, OFZs are liquid. You can usually sell them at a good price in a couple of hours, and receive them in your hands the very next business day. A bank deposit is almost always withdrawn with a loss of interest, and if you need, say, 50 thousand rubles out of 2 million in the bank, you will lose interest on the entire amount.

Thirdly, OFZ coupons are usually paid once every six months, which allows you to receive compound interest, thereby slightly increasing your profitability.

Theoretically, of course, you can create some kind of cumbersome homemade system of bank deposits - by opening several deposits in different banks, and tracking the end of each deposit using a calendar - but in the end you will get about the same thing, and you will have disproportionately more fuss.

2. About popular OFZs, the so-called OFZ-n. A completely reasonable option for those who want to lazily bury their money for several years and not think about anything. Personally, I don’t even think about them; I’m scared off by the 1% commission that banks take from the sale of such bonds, and which automatically turns them into some kind of permanent bank deposit.

I’ll say something politically incorrect now. This prohibitive 1% fee is a tax on stupidity. The tax is paid by people with dull brains who are not able to spend an hour or two to understand “adult” bonds.

3. Regarding the choice between OFZ and corporate bonds. In my opinion, the extra half a percent or a percent of yield is not worth the risk that we get by buying bonds of a “reliable” company like Yukos or Enron. Experts advise that if you really take risks, do so for the sake of normal profit - by investing, for example, 90% of your capital in OFZs, and the remaining 10% in several crazy things that can give thousands of percent per annum in a successful scenario.

Risking “half a penny” for the sake of three kopecks is an obviously dubious undertaking. If a large and reliable company files for bankruptcy, the fact that it was once large and reliable will not help you.

Of course, if you immerse yourself in trading, you can scatter your eggs into different baskets, and the risk of losing will then be minimal, but in this case another problem will arise - liquidity. It may take you a couple of weeks just to sell a plant's bonds, or even several months to sell them at a good price.

4. Now about choosing the company with which you will buy bonds. There is a very important consideration here - if the Ministry of Finance itself Russian Federation If you can’t go broke, then anything can happen to a broker, even a large one.

If you are well versed in this kitchen, you can hedge your bets by amending your agreement with the broker and prohibiting him, for example, from using your bonds as collateral when playing on the stock exchange. On the other hand, if you are an experienced stock market predator, my advice is probably of no use to you.

For ordinary investors, it would therefore be wise to open a brokerage account with a large bank. The conditions and commissions are almost the same everywhere, close to zero. Service in large banks, however, is usually slow, and the qualifications of the staff leave much to be desired, however, these minor inconveniences need to be endured only once, when opening a brokerage account. Then all work will be done via the Internet.

5. By the way, some people think that bonds are easier to buy and sell over the phone. This is a mistake, even in the case of OFZ. You can easily lose a percentage or two by simply giving the command “buy” or “sell” at the wrong moment.

Theoretically, you can, of course, give a more detailed command - put up for sale such and such a package of bonds at such and such a price, but in order to give such a command, in any case you will have to delve into what is happening: you will not be able to evade the need to study.

6. Now we come to the most unpleasant part. When you open a brokerage account at a bank, you will be given a password for the QUIK program or its web version, WebQUIK. The program is, without exaggeration, terrible. If I were responsible for purchasing software from some bank, I would kill QUIK for two reasons: it has a completely indigestible interface, and it has bad, completely buggy code. Or rather, I would try to kill QUIK. I would hardly be able to do this: unfortunately, QUIK is still in fact almost a monopolist, other programs for working with the Moscow Exchange are either completely primitive, or only work for certain brokers.

Actually, the entire history of the development and use of QUIK is a verdict on our Western-oriented exchange community. The fact that still, in 2018, brokers and traders use this tangle of bug-infested crutches says a lot about the real level of their technical literacy and creativity.

To be fair, I note that there are a lot of problems with interfaces, and even monsters like Samsung and Microsoft release frankly inconvenient applications. They do this not to deliberately harm users, as Apple does, but simply due to the general underdevelopment of our computer industry. Managers are slowly beginning to understand that they cannot do without interface designers, but they do not yet have enough experience either to give interface designers sufficient authority or to pay them normal salaries.

