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- Interest rates: deposits turned out to be more profitable even than mutual funds of stocks
Interest rates: deposits turned out to be more profitable even than mutual funds of stocks
Over the past three years, investors in equity funds have not even been able to compensate for inflation, while deposits have generated double-digit returns. On average, such mutual funds provided 6.8% per annum against 15.3% for bank deposits. Less risky bond and mixed funds also lost out to deposits, contributing 11-12%. At the same time, the average inflation rate was 7.8% per year. Why the risk did not pay off and where it is now more profitable to invest your savings — in the material of Izvestia.
Why investments in mutual funds did not pay off
Over the past three years, equity mutual funds have brought in an average of 6.8% per annum, bond funds — 12.4%, and mixed funds — 10.6%. All three categories lost out to bank deposits, which had a yield of 15.3%, according to Expert RA data obtained from May 2023 to May 2026. During this time, inflation averaged 7.8% per year, so investors in equity funds lost money in real terms altogether — the price increase simply exceeded the income received.
Mutual funds allow you to invest in a set of assets at once — for example, stocks and bonds of different companies. The management company forms a portfolio in accordance with the fund's strategy, and the investor buys a share of such a portfolio, which is called a share. Unlike a deposit, the return on a mutual fund is unknown in advance and may even be negative. In this case, the person actually loses part of the invested money.
The main reason for the lag in equity funds is the prolonged period of high key interest rates. When banks offer double-digit returns on deposits, it is more difficult for investors to justify investments in assets, the value of which can fluctuate significantly, explained Alexander Dzhioev, head of the macroeconomics and stock market group at Alfa Capital Management Company. At the same time, expensive loans increase business costs, deter investment, and limit companies' ability to increase profits and pay dividends. And the profitability of mutual funds may also depend on them.
The situation was further complicated by the weak dividend policy of individual issuers and the lack of independent reasons for the growth of quotations, said Alexander Lavrov, Commercial Director of Vostok-Zapad Management Company. As a result, even individual companies capable of developing at a high rate could not always support the entire market.
Geopolitical uncertainty and a strong ruble also played a role, which reduces the income of oil and gas companies selling their products in foreign currency, added Denis Astafyev, founder of the SharesPro fintech platform. At the same time, the results of funds depend not only on market dynamics, but also on management costs: commissions of 1-2% per annum can significantly reduce the final earnings of a shareholder, especially with weak asset growth.
The press service of the Bank of Russia told Izvestia that since June 2026, the regulator has been publishing a "Mutual Fund Data Showcase" on its website, which contains basic information about all funds for unqualified investors. With its help, in particular, you can learn about the profitability of funds and the amount of remuneration of management companies. This information can be used to make informed investment decisions. The Central Bank expects that the publication of these data in the future will promote competition between management companies and reduce fees for fund management.
Under these conditions, over the past three years, deposits have become one of the most profitable instruments. For more than six months, the regulator kept the key rate at 21%, and the banks offered even more favorable terms.
However, this period does not allow us to conclude that stocks are in principle unprofitable, says Maxim Shein, director of work with wealthy clients at BCS World of Investments. The market goes through different phases, and a high key rate can temporarily make conservative instruments more attractive. Stock price fluctuations of tens of percent are normal, so they may perform better over a long horizon.
The future fate of the funds has also not been determined, said Freedom Global analyst Vladimir Chernov. Lowering the key interest rate by itself does not guarantee a recovery in the stock market: for a steady increase in quotations, it is necessary to improve the financial results of companies, and geopolitical uncertainty may continue to deter investors.
Which tools turned out to be more profitable than deposits
In addition to the three main categories of mutual funds — equity funds, bonds and mixed funds — there are also money market mutual funds and precious metals funds. Over the past three years, they have shown higher returns than bank deposits: the first ones brought in an average of 16.5% per annum, and gold has almost doubled in price, according to data from the Expert RA agency.
Money market mutual funds place funds primarily in reverse REPO transactions: the fund transfers money to another party secured by securities, and the latter undertakes to return the funds and pay the income later. During the period of high key interest rates, such operations generated quite significant income. In addition, they do not depend on the price of the assets themselves, which is why such funds were able to overtake deposits.
Gold turned out to be even more profitable, although it is usually considered primarily as a protective asset, rather than as a tool for regular earnings. In three years, the RUGOLD index (the Moscow Exchange index, which reflects changes in the market value of refined gold in Russia) has roughly doubled: an invested million rubles would have turned into about two million.
However, this result is primarily due to a sharp increase in the value of the precious metal in late 2025 and early 2026. In global markets, it has been updating historical highs amid geopolitical tensions. Additional support for prices was provided by purchases by central banks and investors, as well as the weakening of the dollar. In January 2026, gold prices peaked at over $5.6 thousand per troy ounce, but subsequently began to decline, according to a review by the World Gold Council. Therefore, record profitability does not mean that the precious metal will continue to grow at the same pace.
How to protect money from inflation
Before investing, it should be clearly understood for how long and for what purposes the funds are invested, experts noted. For money that may be needed in the next year or two, a deposit remains the most predictable option: its terms are known in advance, and funds within the established limit of 1.4 million rubles are protected by the insurance system, said financial adviser and founder of Rodin.Capital Alexey Rodin. In the short term, it is difficult for mutual funds to compete with deposits with a comparable level of risk.
Money market funds can be considered as an alternative to deposits for novice investors, Dmitry Tselishchev, Managing director of the Rikom-Trust investment company, believes. However, when choosing a mutual fund, it is important to take into account not only past returns, but also the composition of the portfolio, diversification, commissions and willingness to fluctuate in value, warned Alexander Dzhioev.
Additionally, it is worth evaluating the management company's ability to work with capital: ratings of reliability and quality of services help to get an idea of it, and the investment rating of a particular mutual fund also takes into account the profitability of the fund and the manager's contribution to the result, explained Tatiana Yakovets, a leading analyst on investment ratings of shares of the Expert RA agency.
With a horizon of one to three years, bonds issued by reliable companies with a credit rating above A are also suitable, Dmitry Tselishchev added. However, before buying, it is necessary to check the rating of a particular issue and its maturity date.
Those who have already invested in mutual funds and are faced with a drop in the value of shares should not make decisions just because of a loss, Denis Astafyev believes. First, you need to assess whether the financial goals have changed, when the money will be needed, and how well the fund matches its strategy. If funds are needed in the near future, it is reasonable to withdraw some of them. However, with long-term investments, it is more important to evaluate the quality of management and the dynamics of the fund relative to its benchmark, and not just the previous profitability.
If the profitability of a particular mutual fund consistently lags behind the corresponding index (for example, the precious metals fund from RUGOLD or the equity fund from MCFTR, which includes the full profitability of Russian stocks, including dividends), then the investor should understand the reasons and compare the mutual fund with alternatives, said Igor Sheller, product manager at Finam Management Management Company. At the same time, the fall in the value of shares does not mean that the manager is performing worse than the market: it is important to evaluate the fund's performance relative to its benchmark, and not just the purchase price.
It is important to remember that deposits and mutual funds are different ways of investing that solve different problems. The former are suitable for saving funds over a short horizon and give predictable results, the latter allow you to invest in different asset classes and can provide a higher potential for profitability over a long period, concluded Alexey Rodin. Therefore, the final choice of a product should always depend on the capabilities and goals of a person at a particular moment.
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