Investments - what it is: classification and ways to invest money

Hello, friends!

Hello, friends!

Usually about investments we hear in economic news that are related to the development of the enterprise, industry or country. Most people believe that this concept does not apply to their life. But the realities are such that investment is the vital necessity for everyone who thinks about their future and the future of their family. We'll figure it out what investments are simple words, for which they are needed, and where to start a newcomer.

Definition and purpose of investment

For 20 years I have been taught at the University of Disciplines related to investments and investment activities. But only a couple of years ago aware that the material I give would not help young people to change your thinking to the need from the first independent earnings to start creating personal capital.

Full information on topical strategies that have already brought millions of passive income to investors

In class we deal with how important it is to invest enterprises that want to survive in the conditions of the market, we study the investment mechanism. But when I speak with students about personal finances and investment, I see complete misunderstanding of the process and skepticism. Why is it necessary? Need millions. We still think about pensions. We want to live one day. All the same, the state will delete everything and so on and the like.

Defendant thoughts for young people. She has every chance of finding financial independence, because on the side of young one of the main success factors - time.

In short, I began to correct the situation as much as I allow me to make the standards of the Ministry of Education. But within our blog, I am not limited to the framework, so I am pleased to share my knowledge and experience in investment activities. And today the most foundations.

Investments in general understanding are investments in any facilities in order to obtain effect. The effect does not have to be commercial (profit extraction). If we are talking about government investments, then we can talk about social, environmental and other effects. Take, for example, a project for the construction of a kindergarten or reconstruction of sewage treatment plants.

But the article is not about investment activities of enterprises, but about ours with you.

For a private investor, investments are an investment in assets in order to create, preserve and multiply personal capital.

I think the answer to the question why it is necessary to create capital, everyone has. This is a purchase of expensive goods (car, apartment, house), traveling or ordinary holidays with family at sea, children's education, and finally a decent pension. The peak of everything is financial independence, when you do not depend on your employer and the wages received when you have the opportunity to do what I dreamed of all my life.

Call me at least one normal person who would be against all this. Then why investors in Russia just over 2%, and even less active? Because we love to invent excuses of inaction. The most popular: "There is no money to invest", "do not want to limit yourself, life is too short," "investments came up to take the latter."

Dangerous delusion. Before you say so, it is necessary to learn everything about the subject of the dispute and try in practice. I did both. None of the listed arguments have confirmation. The case is yours.

Classification of investments for a private investor

In any textbook on economics you will find an extensive classification of investments. But we will analyze only the one part of it, which belongs to the private investor. And the first sign - investment objects. Depending on it, investments are:

  • Real - investments in real assets, such as the purchase of real estate, land, equipment;
  • Financial - investments in securities (shares, bonds), currency, derivative financial instruments (futures, options).

In terms of investment:

  • Short-term or speculative is a game on the difference in the price of the asset, several purchase and sale transactions can be carried out in a minute, it is difficult to attribute to investments;
  • medium-term - for a term of 1 to 5 years, the goal may be buying a car, child education, vacation, etc.;
  • Long-term - investments for a period of 5 years, as a rule, the main goal is to create passive income from capital.

The strategy depends on the investment period: active or passive.

What are the species depending on the nature of the participation of the investor:

  • Direct when the investor invests invested directly, without the participation of an intermediary (for example, in business development, his or alien);
  • indirect when investing through intermediaries (brokers).

By risk level:

  • aggressive
  • moderate
  • conservative.

The choice of option depends on the individual attitude to the risk of the investor.

Investment objects

We are looking for an answer to the question where to invest money. I already wrote about it, briefly focus on options, already available to private investors in Russia.

Option 1. Bank deposits.

Traditional tool familiar to each Russian and for many still remaining the only way to invest. The decline in the key rate of the Central Bank in 2019 led to a significant decrease in deposit yields (4 - 5% per annum). Such a bet is difficult to call an acceptable for an investor who wants to create and multiply capital.

Option 2. Shares and bonds.

For beginners, these are risky tools, except for offs and municipal bonds. But also the yield on them is higher than on deposits. Buying shares and bonds of individual issuers only after theoretical training. If you do not want to risk and decide to dwell on the OFZ and municipal bonds, get ready for anything about 1 - 2% more profitable than on bank deposits.

Option 3. Indian funds.

At the initial stage, it is better to invest in index funds that follow the exchange index (BPIF or ETF). This will allow you to immediately execute the first rule of the competent investor - diversification. There are funds of shares, bonds and even gold. Invest in American, Chinese, German and other markets, in rubles, dollars or euros. The decrease in quotations by one shares included in the index is compensated for by the growth in others.

Option 4. Currency.

Not the best advice - buy cash currency and fold home. First, it is unsafe. Secondly, no one has canceled inflation. The same bad advice - put on the currency account in the bank. Rates there are indecent low. I will not send newbies for forex either. 99% that they will lose all their money there. As an option - to explore the topic of PAMM accounts and form a portfolio from several accounts with a conservative strategy and a long history.

Option 5. The property.

Suitable for people with big initial capital. And the one who hopes to buy in the mortgage, to rent, repay the loan at its expense and earn something, he can be very disappointed. Calculations, calculations and once again calculations. For those who do not have a sufficient amount to purchase real estate, an accessible option can be the acquisition of stocks of real estate funds trading at St. Petersburg Stock Exchange (Reit), or participating in the closed property of real estate.

Option 6. Precious metals.

Experts call such an option protective. There will be no big profitability. Only if the next global crisis is born, and all investors will rush to buy gold instead of collapsed securities. It is for such cases and invest in precious metals.

Option 7. Venture investment.

This is a highly profitable and at the same time highly adjoint option. The attachment into something new and promising can bring thousands of percent yields, and can turn capital in 0. Examples of successful venture projects: Facebook, Alibaba, Xiaomi.

It will be wrong if I do not say about one form of investment. Each of us is now an investor, because invested or continues to do it in his education, health, children, etc. The last object, by the way, causes me bewilderment. Some parents invest in children so that they then contain them. I believe that we are obliged to do everything possible so that you do not follow the children to help us in old age.

I led all these investment options in order to show that without studying the mechanism of operation of each instrument, it is not worth it for newcomers to high income and rapid enrichment. The fear of most people risks comes from misunderstanding, as investments work. Therefore, they invest their money in banks and apartments. And the understanding of anyone from birth is not given, even Warren Buffett.

Step-by-step instructions for a beginner investor

A few years ago, my husband and I were novice investors. Today we have two brokerage accounts and a formed investment portfolio, which creates capital for different purposes. The yield for 2019 amounted to 19.8%. For a passive investor who spends 1 hour a month for analyzing and replenishing accounts, a couple of hours at the end of the year to rebalancing is a good figure.

Only investors who get more, but stably over the past 10 years can criticize the results. I have something to learn what I will do. I count on a long investment life.

I will give a little step-by-step instruction based on my personal experience.

Step 1. Self-education.

From this I started. In my service book book, paid and free webinars, conferences with leading investors of the country, courses on portfolio investment from professionals. All this gave me a great start, did not allow to make mistakes of beginners and lose money.

Step 2. Evaluation of the financial situation of the family.

I started to lead a family budget: income and expenses, assets and liabilities, plan and fact, savings and overrun. I make up the table, I plan, optimize and identify sources for investment. I spend 1 minute at this every day and 10 - 15 minutes at the end of the month.

Step 3. Creating a airbag.

I can not allow the risks of all the money in the family, because investments are always a risk. The airbag must be created in mandatory. We made it in the amount of 4 monthly family spending. Hold backup money is best in the tools from which they can quickly withdraw. For example, a deposit with the ability to withdraw without percent loss, a debit card with a percentage on the residue, OFZ or money market funds on the mosserier.

Step 4. Determining investment purposes.

Without this, do not form an investment portfolio. Its composition and distribution of assets inside depend on the investment period. For example, one of our goals is the education of a child (the youngest daughter finishes school in 2024). The average is a medium-term, therefore the distribution of assets made conservative. Another event is scheduled for 2027 - the distribution of assets has become more risky, but not aggressive.

Step 5. Choosing investment tools.

At this stage, I recommend to determine your risk-profile. There are special tests from brokers and free access on the Internet from leading investment companies in the world. Further, depending on your attitude towards risk, goals and terms of investment, choose tools.

Step 6. We make the first attachments and begin our way to financial independence.

Risks of investment

We all say that investments are risk. With what kind of risk, an investor may face:

  • Country - risk inherent in a particular country and related political, economic, legal and other factors;
  • Currency - when inflation and change in currency exchange rate is one, then the other side reduces the yield of assets or leads to a decrease in capital;
  • Market - associated with fluctuation of stock quotes, bonds;
  • The risk of a separate company.

There are two extremes that need to be avoided:

  1. Do not analyze risks at all and invest all money in high-yield projects, hoping on "avoshu." The result is lost capital, disappointment in investments and the belief of other people is that all this divorce, lottery and casino.
  2. Do not risk at all, but, for example, keep money at home. The result is the same as in the first case. Only here it is already impossible to blame the government, the president, a neighbor or friend.

Conclusion: risks do not need to be afraid, they need to learn how to manage. One of the most efficient ways is diversification.

Conclusion

Investor in Russia can be any adult person. Now the government is working hard on to allow someone more (so-called qualified investors), and to protect someone from rampant deeds. The way out of this is only one - to increase its financial literacy, to invest and rather go to the status of a qualified investor.

I believe that a person is able to respond to his actions and bear responsibility for them. Extra barriers will lead to the fact that a novice investor will never learn to think, because he already decided for him. And because of this, the desired influx of private money in the economy will again be a stream, which will not affect anything.

