Investing in Kazakhstan: What It Is, Where to Start, and Where to Invest

Investing is considered one of the most popular tools for generating passive income.
However, opinions about investing vary. Some believe it’s complex and requires expertise to make profitable deals. Others argue that it’s as easy as downloading an app and buying assets. Let's break down what investing is and how to start investing money in Kazakhstan.

What Are Investments in Simple Terms?

Investing means putting money into various tools (like stocks) with the goal of making a profit. This income can be used to build an emergency fund, save for large purchases (like real estate), or protect capital from inflation. Many investors pursue passive income to maintain their lifestyle without working.

An investor can be an individual, a legal entity, or even a government.

There are several types of investments, often categorized by the object of investment:

• Real investments:
  Involves physical assets like real estate, art, jewelry, or antiques. For example, an investor may buy an apartment and resell it at a higher price.

• Financial investments:
  Involves securities such as stocks, bonds, and mutual funds. Even a bank deposit counts. This is the most popular form of investing.

• Venture investments:
  Investing in startups and early-stage companies with the hope that the business will grow and become profitable.

Investments are also classified by risk level:

• Conservative (low risk)

• Moderate (medium risk)

• Aggressive (high risk, but potential returns up to 30% or more)

Features of Financial Investments

To invest on the stock exchange, you need a brokerage account, which facilitates all trading operations. Trades are carried out by a licensed broker on your behalf.

Investors build a portfolio, a collection of assets they own. Portfolios may be:

• Conservative (returns of 10–15%, risks under 5%)

• Aggressive (returns up to 30%, higher risks above 15%)

• Moderate (a mix of both types)

To reduce risks, portfolios are diversified — investments are spread across various sectors. If one sector drops, others may compensate for the loss.

Example strategies:

• Harry Browne's method: divide into 4 equal parts — long-term bonds, short-term bonds, stocks, and precious metals (25% each)

• Ray Dalio’s method: 40% in bonds, 30% in stocks

Financial Investment Tools

Popular tools for investing include:

Bonds
Issued by governments or companies, bonds are a type of debt security. Investors lend money to the issuer and receive it back with interest (coupon payments). Bonds are predictable and pay steady income, though their returns are lower than stocks.

Stocks
These represent ownership in a company. Their value grows if the company performs well — and falls if it doesn’t.
You can earn via:

• Dividends

• Selling at a higher price

Stocks offer high return potential, but they are riskier.

ETFs / Mutual Funds (PIFs)
Exchange-Traded Funds combine different instruments like stocks and bonds. These are cheaper than buying individual securities and help diversify risk.

A subtype — Index Funds — track specific indexes (e.g., Dow Jones). The contents of the fund update as companies move in and out of the index.

Where and How Should Beginners Invest? Consider PIFs

Beginners often face many myths — for example, that investing is only for the rich or for those with financial education. In fact, if you’re unsure how to begin, mutual funds (PIFs) offer a ready-made solution popular in Kazakhstan.

In simple terms, a PIF is a professionally managed investment package. Experts monitor the market and adjust the fund's contents accordingly. Investors simply buy units (called “shares”), and the broker handles everything else — buying, selling, rebalancing.

PIFs can invest in securities, real estate, precious metals, etc.
When choosing one, be sure to:

• Read the management rules

• Review performance across different time periods

• Consider management fees

Remember: all investments carry risk. Past returns do not guarantee future profit.

Benefits of PIFs

BCC Invest has developed mutual funds with strong long-term performance.
According to Forbes (as of September 2023 to September 2024):

• “Rational Balance” Fund: 28.57% annual return

• “CenterCredit Currency” Fund: 24.2% annual return

Key benefits:

• Low entry threshold — one unit can cost as little as 6 KZT

• No need for deep knowledge — professionals handle everything

• Full transparency and legal compliance

Benefits of Investing Through the bcc.kz App

• All operations are fully online

• Dedicated "Investments" section to monitor and analyze your portfolio

• Free account opening and maintenance

• No limits on deposits or withdrawals

• No custody fees, minimal transaction fees (from 0.03%)

• No income tax on profits from securities trading

• 24/7 support from technical specialists

Examples of BCC Invest funds:

• “Currency Fund” – stable dividends in USD

• “Rational Balance” – higher returns in KZT with moderate risk

• “BCC ELITE” – a short-term, high-liquidity fund

Fund performance speaks for itself:

• As of late 2024:

  • “Currency” fund unit price = 113.51 USD

  • “BCC Elite” unit price = 1,327.54 USD
    These values are significantly higher than in mid-2024.

How to Learn to Invest from Scratch: Beginner Tips

To start investing wisely:

1. 1. Only invest what you can afford to lose.
   Start with saved money you don’t plan to spend in the next 1–2 years. Build an emergency fund first.

2. 2. Educate yourself.
   If investing directly in stocks, take courses, read beginner-friendly investment books, and follow professional analysts.

3. 3. Avoid unfamiliar tools.
   If you’re unsure about a financial product, use a PIF or work with a broker.

4. 4. Diversify your portfolio.
   Don’t put all your eggs in one basket. Spread investments across sectors and asset types.

5. 5. Be cautious with high-return promises.
   Impulsive decisions can lead to losses.

Today, investing is accessible even for those with no prior experience. You can invest in stocks, bonds, or other tools.
But for beginners, mutual funds (PIFs) offer a safer and simpler entry point — with professional management, built-in diversification, and ease of use. Learn more about PIFs on the BCC Invest website.

This article has been translated from its original language using neural network-based translation technology.