However, do not take my cry from the heart to heart. Although QUIK offends my aesthetic feelings, from a practical point of view, you can master its slimy levers quite quickly, in half an hour to an hour.

Actually, to work with OFZs you need a very simple thing: find the right security, look at the history over the past weeks and estimate at what price you can actually buy or sell it. Next you need to set a price that suits you and wait a day. Since OFZ liquidity is high, someone will respond to a normal offer within a day.

7. Finally, about how to choose the right OFZs. They have a bunch of tricky varieties, which you can read about in other places if you wish, but now I’ll tell you about one simple, but at the same time very important thing.

The main advantage of OFZs is the ability to quickly sell them at the moment when you need money. Since the price of OFZ depends on the yield, and the yield depends on the current situation in the markets, for a novice investor it makes sense to choose from long list OFZs are those securities whose price will not jump much. This is easy to do - you need to select papers whose validity expires in six months to a year. Here, for example, is one of the simple services:

We select the public sector of the market, the status of the issue “in circulation” and the maturity date before September 30, 2019. We don’t pay attention to the COBRAs, which they won’t let us buy anyway, and we get a list of the five most convenient papers right now.

Perhaps this is an introduction to Magic world The OFZ can be considered completed. For pedants, I also suggest that you read additionally about ECD - if this concept remains misunderstood, you will be annoyed by the fact that the real amount of the transaction is slightly different from the one that you calculated in Excel.

Bonds are the closest alternative to bank deposits in the stock market. These are securities (debt obligations of companies or the state) that work on approximately the same principle as a bank deposit. You buy a bond for 100 rubles, and after a year (or any other agreed period) you are promised to return these 100 rubles, plus a fixed percentage of income, which can be paid once a quarter, half a year or year. When purchasing a bond with a face value of 100 rubles. for 100 rub. with an interest rate of 10% per annum for a period of 1 year, in a year you will receive 110 rubles.

Bonds are traded on the stock market. They can be purchased either independently by opening a fund, or through a management company by purchasing a share in a mutual fund.

Bonds are issued for a specific period. It can be 1, 2, 3 years or more. If you decide to sell the bonds ahead of schedule, for example, in six months, then if the market situation is favorable, you can return their full value and receive interest for six months in full, that is, 100+5 rubles.

Bonds are traded on the stock market and their value may decline. It depends on the international situation, the policy of the Central Bank, the situation in a particular company or industry. Market participants buy and sell securities every day. For this reason, if you decide to sell what you bought for 100 rubles. bond six months after purchase, against the backdrop of negative news, you can make a mistake. You, of course, will receive all the interest on it for 6 months, that is, 5 rubles, but at the same time, the cost of the security itself may fall to 95 rubles. This is the amount it can be sold for. In the end, at best, you will remain with your own.

But if the situation changes in your favor and, for example, the United States lifts sanctions on Russia, the value of the bonds, on the contrary, will increase, and you will be able to sell it, for example, for 105 rubles, and again receive your interest in the amount of 5 rubles. However, we repeat, you can be guaranteed to return your 100 rubles plus 10% per annum only when the previously agreed release date has passed.

Unlike a bank deposit, where the state guarantees the return of 1.4 million rubles. in the event of a bank closure, the return of funds on the bond is guaranteed only by the one who issued the bond - the state in the case of government bonds or the company. For this reason, when choosing a suitable bond, you need to focus not only on its term and profitability, but also on the reliability of the company that issued it.

What types of bonds are there?

Government bonds

This is one of the most reliable ways to invest money. This option is interesting, first of all, for those who like to keep funds in Sberbank, where the rate on a deposit for a period of one or three years is 5-6% per annum, and on a deposit with the possibility of replenishment and partial withdrawal without loss of interest is 1.5-2.3%. At the same time, the yield on OFZ (federal loan bonds) is about 8%, the interest on 2-year OFZ is about 8.12% per annum. The state acts as a guarantor of money return, so you can safely invest more than 1.4 million rubles in OFZs.

If you want to get a higher yield, you can purchase municipal or regional bonds issued by Big City or region. The coupon income on such bonds is higher than on OFZs, and it is also not subject to income tax. But here the risks are higher, because a separate region could theoretically declare itself bankrupt, so it is better to choose the largest metropolitan areas and rich regions, such as Moscow, St. Petersburg, Yekaterinburg, etc. A nice bonus is that income from government bonds is not subject to taxes.