Investments are an investment of cash to obtain income or conservation of capital. There are financial investments (purchase of securities) and real (investment in industry, construction and so on)

A source

Photo: Alexander Mils / Unsplash

The big encyclopedic dictionary in the 2002 editorial board defines the word "investment" as long-term capital investments in the economy industry within the country and abroad.

People who are engaged in investing are called investors. A private investor can be anyone - a mid-level manager, a financier, a doctor, a teacher, a student or a pensioner, no special education is required for this. For them, this is a way to get an additional income. Traders - the opposite of investors; They constantly conduct short-term transactions, this type of activity is for them the main source of income.

The fact that investments are aimed at receiving an investor profits, they are not guaranteed to get it. Different investment methods provide different guarantees of income generation, but in all cases there is a risk that an investor will receive a loss instead of arrived.

https://aflife.ru/investirovanie/chto-takoe-investirovanie-prostymi-slovami.

Ways of private investment

On the stock exchange there are many ways to invest money. Some do not require deep knowledge of the work of financial markets, only professionals are engaged in others.

The most common subjects for investment on the stock exchange can be attributed:

  1. Investment B. Shares .
  2. Investment B. bonds (state or corporate).
  3. Investment B. Precious metals (Gold, silver, platinum).
  4. Investments in stock exchange funds ETF. or PIFES. .
  5. Purchase Currencies .
  6. Investment B. Derivative financial instruments (futures, options, swaps, etc.)

Duration of investment

For convenience, private investments are divided into groups depending on the deadlines. Total three of them:

  1. Short-term (period up to year);
  2. Medium-term (from 1 year to 3 years);
  3. Long-term (from 3 years and longer).

Investment style

Nowadays, two main investment style has been formed. The first - Passive investment . For him, attachments are characterized for a long time. Such a style assumes that a person has invested money, for example, in the company's shares, and for several years keeps them without selling. As a rule, passive investments are made to large raw materials, technological, financial companies - they are lower than the risk of a sharp drop in quotations, often such companies pay dividends.

Second style - Aggressive investment . Here it is understood that the investor invests money into more risky tools. For example, in the shares of non-locomotives of the industry, but in the share of companies smaller - with fluctuations in the markets, such papers grow more or fall (that is, they have high volatility), but due to the same quality you can earn more. Such a type of investment requires a deep understanding of the market and readiness to lose invested funds.

Photo: Alexander Mils / Unsplash

Photo: SPENCER PLATT / GETTY IMAGES

How to invest private person

A private person cannot trade on the stock exchange alone. Brokers are engaged in this, and they act as intermediaries between the Exchange and the investor. Need to open Brokerage account , after which the account holder opens the ability to buy / sell securities  .

Also, brokers provide professional manager services. Together with experts, you choose an investment strategy, agree, under what conditions what shares to buy / sell, and then the situational solutions according to your portfolio takes the manager.

Do I need to pay taxes from investment

There are the three most common ways to make a profit. Get the difference between buying and selling securities, get a coupon pay Bonds or Dividends . All three types of income are taxed. Their state pays for the Investor Broker.

The legislation takes into account situations where the investor from one transaction received a profit, and on the other - a loss. For example, if you bought securities in the amount of ₽100 thousand, and sold in ₽140 thousand, your profit will be ok40 thousand. Then you also bought an ok 100 thousand, but sold in ₽90 thousand, then your The loss will be ₽ 10 thousand. In the end, you will need to pay tax over the amount of ₽ 30 thousand.

If you are a tax resident of Russia, then you will have to pay 13% from your profits; If you are a foreigner - 30%. Broker will keep tax for you and lists it to the state budget for the year. If you buy foreign stocks, the income is considered the difference between the amount of purchase and sale in rubles.

From January 1, 2021, the tax will need to pay from all bonds as government and corporate. No exceptions. The rate is 13% for residents and 30% for non-residents.

Photo: UForms.ru for RBC Quote

If you are an ordinary Russian private investor, then the broker will first pay the state from your dividends tax at 13% and then translates your money. When you receive dividends, for example, on American shares, 10% will go to the American budget, and 3% in Russian.

In addition to the usual brokerage account, the investor can open an individual investment account (IIS). He is the same brokerage account, but with the ability to get a tax deduction. The ability to open it only among citizens of the Russian Federation.

IIS appeared in Russia on January 1, 2015. It happens two types - A and B. In the case of the account, and you can return 13% of the amount that Ies has been made during the year. The amount from which these 13% will be calculated cannot exceed ₽400 thousand. Therefore, you can get the most from the state for this benefit of ₽52 thousand per year. An account of type b will free you from income tax. That is, the entire income that you could earn, selling securities to the IIS, will not be subject to income tax at 13%.

https://aflife.ru/investirovanie/chto-takoe-investirovanie-prostymi-slovami.

Yield and risks

Investments possess two key qualities that have a direct relationship. it yield и risk . The higher the risk with which the investment is associated is the higher the potential yield may be. Conversely - relatively reliable investments never allow to count on high earnings.

For example, a bank deposit, which, too, can well be considered an investment, or the purchase of government bonds is attachments with low risk. Bank deposits are insured, and in the case of state-owned guarantors, the state is acting as a guarantor. But also the profitability of such investments is lower than the potential profitability of shares, which can affect a variety of reasons from market to corporate.

To illustrate the communication of risks with profitability, another example can be given. Bonds with a 10-year repayment period bring greater income to the buyer than, for example, three-year bonds. The following principle is valid here: the higher the duration of the bond, the greater the risk assorted an investor (after all, even for 10 years, even with state-owned vocations can occur) and, accordingly, it is necessary to reward it for this risk.

Photo: SPENCER PLATT / GETTY IMAGES

Photo: Marten Bjork / Unsplash

Investment portfolio and its diversification

The totality of all investment in the investor is called the investment portfolio. The investment portfolio may consist of shares of one single company, but analysts and experienced investors recommend not to spend all the capital for one valuable paper. To reduce risks and increase the profitability of investment, the investment portfolio is diversified - that is, there are investments between different securities.

Even developed economies and large companies are inevitably faced with the recession periods and Stagnation . To protect against such situations, the investment portfolio includes not only shares, but also bonds, deposits, stock exchange funds. Professional investors add contracts to the portfolio for the supply of goods - futures.

The most risky, but at the same time the revenue part of the portfolio includes shares. Exchange funds - golden mean, associated with relatively low risk and high income. The protective part of the portfolio - bonds and deposits that stabilize the portfolio in case of severe Volatility This is the most reliable part of the portfolio.

In addition to diversification in assets, the portfolio is also important to distribute by sectors or sectors of the economy. The importance of such a principle is well traced with a careful study of any economic crisis. In such periods when one stocks fall, others grow. It creates a balance and allows you to reduce losses to a minimum.

Photo: Andrii Yalanskyii / Shutterstock

What are the investment

The concept of investment is not limited to private investment in securities or derivative financial instruments. In a broad sense, the term "investment" can be extended to any attachment by a private person or company whether money, material agents or intangible assets.

Basic investment classes:

  • Real investment . These include, for example, the purchase of a ready-made business; the acquisition of intangible assets, such as patents, copyrights, trademarks, etc.; Construction, reconstruction, overhaul.
  • Financial investments . These include the purchase of securities or derivative financial instruments.
  • Speculative investments . In this case, the main feature of the investment is the rate on income due to the change in the asset price. There is a principle "buy cheaper, sell more expensive." The subject of speculative investment can be shares, and besides them - currency, precious metals, bonds.
  • Venture investment . So called investments in young companies for a long time. Venture investments are associated with a high risk of fully losing investments, but they can also bring investors with super-profile. An example of a successful venture investment is the attachment of the Softbank Fund in the young Alibaba company in 2000. After the release of Alibaba on an IPO in 2014, the share of Softbank increased from $ 20 million to $ 74 billion. An example of a failure venture investment is the bankruptcy of the Theranos medical project, which has been attracted from venture investors at least $ 500 million before its collapse.
  • Portfolio investment . This investment is not in one type of asset (for example, a share of a particular company), and immediately in several, which are formed in the form of a portfolio of several securities.
  • Intellectual investment . So called investments in the intellectual product. Such may be the training of specialists, scientific developments, objects of intellectual property, the creative potential of a group of people.
Photo: Marten Bjork / Unsplash

Photo: Mayofi / unsplash

The opposite of investment is Divestration . So in the economy they call the reduction of the asset. Divorption can be called the sale of a part of the existing business - the company do this in the event that they want to focus on the main direction of their activities.

Divestrations may be committed, including by moral and ethical reasons. In recent years, environmental activists call for the deiversity of the assets associated with the oil industry.

Sometimes the resistance becomes the result of antitrust policy. One such cases occurred in 1984, when the US authorities obliged AT & T telecommunications corporation to share and sell one of the divisions.

Famous investors

Warren Buffette - American businessman, one of the most successful investors in history and one of the richest people in the world. Known under the nicknames "Providez", "Wizard from Omaha", "Oracle from Omaha". Invests through its own investment company BERKSHIRE HATHAWAY. At the end of January 2021, his condition was estimated at $ 86.4 billion.

Photo: Andrey Burmakin / Shutterstock

Peter Til - American Investor of German Origin. Paypal Payment System Coordinator, First Facebook External Investor, Coordinator and Founders Fund Manager.

Yuri Millner - Russian businessman and venture investor, founder of the DST Foundation. Through the DST Foundation, Milner invested in company such as Facebook, Spotify, Airbnb, Groupon, Xiaomi, Twitter, Zynga, Alibaba, WhatsApp. In 2020, Forbes estimated the state of Yuri Milner at $ 3.8 billion.

George Soros. - American trader and investor. Soros consolidated the reputation of the bold financial speculator. He gained fame after 1992, when he took an active part in the collapse of the British pound.

