The paper addresses a new tax deduction (videlicet, investment tax deduction), that is effective from 2015. The objective is to study the implementation details of the deduction in the Russian Federation and reveal development prospects. Investment tax deductions are classified into investment tax deductions as tax allowance for long-term holding of securities and investment tax deductions linked to opening individual investment accounts (types A and B). The authors present three schemes of investment tax deductions implementation. Besides, types of investors are identified and financial instruments for each type of investment tax deduction are recommended. It is determined that using tax allowance for long-term holding of securities and individual investment account (type A) implies conservative investment, whereas using individual investment account (type B) is associated with speculative investors. Foreign practice in implementing analogous deductions is summarized. The authors identify bonds as a dominant instrument in the framework of investing in individual investment accounts and present reasons for such considerations. Statistical data regarding opening individual investment accounts is presented from year 2015 and for the period January - May of 2016. The authors conclude that investment companies dominate in this market segment and make optimistic forecasts regarding development of this financial instrument. However, controversial issues related to investment tax deduction legislation are revealed. Lack of information on individual investment accounts, poor awareness of Russian citizens as well as a need for financial advisors are also named as a hindrance to the development of individual investment accounts system.