Investments - cash, securities, other property, including property rights, other rights that have a monetary value, invested in objects of entrepreneurial activity and (or) other activities in order to make a profit.
Investor - a person placing capital for the purpose of subsequent profit.
The conditions for doing business in a particular country have a great influence on the amount of investment. The most important indicators of a favorable investment climate are guarantees of respect for property rights, predictability and stability of the business environment.
INVESTOR'S DICTIONARY / TERMS IN THE INVESTMENT SPHERE
An investment portfolio is a set of valuable assets in which an investor invests in order to make a profit. They are united by one thing - this is an investment in which profit will come with a certain degree of probability.
Venture capital investments are investments designed to fund new startups. As a rule, this is a long-term investment in a company, made in exchange for a share (shares) of this company, in anticipation of a return for the investor above the average market level.
Reinvestment is the reuse of capital for investment purposes, subject to its preliminary release in the process of implementing previously selected investment projects.
The stock exchange is a financial institution that ensures the regular functioning of the securities market.
An investment fund is a collective investment institution.
A hedge fund is one of the types of financial institutions whose activities are built on the principle of organizing a traditional investment fund, only with more opportunities for behavior when trading in the economic market.
Diversification is a conscious selection of combinations of investment projects when not only their diversity is achieved, but a certain interdependence of income dynamics and an acceptable level of riskiness.
A share is an equity security that secures the rights of its owner-shareholder to receive part of the profit of a joint-stock company in the form of dividends, to participate in the management of the joint-stock company, and to a part of property.
A trader is a person who trades on the stock exchange. They are divided into investors - buyers who believe in the growth of assets and accordingly buy assets. And a speculator is a person who does not adhere to any one strategy.
Profit is a fixed profit.
A trend is the direction of the chart movement, price movement within a certain range. They can rise, fall, or be neutral. Based on this, the following types of trend are distinguished.
A speculator is a trader, but in an outdated version. Speculators buy something at a lower price and sell at a higher price. We can say that a trader is a modern speculator.
If you are not particularly versed in a particular investment object, invest time and money in your knowledge! This will be your most profitable investment!
GOLDEN RULES FOR A SUCCESSFUL INVESTOR
1. The most important thing that is most relevant in our time, as in the well-known saying "Do not put all your eggs in one basket"
It is not recommended to invest all funds in one enterprise, since there is a certain risk of losing them. But if you combine the profitable and dangerous with the safe and low-profit, then the result is a good and effective investor portfolio.
2. Explore the types of investments
Before starting your investment activity, be sure to study the possibilities of different investments: what types, profitability, risks and investment availability exist. It won't take you a lot of time, but you will have an idea of the prospects for income in a particular activity and will be able to choose the most suitable ones for yourself.
3. Trust your money only to professionals
Now there are many companies that are promising huge returns. Basically, all these are HYIPs. Usually, having collected a certain amount of money, the company safely disappears. Therefore, use the services of reputable financial institutions.
4. Don't invest the latter
Everything is simple here, you must have an emergency supply of money for unforeseen circumstances. Without this reserve, you may urgently need money, and you will have to withdraw it from the invested funds. Well, if you do not lose anything, at best you will take them without loss. And all your efforts, when you have been saving, saving and investing for a long time, will go down the drain. It is better to immediately anticipate such unforeseen situations and prepare yourself a "financial safety cushion".
5. Choose an acceptable ratio of the level of risk and reward
There is such a rule here. The higher the risk, the higher the rate of return, and vice versa. Decide for yourself whether you are ready to accept the risk of losing everything in exchange for increased profitability. Or you will feel more confident when your money is safe, but with a low yield. Simply put - are you ready to receive an increased level of income in a short time, or a small one, but for a long time. Again, we choose the "golden mean".
