Types of investments
The notion of «investment» is derived from the Latin investire - îáëà÷àòü. The phenomenon is linked to long-term investment of material resources in those or other projects, programmes, enterprise so as to obtain profits in the future. That is, the exchange of knowledge in the present time amounts to an undefined, superior starting, which will be received in the future. The person âêëàäûâàþùåå funds - investor.
There are many types of investment - private and industrial, public and foreign, intelligent, controlling and non-controlling, direct, indirect, etc.
The purpose of this article is a review of the financial instruments, which are suitable for individuals, interested in the growth of private capital.
1. Bank deposits - standard way of investments. Its popularity stems from the fact that the depositor does not necessarily have knowledge in the sphere of investments and do anything to increase profit. Simply select a Bank that kind of Deposit and wait for the expiration of that period. Many draws and that the rate is fixed. That is, there is no risk.
2. Mutual funds offer to buy investment units, that is, the proportion of shares of any enterprise or bonds. A set of securities belongs in this case, the team members. This is the best way of investing for beginner investors, since all decisions are made by experts. The more that the initial amount acceptable to a large audience of citizens, on average, 1 thousand. $. In order to increase their capital, does not necessarily have the starting amount with a lot of zeros. But, as is known, the percentage is calculated exactly to the amount available to the investor. But because of income the higher, the higher the initial figure.
3. Trust management is as follows: a natural person (investor) submits its securities or money in the hands of a legal entity (Manager)to make a profit. Naturally, a certain percentage of befits one who manages the assets. The difference between this type of investments from the previous one in that it is about the individual, not collective management of funds.
4. United Fund of banking management, is a form of asset management, which implies that managing in the face of a credit organization is engaged in the property are several founders.
5. Credit unions are a very common type of investment. The scheme is the same as in the case of Bank deposits. But you can get a higher income. However the risks are high. In this case, success depends on the literacy of the workers, engaged in investment operations.
6. Non-governmental pension funds (NPF) - this organization, offering customers the opportunity to save a good sum of money to ensure a decent old age. The size of the fee can be any. As well as the frequency. The role of such funds is reduced to the management of pension assets.
7. An independent trade stocks, bonds, options - not the easiest option. Because it requires a certain knowledge and skills of the investor. But the yield is much higher than, for example, in the case of the mutual Fund or Bank-managed mutual funds.
8. Investments in real estate someone calls the most profitable, referring to the ever-increasing amount of square meters, and someone said that the high level of risk. And those other rights. It all depends on the General state of the economy of the country.
Here is an example. The physical person has acquired a one-room apartment in Moscow with the area of fifty square meters for one thousand dollars for each. The size of the investment, thus, " fifty thousand dollars. It is situated in the immediate proximity to a metro station, far from major roads and railway tracks. Investment agreement was signed at the first stage of construction of the residential house. In a year the owner has received all of the documents, which proved the right of ownership. A year later, house prices have increased. So, a square metre has risen to thirty-five per cent, which is 1 350 dollars. The investor made a decision on sale of the apartment and has taken advantage of service of the Agency on the issues of purchase and sale of real estate. A little more than a month has been found, the buyer and the seller has received sixty-seven and a half thousand dollars. Of these, two percent - 1 $ 350 - was paid to the Agency. Income - 16 150 dollars. Income tax - thirteen per cent was 2 100 dollars. That is, the net profit is in this case twenty-eight per cent or 14 050 dollars.
9. Venture capital investments involve capital investment in the development of the new enterprise, company or project, which is unique and interesting, not having analogues. Up to the moment, when the level of liquidity becomes clear, the percentage of risk remains high. In fact, this is a chance to get a huge profit, at the risk of losing all the money invested. This kind of investment is called indirect, because the funds are invested in intangible values - scientific development, training, etc.
And there is another name of this method of investing smart investing. The largest revenue, as world experience shows, brings investing in education - universities, academies. In spite of the fact that the share of private investors in this case the small - not more than five per cent of them, in the end, receive a good percentage of the profits.
10. An investment in a business it is a chance to earn money for the winners of money and ideas. These people need only to find each other and to formalize the cooperation. However, the investor should be aware of in the area in which he plans to invest the money. It is a direct way of investment, which gives the investor the ability to control the selected area of activity.
To engage in investment operations can be not only in the country, but also abroad. Foreign investment is an equity participation in the establishment of enterprises, the opening of a branch of a foreign company, purchase of securities, buildings, equipment, land plots. This is all kinds of intellectual and material values, which foreign investors invest in those or other objects and kinds of activity in order to generate income. In addition to government sources attract private. That is, individuals can provide foreign company capital for a short, medium or long term.
There is also an alternative investment. The acquisition of Antiques and various art objects (including - decorative-applied). As a rule, investors tend to spend no more than 5-6 thousand dollars for a picture or a statue, in order to subsequently increase their income. The main thing in this question - guess what will be in fashion later.
Money invested and in winemaking. For example, wines from Bordeaux - this is the most expensive product in this case. Buy rare variety can only be at the auction. However, if re-sell it in the near time, the percentage will be low.
To the field of alternative investments also include the purchase of precious metals, platinum coins and numismatics.
Thus, there are many types of investment funds, each of which has its own level of profitability, risk and a set of necessary knowledge. Choose the appropriate should be based on the amount of initial capital, personal expectations and the degree of interest in this process.