Karl Akan. - Known as one of the most successful activist investors. Akan finds ineffective companies, buying their shares, pushing the permutations in the manual, after which it sells the cost-effective paper. He bought large, often control packets of companies from different spheres of economy. Among the investment of the businessman was Apple - Akikan bought 4.7 million corporate securities, after which I achieved a reverse ransom in the amount of $ 150 billion.

Photo: Mayofi / unsplash

Brothers Winclossi - Cameron twins and Tyler Winklovos, American investors, famous first of all, judicially with Mark Zuckerberg (Winclossa argued that Zuckerberg used their idea when creating Facebook) and as one of the first investors in Bitcoin. Winclosures became the first cryptocurrency billionaires.

Cos Becker - South African businessman, head of Naspers. Under the start of Becker in 2001, Naspers has invested $ 34 million in a little-known Chinese startup Tencent. According to the results of the transaction, Naspers received 46.5% of the shares of the unprofitable at that time of the project. Over time, Tencent has grown into a huge investment corporation. Tencent's main asset today is the largest messenger of WECHAT in China.

Masayashi Son. - Japanese businessman, founder of Softbank. Created by Softbank Vision Fund Investments Foundation, which invests in new technologies, artificial intelligence and robotics, has become one of the largest investment funds of the silicon valley of recent years.

Photo: Chip Somodevilla / Getty ImagesThe period is very low or absent growth in the economy. The main sign of stagnation is the slowdown in GDP growth rates within 0-3%. Variability price at a certain period of time. Financial indicator in financial risk management. It characterizes the trend of variability of the price - a sharp drop or growth leads to an increase in volatility. More details Financial instance used to attract capital. The main types of securities: stock (provides the owner of the ownership), bonds (debt securities) and their derivatives. Demanding securities, the owner of which has the right to receive from the facial bond, its nominal value in the agreed period. In addition, the bond involves the right of the owner to obtain a percentage of its nominal value or other property rights. Bonds are equivalent of a loan and according to their principle are similar to the lending process. Bonds may produce both states and private companies. More details Dividends are part of profits or free cash flow (FCF), which the company pays to shareholders. The amount of payments depends on the dividend policy. There is also spelled out of their frequency - once a year, every half or a quarter. There are companies that do not pay dividends, but send profits to business development or simply do not have the opportunity due to weak results. More details
: Intellectual Literature, 2019. - ISBN 978-5-6042878-6-6.

Shares of dividend companies are most often interesting to investors who want to achieve financial independence or secure a decent standard of living in pensions. With the help of dividends, they create a source of passive income.

Brokerage account allows individuals to buy and sell securities and currency in stock markets. Since the participants of trading on stock exchanges can only be brokers and dealers, conventional citizens need to conclude an agreement with such intermediaries, thanks to which the broker will conduct transactions on behalf of the investor. The brokerage account is needed to spend money through it for the purchase of securities.

Greetings all readers and subscribers! Since you are reading the Blog Blind, then you probably know that money should work, because investments are one of the best ideas of passive income, which can significantly improve the financial situation of any person. In addition, investment investments approach the most financial independence - the dream of many people in the 21st century, which Robert Kiyosaki wrote about, Bodo Schaefer and other authors of good investment books. In today's blog article, I want to discuss in detail and simple words that such an investment and why investment is not a casino type entertainment, but a real necessity for each person.

In addition, you will find answers to such questions: Before moving on, a small advertising insert: I want to recommend you Interesting investment From the Blog Blog Partner - Intelinvest. . You can follow your portfolio through a website or a mobile application, while you don't need to provide passwords to import transactions. You can keep any assets: shares, bonds, cryptocurrency, precious metals, forex investments, etc. For the sample there is a functional free version. If you want to make a full subscription, use promotional 1vyv9Cmstd. , To obtain

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What is investments with simple words

Popular films about investors are formed in society the view that investing it is simple to occupation only for those who have nowhere to give more money. Well, or for Matte Deltsov, who are sitting in the surroundings of stock exchange graphs and are looking for any loopholes (not always legal) to earn.

Christian Bale in the role of Michael Byery, managing a large investment fund (film "Play down")

In fact, all people are somehow engaged in investing. For example, school / university training is an investment in education that will provide in the future work and salary. Or now classes in the gym are extremely important investments in health for every person. And it also costs money: while man is healthy, he can work in full force and not spend money on medicines. And yet, usually under investment, there is something that is where you can invest money and it will bring profit. If we generalize simple words, then:

Investment

  • - This is the process of investing money into investment tools for the sake of obtaining income or other useful effect. Investments This is usually a long process, because investors prefer not to create income with their own hands, and wait until the money invested over time will give good returns. Usually you can meet two sources of income from investment:
  • Profit from price difference - promotions, metals, oil, real estate for sale, crop-rolls, objects of stupidity;

passive income

- interest in the bank, dividends in promotions, payments for bonds, etc.

Often both sources arrived together, creating double benefits for the investor.

A variety of investment instruments amazing the imagination - both the conservatives and the fans of risky investments are able to find options in the shower. Also for investors there are no criteria for the minimum amount for the entrance. For example, in the investment tools of the Forex market can be invested from $ 10, that is, it is not necessary to be rich in order to start investing. Of course, you should not count on a big profit with such a small contribution, but at least try to happen, and then you can already act on the basis of your goals, skills and opportunities.

By the way, investors can act not only by private individuals, but also large organizations or even entire states. For example, one of the most reliable investment tools at the moment is the US public debt, countries with the most developed and largest economy. Now the debt is more than 22 trillion dollars, and its key investors are countries such as China (18.4% or 1.1 trillion $) and Japan (16.4%, or 1 trillion $).

The world of investing is too big to tell about him in one article, but I will try to convey the most important thing that you need to know. To begin with - a little theory.

↑ to content ↑

Pepper's robot, developed by Softbank, and head of Masayashi Son

Types of investment

Real investment In economic literature, investments are usually divided into two main types:

In fact, this table can be clarified and expanded to infinity, but before me is not worth the task of prepare you for the exam in the economy :) For a general understanding, it is enough to know about two main types of investment, and which differences between them.

Financial investments Associated with material production is to buy equipment, building new premises, expansion of production, purchase of land and real estate. It can also be intangible assets associated with production - licenses, patents, trademarks.

I think the question "why do you need real investments" should not arise. How can you build a car without building the automotive factory first and how to compete with other manufacturers, if you do not invest in modern equipment? Real investments are playing a crucial role in the economy, it is they who create the basis of the gross product of any country. However, ordinary private investors seems to be difficult to invest you directly invest in the real sector, because for this you need big money and the opportunity to participate in a major business. Therefore, if you are offered to invest somewhere, then you probably mean the second type of investment - financial.

- This is an investment in order to receive income into financial instruments that are traded in the stock, credit and foreign exchange markets.

  • The feature of financial investments is that they work according to the Money Money formula: the investor gives a certain amount and takes it back with interest, or reinves profit. As you could see in the table above, there are two main approaches to financial investments: speculative and long-term. The differences between them are:
  • Speculative investments suggest income due to short-term transactions on the difference between purchase and sale prices;

Long-term investments

Credit due to the long-term increase in the price of the asset, as well as dividends, interest payments, etc.

By the way, investors can act not only by private individuals, but also large organizations or even entire states. For example, one of the most reliable investment tools at the moment is the US public debt, countries with the most developed and largest economy. Now the debt is more than 22 trillion dollars, and its key investors are countries such as China (18.4% or 1.1 trillion $) and Japan (16.4%, or 1 trillion $).

Nevertheless, there is no single opinion about whether it is worth separating speculation and long-term investments are still not. From my point of view, two types of investment are very different in practice: speculation require constant attention and rapid response to the market situation (this is actually a full work). Long-term investments in turn require expert analysis of the options for investment of money, to observe enough several hours a week.

On the Blog of the Biblisser, I consider only financial investments that are available to every person and allow you to earn even without much starting capital.

Why you need to invest

If you are a permanent reader of my blog, you are unlikely to be convinced that it is necessary to invest in improving financial well-being. However, there is always at least two points of view. I also met such an opinion: "Why should I risk your money in incomprehensible and risky investments, if so ok?". Surely you yourself know people who cost without any investments. For this reason, I want to express my arguments about why I consider investments not just entertainment for the rich, but a vital necessity for a person with any level of wealth.

Money is rapidly losing value due to inflation This is especially true of the countries of the former USSR (not counting the Baltic States). Just laying out a part of the salary in the zakuchka, you agree that every year this money will lose up to 15% of the real value, and sometimes even more - and it is not cool at all.

Inflation

- This is an increase in prices for goods and, as a result, reducing the purchasing power of money. Inflation 10% means that prices on average rose by 10%, and you can an average of 10% less than the same amount.

The easiest way to solve the problem of inflation is to buy dollars or euros, which depreciate significantly slower than the remaining currencies:

Plus, buying currency, you expect to earn including at the difference of courses - and this can already be called financial investments. To make sure of their effectiveness, it is enough to remember 2013-2014 in Russia and Ukraine, when national currencies fell 2 and 3 times with respect to the dollar, respectively. Practice shows that such crises occur once every 5-10 years.

And you can also receive a passive income in the currency on top, putting money to the bank, the truth rates on deposits in dollars and the euro rarely exceed 1-2%, so more than to cover inflation, it is unlikely to turn out. If you want to earn something, then you should go, for example, to the American stock market, which has an average yield of 6.5% per annum.