6. Invest only your own money
Here, of course, this rule applies only to beginners. Professionals, on the contrary, always use borrowed funds. This way they can make a lot more profit. But they have experience on their side, which cannot be said about beginners. Indeed, in the absence of proper experience and excessive enthusiasm for risks in order to obtain increased income, beginners can very easily lose everything. And besides, there will still have to be. Such a burden of responsibility is very strong psychologically and does not allow much to turn around.
7. Mandatory presence of a goal and strategy
To achieve results, be sure to set goals so that there is something to strive for. The strategy helps in achieving these goals. After all, what is a strategy? Step-by-step execution of certain actions over a given period of time.
ASSESSMENT OF RETURN ON INVESTMENT
An investor for whom the issue of expanding his existing business is a priority, when considering the option of investing capital, sets himself the task of obtaining the desired income as much as possible. As a rule, for these purposes it is customary to use the minimum standard of necessary calculations, relying on the main factors on which the very idea of investing is based.
1. Time is the main factor in the value of any asset in the context of the technological, financial or social cycle. Speaking more In simple terms, every asset, be it a plant, a package of government bonds or gold bars, has its own periods of growth and decline in value. There are no ever-growing or ever-undervalued assets. Given this moment, the investor either invests in something that will be in demand (and, accordingly, increase in price) or something that has already served its time and will no longer be of interest to anyone in the near or distant future.
2. Rate of return as a value that determines the rate of return on which the investor agrees to spend money now in order to get it in the future. In many ways, the existing analytical tools and methods give quite acceptable results for predicting profitability, but provided that all economic and financial data are strictly linear, not subject to random fluctuations (market volatility) and operate in strict proportion to each other.
However, we must admit that this happens only in ideal cases and for short periods of time. There are quite frequent examples when a properly calculated project worth billions fails simply because a new product or technology has entered the market that “kills” all the competitiveness of a correctly calculated investment.
3. Risk. If there was no risk, then everyone would be rich or vice versa. Risk is a necessary element when considering any investment project.
Investing is a risky way to make money. Even if you don’t choose HYIPs as an object of investment, which bear a huge risk, but invest in a completely legal business, then at any time there may be an unforeseen situation and the funds will be lost. The reasons for this are the most commonplace, but sometimes the most unpredictable turns of events happen in life and the reliability of seemingly safe transactions turns out to be fragile and temporary. The modern classification of investment risks includes aggressive, conservative types of investments. As a rule, investors resort to risk diversification, distributing funds for different projects.
PROSPECTIVE DIRECTIONS FOR INVESTMENT
1. BUSINESS ON PARTNER PROGRAMS
One of the most lucrative ways of investing, which can bring you up to thousands of% of income, but this business requires participation in the work process. Although it can be automated or simply invested in someone else's business at the development stage. Alternatively, you can buy a ready-made business or open a franchise business.
It is possible to organize work even with an insignificant start-up capital. Money is not the most important thing here, the main thing is desire and aspiration. If we turn to statistics, then among millionaires about 70-80% are entrepreneurs who started from scratch.
Nowadays, goods from China are very popular, where the margin can reach up to 500-3000%. Such products are successfully sold over the Internet. In the case of both wholesale and retail sales, the goods do not need to be in stock - you can work under the dropshipping scheme. The main thing is to find clients. In short, the essence of dropshipping is that you work with a supplier who ships the product directly to the customer. He sells his goods and from this he has income, and you get your markup on the sale.
CONCLUSION: Business is able to bring very high profitability with minimal investment.
2. TRUST FUNDS
Trust funds are professionally engaged in investment activities, investing and managing the money of their investors (they invest in certain stocks, promising companies and other assets).
Absolutely any person can become a depositor, for this you need to make an investment determined by the company. Depending on whether the fund successfully manages the investment, investors receive a profit or loss. The activities of such funds are regulated at the state level. Therefore, they are considered more secure.
Trust management usually gives a low return, with little risk. You can invest online, including through banks. If this type of investment is suitable for you, then it makes sense to minimize risks and distribute investments among several funds. And before investing anywhere, read the reviews of people on the Internet, and also read what they write about them on the forums. With such a simple action, you will protect yourself from unreliable and fraudulent organizations.
