With small steps to big incomes

“Never depend on a single income. Make an investment to create a second source. ”

Warren Buffett

About 158 million people in the US, about 61% of the adult population, invest in stocks and according to the reports of the Armenia Securities Exchange, during 2023 transactions for more than AMD 90 billion were carried out on the stock exchange only with government bonds and for AMD 45 billion with corporate bonds.

Have you ever thought about investing? Stocks, bonds, and exchange-traded funds (ETFs) are some of the most popular investment assets around the world. Let's understand what they are and how they differ from each other, and which of them is the most suitable investment asset for you.

Bonds: A bond is a low-risk security. By acquiring a bond, you get the right to receive the nominal value of the bond, as well as interest, from the person who issued the bond within the specified period. We distinguish two main types:

• Zero Coupon Bond - you acquire at a price lower than the nominal value (at a discount), it is redeemed at the nominal value. For example, if you buy a US Treasury Zero Coupon Bond (UST-Bill) with a par value of $100,000, at the time of acquisition, you will pay a smaller amount, let's say $99,000, and you will receive $100,000 on the bond maturity date and your income will be the difference of $100,000–$99,000=$1000.
• InInterest-bearingonds- coupon payments are made on a set schedule against the calculated nominal value. For example, if you buy a bond with a nominal value of 10 million AMD and a 10% coupon yield, which coupons are paid annually, during the term of the bond, you will receive a coupon of 1 million drams per year and nominal 10 million drams on the bond maturity date.

Stocks: By purchasing stocks, can you receive not only income from their price appreciation, but it also entitles you to a share of the company's profits if the company decides to pay dividends. Unlike bonds, investing in stocks is a bit more risky.  They do not have a clearly defined repayment and cash flow schedule like bonds.

ETF (exchange-traded funds): ETFs are lower-risk investment assets than stocks because they allow you to make basket investments. You buy a share of a fund that invests in many assets that match its strategy that is you can also diversify your portfolio for a small amount of money.

By making pre-considered and competent investments, you allow your money to work for you.

Now when you already have complete information about investments and their types, let's understand what kind of investor you are and what is your investment style. Will you be an active or passive investor?

There are a number of factors to be considered before starting to invest. First, all risks and their levels should be assessed. For example, starting to invest when you're young means a longer investment horizon. This is due to the extra time you have. In comparison, with short-term investments, you should be prepared to take on more risk for more income.

EvocaINVEST. It's time for new incomes

With the EvocaINVEST application, you can invest in several international financial markets.

EvocaINVEST is available in web and mobile app versions (App Store and Google Play).

• Become the Bank's Client
• Open a Brokerage Account
• Download the app
• Complete the account
• Make an investment
• Receive an income

To purchase bonds, shares, and ETFs, you need to open a brokerage account at Evocabank and make your transactions yourself with the EvocaINVEST application.  

For details:

• +374-10-20-55-55
• [email protected]