  • Investments bring money without high time Time is a very valuable resource, but for normal life we ​​have to convert it into money. What to do when I want to earn more than now? When it comes to traditional womb, then you can:
  • search space with salary higher but alas, not everyone is destined to become presidents of large companies or supervised specialists who are really paid a lot;

Work over measure Using the humanism limit in the area of ​​80-100 hours a week, but again it is not for everyone and is generally very harmful to health. Actually, why many people dream of becoming at the head of a large company? It's not easy to earn, but for others to work for them and create additional profit for business, and therefore for its owner. Exactly the same approach is used in

What is investing in movies

Financial investments

: You are becoming at the head of the company called "Investment Portfolio" and hire workers - financial instruments that make money you:

That is how my own investment portfolio looks like this at the time of writing the article. The main task, as its owner, is to follow the work of subordinates (investment instruments), "hire" good and "dismiss" bad. It looks like the work of the director of the ordinary company, only time spent is much lower - just a few hours a week, which allows me to engage in other projects - develop a blog, develop tools for investors, spend time on training, etc.

Not the fact that you will have a normal pension

The sensational pension reform in Russia, the lowest Ukrainian pensions and global trends in Europe, generally suggest that it is quite difficult to count on secured old age from the state. And in general, just to live to retirement will be an achievement:

I absolutely do not like that I have to work up to 60 for up to 60, so that later getting a penny. Of course, it can be in Europe and can be retired normally, but we will not definitely come out. One way or another will have to count on their strength, and it is necessary to prepare now, especially if you are still young - there will be enough time to achieve a strong financial situation.

Investments help solve the pension problem. First, you can get a good passive income by investing in the tools that make a profit regularly - deposits, bonds, shares with dividends, real estate. Secondly, at the expense of investments, it is possible to significantly increase their accumulations for those years that remained to retirement age - the effect of a complex percent will play the recent role.

Investing improves financial literacy

  • The ability to properly dispose of financial resources is difficult to overestimate, because the money in the 21st century means life. What do you think, what will happen if "restart" the financial system and distribute to each person on the planet, say, $ 5000? A year later, some people will become millionaires, and some beggars. And the ricers mostly will be the people who were rich before, which means they knew how to handle money well.
  • What skills are financially competent people? They are:
  • Create accounting of income and expenses and understand where the money comes from and where they go;
  • Know the skills of financial planning and thanks to this can achieve large goals;

know how to competently spend money and create new sources of income;

In general, they have the right monetary thinking, which makes them financially successful.

In general, in order to competently manage your finances, you need to study quite a lot of different things, many are closely connected with mathematics. Lucky, if you are interested in life, and if not, where to take the motivation? Well, the desire to earn perfectly motivates :) enough of curiosity to invest a small amount (you are a reasonable person and you will not risk big money without preparing) and watch it in order to have an interest in learning investment.

By the way, investors can act not only by private individuals, but also large organizations or even entire states. For example, one of the most reliable investment tools at the moment is the US public debt, countries with the most developed and largest economy. Now the debt is more than 22 trillion dollars, and its key investors are countries such as China (18.4% or 1.1 trillion $) and Japan (16.4%, or 1 trillion $).

In parallel, it is worth starting to keep investment accounting to assess your results and understand how much you earned in currency and in percent. At least I started so much. The main thing is to take the first step, then it is certainly drawn into the process, and on the way you will definitely learn better to manage your finances.

If you think, you can find a lot of arguments "for", but that's enough with your head, in my opinion. Investing should be done by everyone, this is a real necessity. Where can I not profitably invest money? This is the next section of the article.

Favorable investment options

As I already wrote, there are a lot of investment options, and the more money you have, the more opportunities are available. They can be very different in terms of profitability, but generally comply with the rule:

Investments are real and financial

The higher the profitability of the investment instrument, the higher the risks of investment! Many novice investors are not suspected of such regularity and invest money where they offer the biggest percentage. And then unpleasantly surprised when they lose their deposits. So let's figure it out where today you can invest money and what risks are laid in each investment instrument.

An example of an investment portfolio

Bank deposits - Low yield and low risks. Probably the most famous and easy way to invest money: a person comes to the bank, leaves money there for storage and gets a fixed prize in the form of interest on a deposit. Of the advantages, it is possible to note the predictability of profits and insurance due to the State Fund to guarantee deposits. Unfortunately, the profitability of bank deposits is close to inflation, they will not earn nothing particularly.

Investments in bank deposits

Shares - profitability and risks depend on the selected shares. A traditional way to invest, known since the XVII century: the investor buys a share in the joint-stock company and receives the right to dividends and part of the property in the event of the liquidation of the company. It is also actually profit in hundreds and thousands of percent due to the growth in the company's stock price. Pros: High historical yield, a wide variety of options, good liquidity, the ability to invest online.

Bonds - The profitability is on average close to bank deposits, there are risky options with high return rates. Bonds are debt securities that, after a certain period, give the right to return the nominal value with interest (coupon income). The nominal and real value of the bonds may differ, which makes it possible to earn at the price difference (discount income). Together with the shares, enter the traditional set of a conservative investor.

FUT INVESTMENT FUNDS (PIFES) - organizations that are professionally engaged in the capital management of investors in the securities market. The yield can be both higher and below bank deposits, depends on the composition and success of the investment portfolio of the FIF. Investors receive a part of the fund's profits in proportion to their contribution (Paus).

The property - The yield and risks are low, however, the volume of such investments in the world exceeds any other options for money investment. And all because the property is considered one of the most reliable and profitable investment instruments in a long time, a good real estate is relevant for decades. There are no living and commercial real estate, the methods of earnings do not differ in this - renting or resale.

Investing in art - One of the classic investment methods, capable of bringing good profits to those who understand this sphere. The most famous way to invest in art is to buy pictures of famous artists. The price of paintings depends not on the cost of its creation, but from the fame of the artist, the uniqueness and value of the picture, its age, the popularity of style and the historical era.

Precious metals , More precisely, gold, silver, platinum or palladium. You can invest in metals in different ways: buy bars, gold coins or decorations, sell gold through broker, open impersonal metal bills. Investments in precious metals are made for years ahead, growth trends can last for a very long time (2001-2012 for example), just like their absence (gold prices are not growing since 2013).

Education investment It is necessary to each person in the modern world, but everything does not end at school and university. In whatever industry you do not work, there will always be to learn what to learn. Perhaps the best financial return can be obtained from training to invest and managing personal finances. It is also advantageous to invest money in professional business courses.

Forex Market Market - The interbank exchange market of currency exchange with a huge turnover (several trillion $ a day), to which investors with any income level can now be available. Such investment methods in the foreign exchange market are greatest interest: PAMM-account (trust capital management), copying transactions (trade in successful public strategies), trade advisors (fully automated trade).

Cryptocurrencies - A modern way to invest, which survived an incredible boom in 2017 and the same impressive decline in 2018. Prospects for investment in cryptocurrency unclear, invest in her perspective risky, but the fact that the future for this technology is a fact. The most famous and popular - cryptocurrency of Bitcoin, after him everyone else follows, but in 2019-2025, new currencies will appear from a large business that can shake the leadership of Bitcoin. Financial pyramids

and Haip - Trap for beginners and an interesting investment opportunity for experienced investors. New pyramids / Haipes appear and disappear daily, investigate in them very risky. The main working tactic is to double and remove the initial deposit. To improve the results, many investors are engaged in advertising and attracting new customers.

Startups - An interesting modern way of investing, which, if success, can bring a very big profit. Startup is not a ready-made business, its basic value is an idea and a team, and the final result of the work is a product that is able to attract the attention of a large number of customers. It was from the startups that such giants like Apple, Twitter, Facebook and Amazon rose at one time.

Investing in sites - Purchase of Internet resources in order to earn money on advertising. An interesting way to invest money, a good resource pays off in 1-3 years, plus you can always resale. To successfully invest in sites, it is very desirable to understand the site building - the words HTML, SEO, Wordpress should not scare. It is even more profitable to invest in your own website, which you know and understand what is more profitable to spend the budget.

Social networks

By the way, investors can act not only by private individuals, but also large organizations or even entire states. For example, one of the most reliable investment tools at the moment is the US public debt, countries with the most developed and largest economy. Now the debt is more than 22 trillion dollars, and its key investors are countries such as China (18.4% or 1.1 trillion $) and Japan (16.4%, or 1 trillion $).

Risks of investment

- Interesting investment area. All who understood their strength on time has already collected an audience around them and successfully promote their business or advertise other products. Thanks to investments in the social network, even now you can quickly recruit subscribers and start receiving income from advertising your products or through the offers of advertisers who will find you.

In order not to increase the already big article, I told about each form of investment only briefly. In the future, I plan to devote a separate article to this issue, so subscribe to blog updates to miss anything. For people who are not accustomed to investing, the word "risk" seems quite scary, because it means a chance to loss of money, often earned by hard labor. However, the truth is that money in any form and any place is constantly subject to various investment risks - even if they lie in the safe, inflation still makes their business. To at least not lose money, you have to invest. I think, on the past section of the article, you already understood that

Risk investment does not provide in principle.

  • Whatever investment tool we have taken - deposits, stocks, real estate, metals, pamm accounts, crypt - everyone is subject to at least several sources of risk. They can have a different impact on the result, but the investor has to be considered with everyone if he wants to increase his chances of earnings. Of course, it is possible to find assets with minimal risk and additional guarantees, but their profitability will allow maximy to defeat inflation - a bank deposit for example. But if you want more, you will have to risk, then that a rule of proven theory and practice is "the higher yield, the higher the risk." However, the risk is a famous beast, you can completely predict, for what reason money may be lost, and warned - it means armed. Each investment tool has its own risks, for example, when investing in PAMM accounts, you can encounter such:
  • Trade risk - the likelihood that the PAMM-Managing is bident to trade unsuccessfully;
  • non-trade risk - the probability that a broker, through which I invest in will go bankrupt;

Currency risk

- The probability of depreciation of the currency of the deposit on PAMM account or unfavorable course changes.

