Investing - is the process of investment (capital) in order to obtain benefits in the form of profits.Is it safe to invest?It's safe to say difficult to compare them with credit.
comparing lending
difference of investment lending is that in the latter case, we know that money back to us with a certain percentage of on time, but on investment, we can not say so.The fact that it is a risky activity, profit depends on the success of a project, in the case of a failed investment full or partial loss of the invested capital.
Investing - what is it?
Let's think logically, what you need to do in order to make money.A lot for this purpose find work there and spend the time and effort to obtain wage.In this situation, how to proceed in order to obtain more?It is logical that for this purpose will have to work harder (qualitatively or quantitatively).So much time is spent on the job, and human forces always has a limit.If you constantly work, there will be no time to rest, and to improve their financial condition will cease to have meaning.In this situation, come to the aid of the investment.What a great way to get to work on funds, and not vice versa, this is simply no doubt about it.Tell the truth, laziness - the engine of progress.Most do not need a lot of hard work.As long as you do your household chores, lying to a law of physics that states that one body can not be in two places at the same time, still can make, however, it is not you, as "deputy" - invested capital.Few understood the value of the word "investment."What is it, now we know, because we can pay attention to the main point, namely, - where, in fact, to invest.
Types
Invest investment funds need to something.In the world a lot of options, where people invest savings.Now popular funds, bonds, stocks, a very profitable investment in real estate.This is only a small part of where you can invest.And if you are good in some ways are good, then the option can become a remarkable investment in the business.It is not where you will invest, as long as it was profitable.Money should work for you.
Shares
action - kind of securities certifying the right to a share of its owner (shareholder) in the ownership of the company and gives the ability to manage it and to receive dividends (income).
Bonds
captures Bond debt to the owner of the paper.The holder of the bond, unlike the shareholder does not control the company and does not have the right to receive dividends from its profits.Owners of such securities shall be paid interest income, and at the end of her treatment or at maturity the nominal value of issued.
comparing risks
Stocks are riskier investment than bonds, since the dividends depend only on the successful development of the company.Bonds are secured by the assets and property of the enterprise.
Investment funds
For easier understanding of the subject will present the funds in the form of bags of money, which is filled by legal entities or individuals.Investment capital transferred in trust management of the bank, which manages the process of investing in bonds or stocks.Themselves investors can not invest directly because of the complexity of the work and the high cost of the procedure of sale.It should be noted that it is more long-term deposits, despite the fact that the investor can withdraw money at any time.Gains usually you will get no earlier than 2 years, and do not forget that this is a risky business, and as a result can and do lose their savings.
Should I invest in the business?
In order to answer the question, you need to understand that investing in a business, you get a certain percentage of its profits.Also worth noting is that you can invest in your and in someone else's business.Thus, even if you have no ideas for starting a business, you can invest in someone else's.Money can be invested as already in business, and to invest in business projects.This so-called start-ups.Funds invested in such projects - a venture capital investment.What it is?So called funds that invest in risky projects, young, typically banks refuse to work with them, because private investors are involved.Typically, the process is characterized by long-term investment in the company.Acquisition of income may also be different.Some investors receive only passive income (interest on profits), others - active (directly managed by the business).Do not worry if you do not have the full amount for the contribution to the business, because you can not give 100%, and for example, 20-30%, and to join other investors (equity).Generally, 100% business investment - a very risky business, it is much safer to share.Business investment have both a number of advantages and disadvantages.
Benefits
- set of forms and types of businesses in which you can invest.
- There are projects that do not require a lot of money, as well as equity.
- understandable and accessible to almost everyone.
- tangible assets tangibility of money invested.
- can participate personally in the construction business, to know exactly where and how money is spent.Ability to control investments.
- Unlimited returns.
Disadvantages
- risk of loss of capital if the business "burned."
- constantly have to watch that you do not violate the law.
- possible disagreements with partners (for shared construction business).
- is necessary to understand the specifics of the case, which has invested.
- When you invest in a startup, most likely, will not profit directly.That is, this type of investment can be attributed to long-term.
Estate
This is probably one of the safest types of investments.Vehicles never falls in value every year it only becomes more expensive.Real estate investments have a significant disadvantage, which is that there should be at once an impressive start-up capital.But now you can find another way out of this situation, for example, to take a mortgage loan for the construction or, rather, after the apartment will be built, its cost will rise in price.Also advantageous is the construction and resale garages.Do not forget to take into account the specifics of the market is in your area.You can also rent both housing and garages.In this case, to consider the location of the object, and this will depend on incomes.If you decide to invest money is in this kind of investment, carefully examine the legislation, it will help when deciding on the profitability of the project.Investments in real estate - the best kind of investment funds.
hope that article has helped a little bit to understand the complex world of investments, and most importantly, made it clear that they can be a means to generate additional and sometimes basic earnings.No matter what type of investment choose for themselves, most importantly, learn how to make money work for you, not vice versa.Fortunately, reliable and profitable investment.
