For all the people always important was the question: "How to maintain and increase the money?".If a person wants to earn the maximum, to provide for themselves and their children a future, it is necessary to look for the answer to this question.And once a seeker will come across the word "investment."It is this way of augmenting their promises savings.But what to do with it?Investing - what is this?
Tools
Investing - is investing for profit.There are many different tools to accomplish this.What it is?Tools for this process as investing - it's where you can invest money in order to obtain income.Any other attachments (without intent to receive income) - is philanthropy or charity.Investing - is any kind of investing money, which provides an opportunity to increase the amount embedded in the short (or long - it all depends on the strategy and the needs of the individual investor) term.It becomes clear that the tools for this process can be very different - from a mere speculation on the purchase / sale to financial participation in major projects for the construction or development of oil fields that involve substantial dividends subject to successful implementation.Naturally, in view of the widest diversity, there is a classification.
types of investments
1) real investment - is investing in manufacturing (industry, construction, agriculture).Also under this type of fall and some intangible assets (copyrights, patents), which can be used for the needs of production.
2) Smart investment - an investment in training, education, science and so on.Also under this type of fall and some intangible assets (copyrights, patents) which can be applied to intellectual needs.
3) Financial investments - is the purchase of securities investment on deposit and so on.
most common investment instruments
The economic literature is possible to find ways to invest:
1) deposit (bank deposit);
2) pension savings and insurance programs;
3) securities (bonds, stocks, options, vouchers and so on);
4) structured banking products;
5) mutual funds (mutual funds);
6) shares of the various exchange-traded funds;
7) investments in hedge funds;
8) investment in precious metals (silver, gold, platinum);
9) the purchase or construction of real estate;
10) Alternative Investments - antiques, art, collecting, gems and more.
also need to understand that "the investment object" - is all of the above (or as something concrete from the list).With the proliferation of Internet passive income it became available to the masses.Online investing - it is an opportunity with the help of a worldwide network to perform operations that are associated with all the tools through online banking (money exchange, putting money on deposit, the purchase of units or shares, and so on).If you have a large starting capital, you can start the development of the Internet business.It is necessary to clarify that all of the above real investment - is the kind of investments that requires the maximum amount of funds and often huge capital injections, which is why it is much less accessible.
risks
Investing - is always a risk.Any tool is characterized in the first place by this indicator, as well as their profitability.There are three types of investments:
- low risk;
- sredneriskovye;
- high risk.
between risk and return there is a relationship: the higher the likely profit, the risky investments.It is the ratio of these two criteria, and determines the investment strategy.It is necessary to consider all types of detail.
low-risk instruments with low risk actually provide a guaranteed income.Interest conditionally comparable to the yield on bank deposits.This group may include savings and insurance programs, government bonds and bills.It can be seen that the yield of these instruments is virtually guaranteed, and all the invested capital can be fully refunded back to the investor.The only risk - the refusal of the state or the insurance company to meet its obligations.
Sredneriskovye
in this category include:
- deposits in commercial banks;
- bills and bonds of commercial banks;
- units of various funds (bonds, real estate funds);
- renting the property.
tools in this group are some risks (up to fifty per cent), and in some cases can reach even up to the complete loss of all capital.Usually such grandiose economic stress provoke global crises.High-risk
Here yield has in fact no limits and can reach amazing percent.This type includes shares, own business, trade, commodities and currency trading, shares of index funds and equity funds.This type of investment - it is always a serious risk, but also a large profit.In large proportion of the portfolios of such instruments usually does not exceed 1-15%.Risky investment object - this is the casino, where luck often plays a very important role, because the math is too heavily dependent on the mass of probabilities.
Investment process Investment process - a set direction of movement of various financial flows of various levels and forms.To do this, there are a number of conditions: the availability of sufficient resources potential, capable of making progress in the right scale economic actors.In this mechanism, the object of investment - this is what transformed the investment resources.Such a process - a set of actions aimed at attracting savings of individuals and entities for their use through recycling and conversion of the share capital for a certain profit.This involves essentially only two parties: the company, the applicant directly by the investor.
Management investment process
It is necessary to monitor the economic climate of individual regions and enterprises;evaluate the investment climate sectors and industries;develop strategies for investment companies;to carry out economic and financial market regulation and exchanges;assess the impact of the flow of investment to the company.Real investment - is the most labor-intensive process, so there are isolated points and stages of the investment process as:
- motivation for investment;
- the existence of the program of development and support of the objectives;
- to develop a strategy and investment plan;
- availability of stable financial support;
- insurance;
- software sector real investment all the necessary technical and material resources;
-regulirovanie and monitoring of the investment process;
-assessment results and further planning.
financial asset
Investing - a collection of different types of investments.Financial assets - one of the most accessible to date.Bank deposit is a savings and investment activity, and has minimal risk.However, inflation is extremely negative impact on such investments.This means that a bank deposit is not even middle-income instrument, and his entire essence is merely to preserve resources.The remaining financial assets are not warranties, so the evaluation of a much more sophisticated and complex, as it requires the presence of a fairly deep knowledge in a particular area.
Tangible assets
«Income" capital investment - an investment in precious metals and other types.Naturally, the yield here is significantly higher than that of deposits.Gold over the past decades and fell, and significantly increased in price, but its growth has been very unstable.Investing in precious metals is possible through futures contracts, invoices and other metal.Also here can be attributed and real estate.
currency and stock market
main advantages of these types of investments is the ability to make investments in the presence of minimum amounts, in fact, the possibility of instant input and output means.The main disadvantage is possible to name the highest risk of losing part or all of your investment.Especially those "sin" Forex market, which is not regulated at the legislative level, and brokers choose to register solely in the offshore.