Everything would not be fun of fun if economic science did not develop various ways to protect against risks. The most simple and effective is to create an investment portfolio, taking into account the requirements of competent risk diversification. Attacking money in several tools at the same time allows you to smooth out the American slides of individual investment tools to a smooth pleasant growth line:

A graph of portfolio yield from three tools is much smaller than each individual asset schedule, which speaks of lower risks. Download file with schedule

By the way, investors can act not only by private individuals, but also large organizations or even entire states. For example, one of the most reliable investment tools at the moment is the US public debt, countries with the most developed and largest economy. Now the debt is more than 22 trillion dollars, and its key investors are countries such as China (18.4% or 1.1 trillion $) and Japan (16.4%, or 1 trillion $).

Another way to reduce investment risks is to select only the highest quality options from the entire list of proposals. That is, not to invest money in everything that I liked, but only in the best or best. In this case, the chances of earning and not to lose becomes much higher.

Diversification and careful selection of investment tools are the most effective ways to reduce risks, but they do not completely probably remove losses. Unfortunately, it is impossible to invest money and at the same time nothing risks, it's just necessary to get used to it. If you, of course, want to defeat inflation.

Where to get money for investing

Most of us live not in rich countries with high salaries, so I am sure that not everyone can just click the finger to find money for investing. Nevertheless, it must be done to strengthen its financial position. I offer you a few ideas from where to take money on investment.

Idea number 1. Use unplanned income

Each of us is used to living about the same amount per month, not counting big shopping and trips. However, there are months when income exceeds the average level - due to award, gifts, winning the lottery ... An ordinary desire in this case is to pamper yourself with a new purchase, but this money can be spent on investment.

Idea number 2. Use salary residues

Not often it happens, but still. If extra money remained at the end of the month, send them to invest. And so that these remnants sometimes remained, learn how to spend money properly - in charge of income and expenses, go to the store with a list, try to save on large purchases. Once a kopeck, two kopecks - you look, too much money.

Idea number 3. Sell ​​something unnecessary

This recommendation is relevant, even if you do not want to invest - why accumulate trash? Now everything can be sold over the Internet, and the money received can be made to benefit.

Idea number 4. Refuse bad habits

Have you ever tried to count how much money is spending on smoking and alcohol? If not, I highly recommend (for this it is necessary to keep personal finance) - the numbers you are unlikely to like. Perhaps it will help to reconsider your attitude towards bad habits - and it will be useful for both health and wallet. Extra money will appear that you can invest.

Idea number 5. Part-time job, Freilance

Opportunities to earn additional money through the Internet is now a lot. If you know how to at least something you need, you can find a part-time job. Since this is not your main income, you can spend it on investment.

Idea number 6. Optimization of expenses

If you learn how to spend money, your expenses will decrease. As you know, if you did not spend - you earned, so you can find resources for investment in investment instruments.

By the way, investors can act not only by private individuals, but also large organizations or even entire states. For example, one of the most reliable investment tools at the moment is the US public debt, countries with the most developed and largest economy. Now the debt is more than 22 trillion dollars, and its key investors are countries such as China (18.4% or 1.1 trillion $) and Japan (16.4%, or 1 trillion $).

Idea number 7. Select some income

Previous ideas for the search for money for investment did not assume deterioration in the quality of your life. But let's look at the truth - from the fact that you will postpone 10% of the salary, nothing will change much, you just have to spend a little more careful to spend money. But these 10% for several years can help you lend a good capital, which will improve your financial position.

How to start investing with a small amount of money

  • The fact that such an investment and their need is usually spoken by those who have an extra money that needs to go somewhere. But if everything went to the most money - a business or politics, who would teach children and treated adults? As you know, the salary of teachers and doctors leaves much to be desired, so investments for them are something distant and unattainable. With low income, it remains only to live from salary and salaries, and there is no speech on investing.
  • Nevertheless, in the past section of the articles, we have already made sure that if you wish, you really find money. Yes, it can be a penny, nevertheless, even in such a situation, it is worth thinking about financial investments, for several reasons:
  • Without knowledge and experience anyway, it will not be possible to competently invest a large amount of money, so it is better to start with a small one;

The minimum amount for many options for investing money is actually absent: for investment in the forex market, some embodiments in stocks, metals and crypt; Banally, but if you do not try to change your financial situation, it will not change. Let's try to simulate the situation with the most rainbow financial position and check whether it makes sense to invest in such conditions. One of the main principles of personal finance management -

Pay first to yourself

Investing in stock

. It means that when receiving income, you must first postpone the necessary amount on your projects / goals, in our case on financial investments.

The amount of $ 20 seems quite lifting even for people with low income, so suppose that the investor postpones on the investment in the twenty per month. What results can be obtained? If you invest money in the PAMM account, it is possible to receive an average of about 2% per month - the statistics of the best PAMM accounts over the past few years confirms. We use this figure in the calculations and see how the investor capital will grow:

By the way, investors can act not only by private individuals, but also large organizations or even entire states. For example, one of the most reliable investment tools at the moment is the US public debt, countries with the most developed and largest economy. Now the debt is more than 22 trillion dollars, and its key investors are countries such as China (18.4% or 1.1 trillion $) and Japan (16.4%, or 1 trillion $).

In general, a small amount of $ 20 with a monthly contribution under 2% per month turns into $ 2237 in just 5 years. Not bad, right? And if you postpone more money? And if you learn to invest and draw up a quality investment portfolio? Results can become even more interesting.

Investment of money in bonds

Of course, in real life there is a chance to lose part of this money due to unsuccessful investments. That is why it is necessary to study the theory and practicing. I hope my blog will help you with this: here you will find many articles on various aspects of investment, as well as guidelines for the investment in specific investment instruments.

1Well, congratulations! You have read the longest article on the blog of the BBB :) What is the investment, it is impossible to tell briefly, because it is an extensive topic on which textbooks write. My task was to convince you that investing is simple words in the list of tasks of each adult. Happened? Let me know by voting:

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As you can see, more than 90% of readers consider investments important for themselves - this is a convincing answer to the question "Is it worth investing?".

If the article liked - be sure to share social networks:

Finally, join the discussion in the comments:

What is investment from scratchDo you invest? If not a secret, tell me where. And if you do not invest money, what stops you?

I wish every reader to blog success in investing!

Author: Alexander Dubchenko

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Facebook. ). Since 2016, he has been a blog on investing on the Internet, studying investments in PAMM-accounts, stocks, cryptocurrency, precious metals, and foreign exchange market. Also developing auxiliary tools for investors based on MS Excel. Always ready to answer any of your questions. Investments (eng. Investment. ) - Capital placement in order to profit [one]

Facebook. [2] . Investment are an integral part of the modern economy. Investment loans differ from the risk of investor (creditor) - a loan and interest must return to the agreed deadlines, regardless of the profitability of the project, investments (invested capital) are returned and bring income only in profitable projects. If the project is unprofitable - investments may be lost in whole or in part. - cash, securities, other property, including property rights, other rights that have a monetary assessment invested in the objects of entrepreneurial and (or) other activities in order to produce profit and (or) achieve other useful effects [3] .

.TO. R. McConnell and S. L. Brub in his book Economics have identified investments as the cost of manufacturing and accumulation of means of production, as well as an increase in material reserves [four] . Investment are an integral part of the modern economy. Investment loans differ from the risk of investor (creditor) - a loan and interest must return to the agreed deadlines, regardless of the profitability of the project, investments (invested capital) are returned and bring income only in profitable projects. If the project is unprofitable - investments may be lost in whole or in part. .

Investment activities

- investment investment and practical action in order to profit and (or) achieve other useful effects Sb111VF7DCDY_IZ4. From the position of the monetary theory of money, funds can be sent to consumption or savings. A simple savings withdraws from turnover and creates prerequisites for crises. Investing also involves savings in turnover. It can occur directly or indirectly (placement of temporarily free funds on a deposit to the bank, which will already invest). From the position of the monetary theory of money, funds can be sent to consumption or savings. A simple savings withdraws from turnover and creates prerequisites for crises. Investing also involves savings in turnover. It can occur directly or indirectly (placement of temporarily free funds on a deposit to the bank, which will already invest).Investments in the national economy lead to the total growth of GDP by a value significantly exceeding the amount of investment. Keynes believed that the sum of the initial investment would give the appropriate GDP growth. But the people who received this money will send a part of consumption (which will form an additional GDP growth), and part will go to savings (will not be exchanged for goods, operating demand will decrease by this amount). The funds aimed at consumption will be divided into new consumption (making a new contribution to GDP, even if there is an increasing amount) and a new accumulation. Illustrates this next scheme. Let the investment creates additional demand forming 100 jobs. People who have gained work part of their income will send consumption, which will provide 80 workers. These employees, in turn, will send part of the consumption income, which will give 64 jobs. And so on as long as the initial investment is completely absorbed by the savings. Therefore, a one-time investment forms total GDP for a plurality of periods as an amount of decreasing geometric progression b1{\ displaystyle s \ to b_ {1} {\ FRAC {1} {1-Q}}} Loading ...where VF7DCDY_IZ4. {\ displaystyle b_ {1}} VF7DCDY_IZ4.equal to the initial investment, 1VF7DCDY_IZ4. {\ displaystyle q} {\ displaystyle q}- Limit tendency to consumption, 11VF7DCDY_IZ4. {\ DisplayStyle 1-Q} {\ DisplayStyle 1-Q}- Limit tendency to savings. Coefficient

{\ displaystyle {\ FRAC {1} {1-Q}}} And there is a Keynes multiplier, which shows a possible total effect on GDP from investments with a given limit propensity to savings. Accelerator

- This is the ratio of increment of investments to its relative income, consumer demand and finished products. The accelerator reflects the ratio of product growth only to induced investment, that is, to new capital.

[five]

Real investment There are different classifications of investment.

