The investor named assets to switch from deposits with a reduction in the key interest rate

Reducing the Central Bank's key rate requires depositors to plan ahead and reallocate funds into alternative instruments in order to maintain profitability. Dmitry Dombrovsky, the creator of high-yield strategies and founder of O3 Finance, who is listed in the register of investment advisers of the Bank of Russia, told Izvestia on February 7.

"A common mistake is that investors react to a rate cut after the fact. Deposit yields are falling, and the search for alternatives is beginning, but entry into other assets is already taking place at higher prices. Reinvestment should not be abrupt, but a gradual process," the expert explained.

Dombrowski called fixed coupon bonds the first and most logical instrument for the transition. A high-quality bond portfolio can record yields of up to 18% per annum for up to two years, which is higher than on deposit. He advises paying special attention to long-term federal loan bonds, the price of which will rise with a decrease in the key interest rate. Their share in the portfolio in the monetary policy easing cycle can reach 30%.

Taming of the Shrew: The Central Bank presented a concept for regulating the cryptocurrency market

The regulator allowed the purchase and sale of crypto assets

The expert considers floating-rate bonds to be the second option, which allow you to earn 1-2% higher than the key rate. For some of the capital, this is a logical continuation of the money market, but with higher efficiency, Dombrowski added.

He called real estate another promising asset, but not in the form of direct purchase of apartments, but through liquid investment solutions.

"The current rental yield on large facilities, mainly logistics complexes, varies from 12 to 15% per annum. The rental rate is usually indexed, which means that with a decrease in the key rate, the dividend yield may even increase," the specialist explained.

For long-term portfolios, some of the funds can be invested in stocks, many of which, according to the expert, remain undervalued. Dombrowski formulated three key principles: the use of different asset classes to reduce risk, diversification within each class, and early action. In the end, a reduction in the key rate is not a threat, but a change in conditions. And the winners in this situation are those who build a structure in advance that is resistant to changing the cycle.

On January 9, investor Evgeny Khodchenkov spoke about the main financial mistakes of Russians. According to him, many close the necessary tasks, but do not build a spending plan for the future. Because of this, people start making emotional purchases and making questionable investments.

All important news is on the Izvestia channel in the MAX messenger.