Profitability: up to 7.5-8.5% per annum

Entry threshold: 1,000 rubles (that’s how much one bond costs).

Corporate bonds

If the yield on OFZ seems too modest, then you can invest in corporate bonds (company securities). In conditions of economic instability, it is better to choose securities of the most famous and large companies, such as Gazprom, Rosneft, Sberbank, VTB, Severstal, etc.

But there is one “but”. From the income received, you will have to deduct not only the broker's commission, but also the 13% personal income tax, which is levied on interest on bonds.

There is one life hack. For bonds issued no earlier than 2017, it will be possible not to pay personal income tax, but only on the coupon that will be credited to the investor’s account from January 1, 2018. If you buy a bond on these conditions, then the yield on it will be almost equal to the coupon rate. For example, the other day Gazprombank placed three-year bonds at a rate of 8.65% per annum. That is, having invested 100 thousand in a bond with such a rate, you will receive an income in the amount of 8400-8500 rubles in a year, minus the broker's commission. or about 8.4-8.5% per annum.

Profitability: 8.4-8.5% per annum

Entry threshold: 1,000 rubles

People's Bonds

In the spring, the Ministry of Finance launched a special instrument - simplified so-called people's federal loan bonds or OFZ-n. The rate on them is even higher than on ordinary OFZs and amounts to 8.5% per annum. Such securities are usually placed for three years. Coupon income on them is also not taxed. However, an additional commission will have to be paid to banks that act as sales agents. Moreover, this commission is greater, the smaller the amount invested. When purchasing securities worth less than 50 thousand rubles, the commission will be 1.5%. If 50-300 thousand rubles - 1%, more than 300 thousand rubles - 0.5%. In addition, banks may charge a commission for early presentation of a bond for redemption, and with early repayment, you can lose part of the accumulated coupon income. However, if you hold the paper until the end of the term and invested 100 thousand rubles in these bonds, you will ultimately receive an income of 8.4% per annum minus the bank commission or 8,400 rubles.

Yield: 8.4% per annum

Entry threshold: RUB 30,000.

How to buy?

People's bonds can only be purchased at the offices of Sberbank and VTB24. You can invest in other bonds in 3 ways.

1. Open a brokerage account

You can purchase bonds by opening an account with a brokerage company. To do this, you must first choose a broker. Full list can be viewed on the Moscow Exchange website.

To conclude a contract, you will need a passport. The broker will open a brokerage account and help you install a trading program on your computer, and also explain how to buy a particular security.

The broker earns from client commissions from trading operations. In order not to overpay, you must ask to select a tariff for your specific needs. State what you intend to do minimal amount transactions, that is, buy and sell the paper a year or two later. The bond can be purchased through your personal account after you have installed the trading application on your computer, following the instructions of the broker. When you decide to withdraw funds, inform the broker about this desire. The money will be transferred from the brokerage account to the bank account, and from there it can be withdrawn at the cash register or through an ATM.

The commission for the purchase/sale of bonds ranges from 0.025% of the transaction amount. You also need to pay 100-177 rubles. per year for storing securities in the depository. Additional a small amount you will have to pay for withdrawing funds (approximately 10-50 rubles). The amount of commissions depends on the broker and transaction amounts.

2. Open IIS

An individual investment account (IIA) is a type of brokerage account, but it was intended by the authorities so that ordinary citizens (like you and me) would start buying stocks and bonds. For this purpose, the state has come up with benefits for those who open an IIS. The rules are as follows: if you deposited up to 400 thousand rubles into your account. and do not withdraw funds within 3 years, then you will be returned a tax deduction in the amount of 13% of the amount in the account. The deduction can be obtained already in the first year by submitting a declaration to the tax office.

Such an account can also be opened through a broker. There is a limit on the number of IIS – one account per person. You can deposit up to 1 million rubles on an IIS, but you will only receive a deduction for 400 thousand rubles. True, in a year you can report another 400 thousand and receive another deduction. However, the second amount must also be kept in the account for 3 years from the date of deposit, etc. If within three years you still withdraw funds, the deduction will have to be returned to the state.