Financial investments On the object of investment allocate

Venture investment

Speculative investments (Direct purchase of real capital in various forms):

(indirect purchase of capital through financial assets):
(Buying assets exclusively for the possible price change):
  • For the main investment goals
  • In terms of investment
  • short-term (up to one year);
medium-term (1-3 years);
Long-term (over 3-5 years). In the form of ownership of investment resources
  • According to the method of reproduction
  • [6]
  • Gross investment - the total volume of investments in new construction, the acquisition of funds and objects of labor, the increase in inventory and intellectual values;

Renovative investments (investments of updates) - investments in simple reproduction of fixed assets and amortized intangible assets (usually in the amount of depreciation deductions).

Clean investments - the amount of gross investment minus depreciation deductions.

By factors determining the amount of demand for investment: - autonomous, that is, those investments that are not caused by the growth of aggregate demand (that is, national income), but are a consequence of innovations, scientific and technological progress;

- induced, that is, caused by the growth of aggregate demand (national income).

[7] Many well-known economists condemn the practice of public investment in connection with the threat of ineffective placement of funds. Representatives of the Austrian Economic School, for example, the books of Ludwig von Mises "Socialism", "Bureaucratistry", are most consistent in this direction.

The line between the investment and speculation is blurred. Typically, the disarming criterion indicates the time factor. If the operation lasts more than a year is an investment, and the economic effect it will give a considerable time after investment. If up to a year is speculation. For example, "Modern Economic Dictionary" indicates:

[8]

Investments - "long-term investments" of public or private capital in their own country or abroad with the aim of obtaining income into enterprises of various industries, entrepreneurial projects, socio-economic programs, innovative projects.

At the same time, when they talk about stock trade, they are talking about attracting, for example, "portfolio investors", which are sensitive to the situation in the market and can leave it, not paying attention to the duration of transactions. According to the nature of the contracts, proceeds, the goals, the legal consequences, stock investments and speculation are no different.

Benjamin Graham offered an investment to consider an operation based on a thorough analysis of facts, prospects, security of invested and sufficient income. Everything else was recognized as speculation.

[nine]

Often, the distinction is carried out by the criterion of the organization of the new business (real investment, the funds are spent on the purchase of equipment, raw materials, training personnel) or participation in the existing business (speculation, means are spent on the purchase of corporate rights, securities).

  1. Sometimes the purpose of the separation is the purpose of the operation. Speculation is considered an operation in which the goal is the difference in price (stocks, share, goods). The transaction can last long, but the income is formed only once when selling or repaying the asset. The investment is considered an operation, the purpose of which is the income in the form of interest (dividends) accrued to the acquired asset. Accruals are systematic and the time of circulation of the purchased asset is not limited.
  2. It is believed that an enterprise should be for attracting investment:
  3. Have a well-worked and promising plan of activity for the future. Investors want to know that their deposits will bring profit in the future.
  4. Have a good reputation in society. Investing in a shadow enterprise, investors risk to stay without profit, so only those enterprises that cause trust are chosen.

Lead open, that is, transparent activities. You need accounted and work with the media.

Much depends on the internal policy carried out in the country in which the company is located. For deposits, investors choose the most stable countries. However, in practice, these conditions are necessary for portfolio investors. Investments may well be attracted without these conditions, but in the confidence of the investor in compliance with their rights to the disposal of capital and profit. Such confidence can guarantee not only the laws and transparency of accounting, but also personal connections, for example, in the government or parliament, obtaining the right to directly control the situation in the enterprise through a controlling stake and the appointment of the director or personal direct leadership. A significant factor in attracting investment is the ratio of profits and risk. Part of the investors choose a smaller risk, agreeing to less profit (and vice versa). Commodity companies do not have to choose in general: go to where there is a resource. In addition, to attract investments are sometimes created

special terms. An example of creating such special conditions is special economic zones (SEZ). For example, in Russia Currently, the EEZ "Lipetsk", the SEZ "Alabuga", SEZ "Tolyatti" and others are created. .

The set of conditions for the investor is sometimes called ["Investment climate" | Pros and cons of attraction of investment ]

edit

  • Code
  • At the initial stage, external investments give companies two main advantages: Capital, allowing to go to the next stage of development; .

Improve the quality of management, in particular due to the strengthening of the discipline and adjust the strategy

[ten]

Investments are characterized, among other things, two interrelated parameters: risk and profit (profitability). As a rule, the higher the risk of investment, the higher the expected yield should be. To describe the ratio between risk and profit, the CAPM model is often used. The value of investment risk shows the likelihood of loss of investment and income from them. The magnitude of the total integral risk is made up of seven types of risk: legislative, political, social, economic, financial, criminal, environmental. At the same time, the average Russian risk is taken per unit, and the real indicators of the regions may deviate. A large influence on the amount of investments is provided by the conditions of doing business in a particular country (they are also called Investment climet .

). The most important indicators of a favorable investment climate are guarantees of respect for ownership, predictability and stability of business conditions

[eleven]

Investment project - an economic or social project based on investments; The rationale for the economic feasibility, the volume and timing of the implementation of direct investment in a specific object, which includes design and estimate documentation developed in accordance with the current standards. Sometimes for convenience, the concept of a business plan is distinguished to designate justification, while the project itself is called an "investment project".

Investment projects are divided into: industrial, scientific and technical, commercial, financial, economic, socio-economic. In commercial practice, it is customary to allocate: investments in financial assets; investment in cash assets; Investments in intangible assets.

Investment Pai - (in accordance with the Federal Law of N 156-FZ "On Investment Funds" of November 29, 2001) Normal Security Paper, certifying the share of its owner in the right of ownership of property, which makes a share investment fund, the right to demand from the management company of proper Trust management of the Pass Investment Fund, the right to receive monetary compensation upon termination of the contract of trust management of the Pass Investment Fund with all the owners of the investment feud of this mutual investment fund (termination of the Passive Investment Fund).

Investment Pai of the Open Passion Investment Fund certifies the right of the owner of this share to demand from the management company repayment of the investment share and payments in connection with this monetary compensation, commensurate the share of the share in the right of the property on the property that makes this dull investment fund, on any working day . The investment tax of a closed mutual investment fund also certifies the right of the owner of this share to demand from the management company of the repayment of the investment education and payments in connection with this monetary compensation, commensurate the share on it in the right of common ownership of property that makes this share investment fund, in cases provided for in cases Federal Law of N 156-FZ "On Investment Funds" of November 29, 2001, the right to participate in the general meeting of investment fell owners and, if the rules of trust management of this mutual investment fund provides for the payment of income from the trust management of property that makes this share investment fund, The right to get such income. Investment Memorandum (eng.

Offering Memorandum. ) - A document for external use, which should demonstrate to potential investors and creditors Investment attractiveness of the project, provides an opportunity to analyze the most likely investment risks. The emphasis in the investment memorandum is made on the description of a business idea, a business model and a company that implements it. Including, on the basis of this document, the investor decides on his interest and the need for further, more detailed study of the investment in a business or project. Divestration (eng. Divestment, Divestiture.

  1. ) - seizure of investments, selling a part of the assets or the entire company. Divestration is the opposite of investment. The term is most often used for a situation where the company sells its division. Usually this sale is undertaken to focus the resources on a more promising direction for the company. Sometimes the separation of the company is made by virtue of antitrust restrictions. Sometimes the sale of assets is associated with ethical considerations. So the General Synod of the Church of England approved a proposal for the deiversity (withdrawal of investments) from companies receiving profit from the "illegal occupation" of the Palestinian lands by Israel. [12] Raisberg B. A., Lozovsky L. Sh., Starodubtseva E. B.
  2. Modern Economic Dictionary. : M. Infra-M, 2006. "Investments" Archival copy of September 23, 2008 on Wayback Machine (Inaccessible link from 14-06-2016 [1753 days]) Investorwords Dictionary:
  3. 1 2 Investments
  4. - Investing money for the purpose of economic benefit. Federal Law "On Investment Activities in the Russian Federation, carried out in the form of capital investments" of February 25, 1999 McConnell K. R., Mr. S.L. Economics: principles, problems and politics. -
  5. M.  : Republic, 1992. - T. 2. - P. 388. - 400 p. - ISBN 5-250-01486-0. Accelerator (in the economy) (Neopr.)
  6. . www.booksite.ru. Date of handling: April 25, 2019.
  7. Collective authors.  The economy of the company. - Litres, 2017-09-05. - 525 p. - ISBN 9785040187232. .
  8. Autonomous and induced investment
  9. (rus.) Investment Archival Copy of August 21, 2019 on Wayback Machine // Modern Economic Dictionary
  10. Benjamin Graham, Jason Tsweig.
  11. "Reasonable Investor", Ch.1 Noam Wasserman, 2014, p. 197. "Putin's Russia: SOCHI OR BUST",
  12. THE ECONOMOMIST.
  • Feb 1st 2014. Church of England "punish" Israel for the occupation of Palestinian territories McConnell K. R., Mr. S.L. Zvi Bodi, Alex Kane, Alan Markus.
  • Investment Principles = Essentials of Investments. - : "Williams", 2004. - 984 p. - ISBN 978-5-8459-1311-1.
  • Petrov V. S. Theory and practice of investment analysis of stock assets. Informaliz. - M: Market DS, 2008. - 480 p. - ISBN 978-5-7958-0201-5.
  • Savenok, Vladimir Stepanovich.
  • Personal financial plan. The first step to financial independence. - Peter, 2009. - 320 p. - ISBN 978-5-91180-994-2. Investment activity factors. Head from the book "System Monitoring: Global and Regional Development". M.: Librok / URSS, 2010 (ISBN 978-5-397-00917-1). P. 259-292. McConnell K. R., Mr. S.L. Noam Wasserman.
  • Home Book of Business Founder: Who to take with you how to share a profit, how to distribute the roles and other questions that need to be solved from the very beginning = The Founder's Dilemmas Anticipating and Avoiding the Pitfalls That Can Sink A Startup. -
  • : Alpina Publisher, 2014. - 364 p. - ISBN 978-5-9614-4445-2. Federal Law of February 25, 1999 N 39-FZ "On Investment Activities in the Russian Federation, carried out in the form of capital investments" McConnell K. R., Mr. S.L. Gerald Otty.