OUTPUT: In the absence of a crisis, they bring good returns.
3. MICROFINANCE ORGANIZATIONS
The return on such investments on average ranges from 12% to 30% per annum. The minimum amount required to invest in an MFO must be at least 1.5 million rubles (by law). The longer the investment period, the higher the interest rate.
It should be noted that in this case there is no deposit insurance, and in general the risks are much greater than if you invest in bonds or in a bank at interest. If you nevertheless decide to invest in an MFI, then be sure to choose a trusted company.
Look primarily at the “age” of the MFI, not the interest rate that you are promised. After all, it is better to invest in a reliable organization at a slightly lower interest rate than in a newly emerging MFI with a high interest rate. Additionally, it will not be superfluous to look at reviews and read articles on well-known information portals ..
CONCLUSION: MFOs as a whole give 1.5-2 times more profitability than bank deposits. But at the same time, there are corresponding risks.
4. CRYPTOCURRENCY / BITCOIN
Bitcoin is the currency of the future, which has already arrived. Already there are billionaires who have become rich solely by investing in bitcoin.
Some experts say that in the future, bitcoin can cost hundreds of thousands and even possibly reach $ 1 million. Others argue that Bitcoin will crash. Despite this, some states are exploring options for creating their own national cryptocurrency, which suggests that the topic of cryptocurrencies will be very popular, which means bitcoin will grow in price. Moreover, while cryptocurrencies are showing a steady growing trend.
You need to understand that any cryptocurrency is a rather risky investment tool. For example, Bitcoin can rise or fall by 10-25% in just a day. And in a year, you can both increase your investments 10 times, and almost lose everything.
CONCLUSION: On the one hand, cryptocurrencies are too risky a tool, but on the other hand, if they grow, they can bring huge returns.
5. INTERNET PROJECTS / ONLINE BUSINESS
The Internet is developing at a tremendous pace, at the same time providing an opportunity for each of us to make money in this global network. It is important to note that large investments are not always required to promote a particular project on the Internet.
At the moment, investments in the following areas are very profitable:
1. Information sites. With minimal investment and the creation of unique content, it is possible to get high profitability through advertising. Usually, the site starts to bring the first income in 4-6 months. How much income you get depends on the topic of the site. In the beginning, you will need to delve into and understand the key details of such a business.
2. Social publics. The owners of such public pages earn mainly from the publication of advertising posts. Public pages pay off very quickly with a relatively small investment. Although now there is very high competition, but if you choose the right topic, post quality content and engage in public, then you won't have to wait long for success.
6. VENTURE FUNDS
Venture funds are a fairly profitable investment tool. The essence of venture funds is that they invest money exclusively in projects that are at the stage of development (startup) or even at the stage of idea. A distinctive feature of venture capital investments is a very, very high profitability, they can bring thousands of percent.
But on the other hand, only 1-2 out of 10 projects shoot out and bring huge profits. But despite this, they usually more than pay off all investments in "unsuccessful" projects. There are basically several ways to invest in projects:
crowdfunding platforms (suitable for beginners);
venture funds;
investor clubs.
CONCLUSION: Yet venture capital investment is underdeveloped in Russia. And often a lot of start-up capital is required. Meanwhile, venture capital investments are capable of generating very high returns.
My personal opinion is that in our time of rapid development of e-commerce, the most profitable investments will be investments in official Internet companies, and the direction of these companies can be completely different. The most important thing to pay attention to is the marketing of the company, the availability of official documents and the interest of people in this project. For me, the most important thing in such companies is the presence of a well-founded affiliate program, because it is this program that gives good passive income over time. The most important thing is to distribute your investments among several companies and never get hung up on one, no matter how good a profit it brings. Having formed a good investment portfolio from a large number of companies, you actually cannot go into the red.