“In addition to coupon income on OFZ, which is not subject to personal income tax, an investor can receive a tax deduction in the amount of 13% of the amount deposited into the IIS. Thus, only in the first year of owning OFZ on an IIS, you can get approximately 21% per annum. Of course, in a year the profitability will decrease, because it will not be possible to receive a tax deduction every year on the previously deposited amount. And yet, the profitability of investing in OFZs through an IIS exceeds the best bank offers for deposits,” explains Alexander Dubrov, head of the online trading department at Otkritie Broker.

You can put not only government bonds on an IIS, but also corporate securities. However, on the one hand, you can get a tax deduction for them, on the other hand, you will have to pay personal income tax on coupon income.

3. Buy mutual funds

If you don’t want to understand trading programs or search for the right security, you can invest in bonds through a management company (MC). To do this, it is enough to buy a share in a mutual fund (mutual investment fund). The mutual fund is a large portfolio with bonds of companies from different industries. All headache will be taken over by the manager.

The managers themselves claim that investing in bonds through them is not only more convenient, but also more profitable than investing on your own, because a professional is looking after the funds.

“Last year was very successful for the bond market, and the yield of bond mutual funds was 13-14%,” says Alfa Capital analyst Andrey Shenk.

However, no manager can promise a guaranteed return, so you can earn more or less on a mutual fund than on independently purchased bonds.

From the amount of income you need to subtract commissions, which in the case of management companies are much higher than in the case of brokers. A management commission is added (1-2% of the fund’s assets), discounts/surcharges that are paid by the investor at the time of purchase/redemption of fund shares. In total, about 1.5-2% will have to be subtracted from the profit received for the management and redemption of the share. However, the share can also be put into an IIS and receive a tax deduction in the amount of the same 13% per annum.

conclusions

Simple arithmetic shows that investing in bonds is more profitable than deposits. By studying this tool, you can get a yield of more than 12% per annum. To do this, you will have to open a brokerage account, research the market and pay commissions for brokerage services, and sometimes income taxes.

5 (100%) 2 votes

OFZs are the most popular and liquid securities on the market. Russian market bonds. They are characterized as the most reliable and stable. Foreign investors show the strongest interest in them. In this article we will talk in detail about the OFZ market: what types there are, what are the features of this type of bonds, how to purchase them for individuals.

1. OFZ - what is it in simple words

OFZ(federal loan bonds) are debt securities issued by the Ministry of Finance of the Russian Federation to cover budgetary expenses (they are also called “government bonds” or government bonds). Issued since 1995 in rubles (less often in dollars)

In fact, OFZs are ordinary bonds issued by the Ministry of Finance of the Russian Federation. They are considered the most reliable securities in Russia, since they are backed by the state. That is, if the state refuses to pay the face value or coupon, then default automatically occurs.

Each federal loan bond has its own unique state registration code. The face value of each is 1000 rubles. New releases are released periodically.

For the state, OFZs are an excellent solution to cover the budget deficit. Wherein this method lending by raising money from the population is the cheapest. For citizens, this method is also beneficial because the rate of return is higher than that of bank deposits, and the reliability is higher.

The rate on OFZ bonds directly depends on the refinancing rate of the Central Bank of the Russian Federation. If the key rate rises, then new issues have a higher yield. Typically, the OFZ rate is slightly lower than the refinancing rate.

If we compare the OFZ interest rate with bank deposits, they have almost the same yield (± 2%). At the same time, at different periods of time, the profitability of some is replaced by others.

OFZs are a direct reflection of the current situation in the country's economy and the future expectations of investors. Federal bonds reflect the yield on the “risk-free curve” (the return that can be earned without risking anything).

For example, if the price of a bond on the stock exchange rises, this reflects investors’ expectation that the Central Bank’s refinancing rate will decrease. If the price, on the contrary, falls, then this is a sign of an unfavorable situation in the economy, impending increased inflation, a depreciation of the national currency or a recession.