From the rank! How to make money on alternative investments. -

For the first payment.

: Intellectual Literature, 2019. - ISBN 978-5-6042878-6-6.

The secret of most millionaires and simply provided people - in constant increase in capital due to successful investments.

What is investment

Investments are any investment in order to receive income. Profit can be short-term or calculated for a long time. From what kind of investment method will choose a person, its income depends.

If this attachment with minimal risks, as a bank deposit, the benefit will be only a few percent, and wait for at least a year. If the tools are invested in business or securities, then it is possible to earn good here, but also a great risk to be anything. Simple example

What can be considered an investment?

Any investment of money, which in the future will make a profit. Consider an elementary example. You bought a laptop with a big discount, and in a month they sold it to Avito at a higher cost. This also applies to the concept of investment, although it will bring a small income.

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Another example. You bought a used car in good condition and began to rent it. Six months later, the car paid off and began to bring pure profits.

You can continue the development of events in this example. When the car came into disrepair, you sold it on parts than reduced the cost of purchasing another car. Now you are already buying not alone, but two cars for reversed from renting funds. Now they bring 2 times more income than before.

If you develop your work so much, it will grow to the company, and will bring big profits. This is an example of a successful investment.

In these examples and a laptop, and cars are assets. The income is growing with their increase.

Where to invest

Before choosing an embedding version of money, it is worth competent to assess the level of risk and the amount of possible profits. It is necessary to focus on the economic situation in the country. And do not get involved in cases that require a certain level of knowledge, if you have no such. Choose another way of investing or thoroughly examine the principle of operation of a new direction for yourself.

  • Bank deposits This is the easiest way to invest money, but also the most low-visible. Income from Vlad will be no more than 10% per annum, but also to find such an interest rate. The highest interest on deposits offer the following banks:
  • Svyaz-Bank - 10.1%
  • Sovcombank - 9.8%
  • VTB, Tinkoff - nine%
  • Raiffeisen - 7.7%

Alfa Bank -

7%

But most often the level of profitability is 4-5% per annum. The advantage of deposits is the reliability and accessibility to everyone, disadvantage - minimum profits.

Investing in precious metals

  1. The volume of precious metals in the world is limited, so their cost is always at a high level. These include gold, platinum, silver and palladium. Investments in metals brings profit in the long term, as the price of them is gradually growing.
  2. Investing in the metal has several options:
  3. Buying a gold ingot or coins.
Q.
Opening a metal account in the bank.

Buying shares of gold mining companies.

In Russia over the past 10 years, the price of gold rose 6 times. There are no factors that impede the growth of the cost of metals.

This is an investment for a long time. For more rapid revenue, metal accounts will be suitable. The nested amount is converted into metal grams. Recalculation of the amount occurs constantly, as the cost of metal heels.

Food investment funds

With this embodiment, the investment money is transmitted to trust. Representatives of the Foundation are investing shareholders, and the resulting profit shares between the participants and the Foundation itself.

Pails are easy to buy and sell. The conditions for such cooperation indicate the contract. Carefully learn it before giving your money.

The advantage of mutual investments is that professionals are engaged in receiving profits. No need to be an expert in investing to get a good profit. Income from PAEV is not taxed, funds are governed by the state and the purchase of mutuals is available to everyone. On average, the yield from shares is 30%, but can reach up to 50%, which is 5 times the profit from bank deposits.

Investments in securities

The beginners in this niche will have difficulty, and a great risk to ruin. Attachment in securities should be engaged, only having experience and knowledge in economics and finance. If there are no skills, then you should trust this business broker.

To ensure that profits from papers is impossible, this is a risky enterprise. But if it is successful, it can bring up to 100% income or more - the profitability of papers is not limited.

Investing in real estate

  1. The return on investment in real estate depends on external factors - the regional situation, the country's economy.
  2. How to make a profit from the purchase of real estate:

investment

Rent a room or apartment for rent. This is a type of passive earnings that the owner receives without spending time, forces and some additional resources.

Resell for a higher price. This is possible when buying in the period of recession of cost and sale during the rise of real estate prices. Another option is to buy accommodation in poor condition, make repairs and resell for the price that pays for and buying and repaired.

In Russia, in many regions, the demand for the purchase of real estate is not as great as a proposal. Rent may be more profitable.

  • Investing in business
  • The investment in its business is the most highly profitable way of investing, but also the most risky. Create a successful business is not easy - most novice companies become bankrupt in the first year of their existence. The profitability of its own business depends on such factors:
  • Selected niche;
  • Knowledge and experience of the entrepreneur, its internal qualities;

Novelty and originality of the idea, advantages over competitors;

Literacy of the built strategy.

To reduce risks, you can buy a franchise and work under a well-known brand. Another option is to buy a ready-made business.

Investments in startups

Investments in precious metal

On average, 20% of startups are successful and bring profit. Others require additional investments or are unprofitable.

Attach your money in the startup simply - novice businessmen attract investors in their projects on the Internet. It is not necessary to immediately invest large amounts, you can start with several thousand rubles to get experience and understand the mechanism of such receipt.

  • Investing in Internet projects
  • Business on the Internet is rapidly developing - it is worth hurry to take its niche in this market. What brings income:
  • online stores;
  • Groups in social networks;
  • information sites;

Blogs;

Entertainment sites.

Real estate investment

The site can be done yourself, order from professionals or buy a ready-made project. For the development of a profitable site, you need to follow its attendance and work on its increase. The level of income from advertising, affiliate programs and direct sales depends on this.

Tinkoff investment

Investment in Startap

Popular Russian banks have released special investment programs. So Tinkoff Bank opens up a brokerage account, which allows you to invest in different companies. For each transaction, the Bank charges the Commission. The Tinkoff investment service is available on the website and in a mobile application. User feedbacks show that for successful earnings in this system requires financial knowledge.

VTB investment

Tinkoff

In the VTB application of my investment, the client can buy and sell securities and currency, as well as other assets. Here the status of each operation and its financial result is monitored. It is convenient to keep track of changes in quotations.

Sberbank Investments

Service from Sberbank "Simple Investing" is fully automated. He conducts an assessment of risks and calculates benefits, and an investor at any time can take money from an electronic account. Deposters are conducted in international companies that do not depend on the economy of one country. The minimum entrance threshold is 100,000 rubles.

Where to get money for investment

It is not worth a loan for personal investment. Any investment is accompanied by risks. If the investment turns out to be losing, then the profit will not be, but the loan will remain.

If you still decided on credit, adequately appreciate your payments. Make sure you do not have to starve to make monthly payments to the bank.

The loan is attractive only to the fact that you get money immediately - you can start investing without having any savings. But in this case there is a risk of staying with a debt for interest, which will have to be given for several years.

Use only your funds. To start inverting, it is not necessary to have a big amount. You can start only with several thousand rubles.

  1. Investment goals For the purposes of investment, there are vary and one can allocate 3 main directions of money investment.
  2. Direct investments - This is the purchase of a large number of shares to receive a controlling package. For this you need a huge capital. Investor receives more than 50% of the company's shares and actually receives the right to control it.
  3. Portfolio . The purchase of shares of those enterprises, which develop and in the future should bring big profits. There is no purpose to get the enterprise itself, and the shares are bought only to earn money on increasing their prices.

The world of investing is too big to tell about him in one article, but I will try to convey the most important thing that you need to know. To begin with - a little theory.

Nefinasy

  • . These are long-term investments in material or intangible objects. Investors invest in equipment, patents and copyrights, licenses, innovative technologies, land plots.
  • In terms of terms, investments are divided into 3 types:
  • Short-term - up to 1 year;

Medium-term - from 1 to 3 years;

Long-term - more than 3 years.

In the nature of the investment facility there are real and financial. The first type includes investments of money in physical objects - real estate, equipment. Such operations are less risky - they are resistant to market changes and economic crisis. Often they are more profitable.

Financial investment is the purchase of securities. Promotions, shares, bonds, loans, options, indexes, futures are acting as instruments for profit. Here, the risk of losing invested funds.

Risks and profitability

  • The more the investor invests money, the bigger profit he receives in the event of a successful implementation of the project. But each such event is associated with a certain risk share. A person gives his money, but no one can guarantee him the return of these funds.
  • To minimize the degree of risk, you need to follow the rules:
  • Insert only free funds - money, the loss of which will not lead to the collapse.
  • Do not give in to emotions. In this case, knowledge, experience and mathematical calculations are important.
  • Check partners for licenses and certificates, it will help not run into fraudsters.
  • It is not recommended to invest all the money in one project. The distribution of funds in several directions reduces risks.
  • Create a financial reserve in case of unfavorable investment.

Sut out the embedded amount from the project, when the profit reaches a sufficient value.

Develop a business plan and follow him.

There are professionals who can at the first stage to help and protect against errors in investing. It is necessary to learn from them for competent investment management. If you follow these rules, the risk of money loss will be lower.

  • All pros and cons
  • Investments helped the current millionaires to achieve their financial position. Advantages of investment:
  • Financial independence.
  • Obtain passive income.
  • You can quickly get rich.

There are no restrictive factors - you can invest any amount in the project that you like.

Fighting inflation.

Lack of investment is to highly risk. This does not apply to deposits that bring up to 10% per year. The more seriously the potential profits, the higher the risk.

VTB Bank

findings

: Intellectual Literature, 2019. - ISBN 978-5-6042878-6-6.

Simple deposits do not require special knowledge and accessible to everyone. With securities worth being careful. You can learn the issue of inverting at special paid courses (just do not induce fraudsters). A lot of useful information in the books of famous investors, as well as in free access on the Internet.

