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Алексей Жидов

3 ways to excel as a lazy investor

Here's how to succeed in the stock market - even if you don't want to spend a lot of time investing.

Some people like to constantly monitor the stock market, tracking its daily or weekly ups and downs. But what if you end up in the opposite camp? What if you agree with the idea of investing, but are not particularly interested in events in the stock market and do not want to spend a lot of time building a portfolio?

Some of us are just lazy investors by nature, and there is nothing wrong with that. But if so, here are some tips to help you succeed without a lot of effort.


Buying ETF Index Funds

Buying individual stocks requires careful research. You will need to research various companies, see what sets them apart from the competition, find out how well they manage their cash flow and debt, and track their performance over time. If you don’t have the patience for that, take a look at index funds.

Index ETFs are passively managed funds that seek to match the market indices to which they are linked. When you invest in index funds, you get a whole bucket of stocks in one purchase. This results in a beautifully diversified portfolio without having to do a lot of work.

For example, the FXRL index fund will allow you to buy the entire Russian stock market at once into your portfolio for a small amount. it repeats the index of the Moscow Exchange (RTS). It includes shares of Gazprom, Lukoil, Sberbank, VTB, Surgutneftegaz, Novatek, Magnet, Rosneft and others.

The downside of index funds is that you don't outperform the market - rather, you just win when it does well and see your portfolio's value decline as volatility increases in the market. But having a portfolio that moves with the broader market is not a bad thing - especially since it still opens the door to long-term profit.


Use the averaging method to your advantage.

When using the averaging method, you agree to invest a certain amount of money at predetermined intervals. You can, for example, invest 5,000 rubles every Tuesday in a SP 500 index fund from Tinkoff Provider (TSPX) and see where it takes you.

The great thing about this strategy is that it eliminates guesswork from the equation, so if you don't know how to time the market (and experienced, active investors still fail), you don't need to - you just stick to the pre-planned graphics.


Invest for the long term

The stock market can be extremely volatile, which means that the value of your portfolio can fluctuate wildly from week to week or month to month. But that's not something you have to worry about if your goal is to get a quality investment and leave it alone for years to come. The buy and hold long-term investment strategy is effective not only for wealth growth, but also ideal for investors who do not want to spend time constantly re-evaluating their strategy.

If you are unable to track the dynamics of the market and collect a set of individual stocks, choose the easy way out. If you stick to these rules, chances are good that you will succeed in the end.