2. Types of OFZ bonds

The Ministry of Finance of the Russian Federation issues the following types of OFZ

1. OFZ-PD (fixed coupon rate). A constant rate for the entire life of the bond. Investors can accurately predict their returns over long periods of time. One of the most popular types of OFZ.
2. OFZ-PK (variable coupon rate). Every six months, the rate on this type of bond changes in accordance with the RUONIA rate (the average yield on bonds over the last six months). In this regard, it is impossible to accurately calculate the amount of earnings for the future period, since this amount will directly depend on changes in RUONIA.
3. OFZ-IN (indexed denomination). Every month, the denomination of the bond is indexed in accordance with the price index in the Russian Federation.
4. OFZ-AN (debt amortization). The amount of debt is repaid periodically.
5. OFZ-FD (denomination can vary from 10 to 1000 rubles)
6. OFZ-N (federal loan bonds for the population). They appeared only in April 2017. You can purchase them at Sberbank and VTB. True, they are more like a deposit than a bond, since when sold before the maturity date, the accumulated coupon income (ACI) is lost.

According to the maturity date, OFZs can be divided into:

• Short-term (up to a year)
• Medium-term (from one year to 5 years)
• Long-term (over 5 years)

For example, US bonds (Treasuries) have different names depending on their maturity:

• Short-term Treasury bills (Bills)
• Intermediate Term Treasury Notes (Notes)
• Long-term Treasury bonds (Bonds)
• Treasury Inflation Protected Bonds (TIPS)

3. How and where to buy OFZ bonds for an individual

OFZs are traded on the MICEX exchange in the “bonds” section. In addition, large transactions can be carried out on the over-the-counter market directly between banks and investment funds. Such transactions are closed for individuals. You can only trade through the MICEX.

Both any resident of Russia and any foreign investors can buy OFZs.

Access to trading on the MICEX for individuals is possible only through brokerage companies. You can find dozens of brokers on the market. I recommend working with the best of them:

They have the best trading conditions. By the way, here you can open a convenient IIS account, which allows you to receive tax deductions from the replenishment amount.

Read more about bond trading in the following articles:

4. Which OFZs are better to buy?

Depending on your goals, different OFZ issues may be suitable. In this case, in any case, the money can be withdrawn at any time after receiving all the interest, even in the option with a long-term vision. Let's consider several options.

4.1. Money will be needed within two years

An investment period of up to 2 years in OFZ bonds is considered short-term. In this case, the easiest and safest way is to purchase OFZs with a maturity date of 2-3 years. The coupon rate will be average. At the same time, there are practically no risks of price fluctuations.

Even if OFZs for some reason fall in price, then on the redemption day you will still receive your NKD and face value.

4.2. Money will be needed in 2 - 4 years

This situation is more difficult to describe. The longer the period of time considered, the more difficult it is to make a forecast. In this case, it is logical to do a little risk diversification. For example, create one of the following bond portfolios:

• 40% - OFZ-PD with a maturity of 4 years
• 20% - OFZ-PD with a maturity of 10 years

• 60% - OFZ-PD with a maturity of 4 years
• 40% - OFZ-PK with a maturity of 4 years

In any case, such a portfolio of bonds will be both positive and negative. But in total we will get something average, and higher than investing in one of the types.

4.3. You will need money in 4 years or more

In this case, it is necessary to draw up a long-term investment portfolio of OFZs. It should also include several types of assets.

• 25% - OFZ-PD with a maturity of 4-6 years
• 25% - OFZ-PD with a maturity of 10-15 years
• 30% - OFZ-PK with a maturity of 5 years
• 20% - OFZ-IN (on the market little choice this type, so you have to take what you have)

5. Advantages and disadvantages of OFZ bonds

• Reliability. This is what investors love about OFZs most of all. On the Russian securities market there is not a single more reliable bond or share than OFZ.
• Liquidity. Compared to the stock market, the bond market is not the most liquid. But OFZs look much more liquid in this segment than many other issuers. OFZ bonds can always be sold with a minimum spread.
• Wide choice of repayment terms. There are many types of OFZs on the market with different rates and maturities. An investor always has plenty to choose from.
• No tax on coupon income. Profit from the coupon is not taxed.

• Small bets on coupons. Although the difference with other companies is not that big of a difference.
• Risks of default. This is unlikely, but in this case you can lose all your funds. This was the case in 1998.
• Falling bond prices. If the key rate of the Central Bank rises, the bonds will fall in price. Of course, this is not a big deal if you wait until the repayment date, because... In any case, they will be repaid at par.