Investments in securities. How to determine the choice of investments.
Investments in securities can be divided into direct and portfolio investments. Both have their pros and cons depending on the kind of the securities industry, a separate company and the amount of funds allocated for implementation of the investment strategy. What to choose - direct investments, or investments?
Direct investments generally have low liquidity and closeness, as a result of investments depends on the professionalism of the managers of market conditions, the state of Affairs on the market, a policy, economy and other factors. If you take into account that the investor is able to only affect a small portion of these factors, the obvious conclusion about the low efficiency of investment in a given way.
What to choose - portfolio investments, or investments in securities?
What is a portfolio investments, investments in securities, and investment strategy may involve higher ramification of the instruments: stocks, bonds, promissory notes, deposits, mutual funds real estate, CLN, CDS, NDF, futures, options and other. But investments in securities are the most promising from the financial point of view. It is no wonder that the richest man in the world, Warren Buffett, as well as most of the leading financiers of wall street deal with it is an investment in the securities.
Let's consider the short-term and long-term investments.
Temporary subspecies of securities may be:
the short - term,
- mid-term,
- long-term.
- Short-term investments in securities - are the most risky, are legitimate speculation in the market. Speculation shares in the case of short-term investments - a kind of sport that requires a good reaction, high speed of decision-making, and in no small degree depends on luck. Of course, short-term investments in securities can be very profitable and even super-profitable. But all the same, and the risk faced by the investor, in the case of short-term investments in securities is big enough if not to say more.
- Medium-term as the investments in securities - are intermediate in characteristics with all the ensuing consequences. As a rule, to the medium-term investments in securities resort investors, does not possess serious resources and have enough sober mind in order not to chase the super profits, respectively. In terms of the yield of medium-term investments in securities issued represent also something average between сверхприбыльными short-term and less profitable long-term investment plans as you have already guessed.
- Long-term investments in the securities of the most stable and more predictable in its essence. Such investments in securities allow an investor for a long period of time not only to preserve, but also to increase the invested funds, focusing on the individual approach by category. The complex structure of investments is the way to the demands of any of the exacting investor on the way to achieving this goal.