Hello everyone, dear readers of the blog AFLife.RU! Most ordinary people have the word "investment" are associated with complex financial processes and big money. Partly this is true. Investing and indeed requires a serious approach and the availability of certain knowledge. But do not think that only people who have the exclusive talent of financial affairs can become an investor and receive solid profit. It is advantageous to manage your means and move them anyone, if it understands the whole essence of the process. Today we will tell about what investment is simple words and how to dispose of your money to make a profit. Investments are an investment and use of its material and intangible resources for their increase and profit. A visual example is an open deposit in the bank. Funds are saved and make a certain income daily. Its value depends on the deposit amount and interest rate. Also investments are the purchase of share in capital or package

Shares

  • In any company. The investor invests money in business and receives his dividends for it. At the same time, its invested means are stored as a certain asset. Separately, I want to allocate investments in your own professional skills and skills. Watching time and money for additional education, a person expects to receive a higher level of income in the future. It is believed that the only and ultimate goal of any investment is precisely profit. In fact, several main tasks can be distinguished:
  • Saving available resources . It would seem, do not touch money, hide away in the box and live quietly - the capital is reliably protected. But in fact, money even hidden in the most reliable place is not ceased to be exposed to significantly reducing their real cost - inflation. Only a year or two, and capital loses almost a third of his payment ability. A good example is the forgotten stacks, which no longer have almost no value through time. Therefore, investors are often invested in projects with minimal risks and a small return, but with a high level of reliability.
  • Receiving a profit . If there is an opportunity to put funds into business and increase them, then why not take advantage of it. Many investors prefer to receive a stable, albeit not the maximum income, but with less risks. It is important to understand that the more likely the opportunity to "break Kush", the greater the risk to turn.

Speculation

. In simple language, buy-sell. Earnings are the difference in price. These are most often not long-term projects and they carry large risks. It's not a fact that everything will be able to turn as it should be in a plus. But if you get intended, the earnings can be a significant amount.

Investments never suggest 100% guarantees of their payback and profit. They give only a chance. And the higher the projected yield of the project, the greater the risk. Therefore, investors need to be carefully studying and pre-assessing the investment object.

  • Real investment The object of investment is any material or intangible asset, which is planned to invest. The subject of investment is a legal or an individual, carrying out operations with the object of investments (funds, investors, management companies, etc.).
  • Financial investments There are many types of investments. They are classified for a number of signs. The most significant is an investment object, according to which investments are several species:
  • Speculative investments . Under this term is supposed to invest in something material. For example, buying real estate for renting or business share, the purchase of land, production equipment, special equipment for the provision of services, etc.
  • Venture investment . This group includes all processes associated with the investment in securities and the use of various financial instruments.

. Investment in a short-term project. In other words, buying an object with a view to resale and profit from the difference between the cost of acquisition and implementation.

VTB Bank

. This is an investment in modern, promising projects. Usually these are new scientific developments or startups. The result of such investments will be noticeable only through years, and may not appear at all. But if everything goes well, the income from investing will be huge.

What is the benefit of investment

  • Do not work and receive money - well, don't you dream? For some people, it turned into reality, and all due to passive income. This term is called cash receipts that do not depend on the daily activities of the recipient. Passive income includes interest on deposit, rent for temporary use of property (residential or non-residential premises, vehicles, equipment, etc.), dividends.
  • It is to get passive income, and in the future - material stability and independence, is the main advantage of investment. For the investment facility, nested funds also have advantages:
  • Real investment contributes to the development of an object and maintaining its relevant state. That is, investing money in production, the investor finances its upgrades or update (for example, the purchase of the latest equipment). And this leads to improved product quality.

Investing in securities, gold or currency allows you to maintain prices and status of the selected investment object.

  • Venture investment is a contribution to scientific development, makes it possible to scientists and further engage in its research, which in the future can bring significant benefits to people.
  • We see that financial investments give a lot of advantages for investment facilities. And now consider the points of dignity of investment for subjects:
  • gaining income, the size of which does not depend on the daily hikes to work;
  • financial stability and independence;

More free time, which can be spent on a family or for consideration of additional ways of financial investments;

The ability to increase your level of education and competence in investment issues.

Pros and cons investment

  • Often, people do not decide to invest in various schemes, fearing to burn and lose their blood. In the world of financial investments there is no place for fear, but also not worth rushing in the first project. It is important to approach the investment process competently and responsibly, and to begin with, learn all the pros and cons. Pros:
  • Obtain passive income With minimal labor costs from the investor, the main plus of any investment, as mentioned above.
  • The ability to realize yourself and your potential . Having a certain income and more free time, the investor can afford to engage in his favorite business. And thanks to the purposefulness and perseverance, necessary during financial operations, the chance to succeed in any sphere increases significantly.
  • Getting income from different sources . For most of the population, the main income is wages. Accordingly, with the loss of work, the person and his family begin to experience serious material difficulties. The investor can invest in different projects, creating several sources of income for itself. In case of loss of one of them, the rest remain. In this way, financial security is ensured.
  • Increased education and financial literacy . Naturally, to manage cash investments it is necessary to have certain knowledge. It stimulates self-education to increase its own potential. After all, even experienced investors always carefully study the object before investing in it.

No restrictions for maximum income

  • derived from investment. If you properly dispose of your capital, constantly work on its magnification and invest it into other projects, then the amount of income will constantly grow. And its maximum size will depend only on the desires and efforts of the investor. Pros from financial investments impressive, but for adequate assessment of the situation should be considered and cons:
  • It is necessary to have starting capital . To get a decent income, the sum of the initial investments should be quite solid. So, on its formation can leave a lot of time.
  • Any financial investments are a certain risk. . And with an increase in the estimated profitability of the object, it increases in proportion and the likelihood of obtaining a loss. Even the most reliable projects do not give a complete guarantee of reliability. In some moments, the investor risks only alleged profit, and in some of all its resources. But as they say, who does not risk, he does not drink champagne. To competently carry out investment,
  • Specific knowledge is required . Not everyone ended the financial faculty. And even those who finished, do not always fully understand the entire material passed. Therefore, a novice investor needs to master a huge amount of knowledge, carefully examine the experience of colleagues and objectively analyze the situation in the market.

Lack of warranty

obtaining income or its non-permanent character. Another feature of financial investments is that nobody can guarantee their permanent yield. And in the case, for example, with speculative investments, income for each project is one-time.

VTB Bank

Having studied all the pros and cons, a novice investor can decide for himself, whether he is ready to produce income. Do not immediately build pink castles, pushing the dark prospects to the side. The best forecast is objective. When conducting any financial operation, it is precisely the preparation of a subject: its knowledge base, stress resistance, understanding of the situation in the market and timely response to all changes, an adequate approach to the case.

  • How to invest money
  • If the investor is ready to invest money, then it remains as small: how to start? We offer step-by-step instructions in the investment process:
  • Evaluation of own financial situation. To begin with, it is necessary to sit down and fully analyze your material state. To do this, it is necessary to describe all sources of income, separating them to constant and variables. And then paint it all costs. It is best to increase the amount of expenses with the calculation of unforeseen spending. Next, it is necessary to evaluate all available assets (real estate, equipment, cars, special equipment, intangible assets, etc.), their profitability. And all existing liabilities (loans, debts or mandatory monthly contributions). Now you will learn your investment resource (the difference between income and expenses), as well as pure capital (the difference between assets and liabilities).
  • Creating a financial reserve. In case of an unexpected situation, it is better to have a certain amount in stock.
  • Description of the main objectives and objectives of investment. Investor must understand what he wants to achieve, for what time and how much is ready to spend on it.
  • Determination of the maximum permissible risk. It is better at the initial stages to determine how much an investor will be able to lose painlessly in case of failure.
  • Creating an investment strategy. The novice investor needs to determine for himself how much money he is ready to invest how he will do (at a time or periodically), which part of personal time is ready to spend, and which investment object is closest for it.
  • Development of a protective strategy. At this stage, the investor should provide all possible negative scenarios and prepare a strategy for exiting them in advance.

Selecting the attachment method. Here it should be determined, an investor independently will be engaged in a project or through intermediaries, as planning to make funds and receive your income.

Formation of the investment portfolio. At this stage, the final choice of the investment object and investment is taking place.

How to manage investments and increase profitability Invest money is only part of the case. It is necessary to competently manage your investment. It is important at the initial stages to conduct an investment assessment of the facility and in advance to determine the maximum amount of investments. This will make it possible to calculate the possible income and create a clear framework for which it is not necessary to overtake in terms of financial investments. In other words, it is necessary to calculate everything well to put on the animate amount, I would not have to seek the missing funds, and starting to receive income, not to be upset about its value. In order to learn the basics of investment and time management, I recommend the simulator game

TimeFlow: time-money

which is a Russian analogue of the world famous game Robert Kiyosaki - Cashflow.

  • It is necessary to evaluate possible risks in advance and consider the strategy to bypass them or minimize damage upon the occurrence of a dangerous situation. It is also necessary to carry out an analysis of the project both in the process of its development and launch and in the process of work. Permanent control will allow you to determine possible deviations from the plan and strategy on time, on time to react to them.
  • Correctly managing its own means, no investor misses the ability to increase their yield. This can be done as follows:
  • Constantly monitor the situation on the market for more profitable investments.

Modernize production to increase its productivity and improve product quality. The cost of this process will accumulate in the near future.

Do not remove the received income, but to let it in turnover. Best on other investment objects.

Investments are a contribution to the future. Each person with a sufficient desire can create at least a small investment resource and put it into the case. This investment can be both its own knowledge and skills and non-current assets or money. The most important thing is a competent approach, knowledge and dedication. : If you like our article, then share it on social networks and be sure to subscribe to blog updates so as not to miss a lot of interesting things!

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