Investments by investment objects are classified. Investments

Few people know, but investments are not always connected specifically with money, because investments can be considered any kind of investment - funds, health, strength, time - in an object or process that after some time will bring a certain positive result.

If you look at investing in general, then each of us is an investor - we invest our strength and money in children, education, self-improvement, our future, and all this will bring at least some benefit to us. In this article, we will not consider investing in the broad sense of the word, but will reveal only the material aspect of this phenomenon. So, read on, what is investment in simple terms and examples of work collected from personal experience.

The financial illiteracy of the majority of the townsfolk and the prevalence of American films about the cool businessmen from Wall Street have formed in the minds of most people the idea that investing is a path for very rich people or a business that big people are engaged in. investment companies. In fact, this is not so, and you can become an investor, having a very small amounts enough money to invest in the Internet. To understand who is available for investment activity, you should first understand what it is.

Investment is the investment in material and intangible assets for a period of time in order to make a profit.

The word "investment" refers to both the commercial process of investing funds, and directly those material goods that are invested and make a profit. It is worth noting that investing is not only a way to earn money, but also a way to store funds, because if you just put money under the mattress, not only will they not be able to multiply in any way, but they will also depreciate over a certain period of time due to inflation and devaluation.

Thus, we figured out that investment is a rather broad concept, which implies not only a form of income for banks, large businessmen and businessmen who already have money - chickens do not peck. Each of us can also become an investor - you just need to find the right investment options for you.

Types of investments - classification

If you think that investments for ordinary citizens begin and end with a deposit in banks, then you are deeply mistaken. There are a huge number of organizations, objects, subjects and schemes that allow you to earn on your own money. Moreover, there is a whole classification of investments according to various criteria, which we will consider below.

By investment objects

Anything that can generate income in the long run can become an investment object. Depending on the category of this same object, there are types of investments, which you will learn about below.

Real investment

Purchase of tangible and intangible objects that constitute capital in different forms: acquisition of an already operating business (investment in a business), land, funds, patents, rights to own something. Such acquisitions, unlike ordinary purchases, can generate income in the future. Investing in real objects has minimal risks that the invested funds will not return back.

financial investments

They are an investment of money in various investment instruments that will bring profit. This category includes PAMM accounts, HYIPs, purchase valuable papers, mutual funds. The risk of losing your hard-earned money is very high, such investment instruments cannot guarantee 100% that you will be able to make a profit.

Speculative investment

This type of investment works on the principle of "find cheaper and sell more expensive", that is, it is pure water speculation. The most popular type of investment in speculative instruments is buying a currency during a fall in the exchange rate and selling it when it rises. In addition to foreign exchange transactions, this type of investment includes the acquisition of precious metals, shares for the purpose of resale and bonds.

Venture investments

Investing in new enterprises and startups that have just launched and have the prospect of future earnings. This is an extremely risky type of income from investments, as it is an investment in innovative business, projects that have no analogues. At the same time, the investor cannot know for sure whether the investment platform will “shoot” or not. In the same time, venture investments can bring a very large income if the idea on which the business is based will be fully implemented and will be of interest to the consumer.

Special purpose

You can invest in anything - both in material objects, and in your own education or health. Depending on the purpose of investment, three types of investments are distinguished, which are described below.

Direct investments

If an investor invests directly in material objects or production, then such an investment is called direct investment. At the same time, if there is any company receiving an investment, then the investor receives a share in its authorized capital.

Non-financial investments

You can invest not only in a direct object that has a material embodiment, but also a document that has legal force, which a priori will be beneficial. Non-financial investments include investing in projects of licenses, rights, equipment, etc.

Portfolio investment

The last type of investment by purpose involves investing in securities. They represent investment portfolio shares or bonds of any company and do not require active management from the investor - he simply receives a profit, stipulated by the conditions of investing money. Investments in shares can be both very profitable and not bring any profit - it is important at the initial stage of investment to determine the prospects for such an investment.

Type of ownership

Depending on who is the investor and contributes funds to the investment object, there are types of investments according to the form of ownership. A separate distinction is made between investments made by the state, a company, an individual, a representative of another country, as well as a mixed type, when several different investors are present at the same time.

State form

Under the state form, the investor acts government agency or executive with funds from the state treasury. This form includes both nationwide persons and structures, as well as investors of local significance. Where can the government invest? There are many examples: from investing in improving the environmental situation in a certain region and repairing roads to patronizing culture and developing the spiritual level of the population.

private form

Everything is simple here, if an individual investor makes an investment somewhere for personal purposes, then we have a private form of investment. Most often, private investors invest in order to increase them and pursue only material benefit. In this case, only personal investments and finances are used.

Foreign / Foreign

Often the investors are citizens, companies and state structures another country - this practice is quite common due to the fact that in different regions of the world there are different conditions for doing business. If the investor sees great prospects than in his own country, then nothing prevents him from foreign investment.

Investment term

When investing funds, as a rule, the period during which the deposit will work is agreed in advance. The only exceptions are such types of investment as speculative, for example, the purchase of currency and its further resale, which will be carried out under favorable conditions - it is not known whether a year, a month, or 24 hours will pass.

Long term

Pursuing the maximum profit, the investor can say goodbye to his funds for a long period of time, which is more than 5 years. This type of investment is called long-term and it is usually the most profitable investment. More often long term investment there are large investments in construction, the development of something, the development of a new business area, which a priori should be very profitable and worth the wait.

medium-term

In the event that the duration of the investment is determined to be shorter than 5 years, then they speak of medium-term investments. As a rule, an investment fund, project or direction with such a validity period has average profitability.

Short term

To be an investor, it is not necessary to wait for the return of your funds and profits until old age, waiting for their return in 5-10 years. There are a lot of short-term offers that promise earnings for a period of time no more than a year. Take, for example, even bank deposits - each client of the bank can invest funds and receive them in six months or a year with a small premium in the form of interest on the deposit. At the same time, if the profit from investment comes periodically, although the investment period can be long, then this type of investment is called annuity.

Investment risks

Investing is a risky way to make money. Even if you do not choose HYIP or PAMM as an investment object, which carry a huge risk, but invest in a completely legal business, then any unforeseen situation may arise at any time and funds will be lost. The reasons why an investment does not work out are as banal as the world, 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 risks in investing includes aggressive, moderate conservative types of investments. As a rule, investors resort to risk diversification by distributing funds among projects with different riskiness.

Aggressive

The investor wants to get the maximum profit and at the same time is not averse to taking risks. He chooses an aggressive investment model, in which the shortest, riskiest and most profitable method is chosen.

Moderate

In the event that the investor does not want to lose his money, but there is also a desire to earn more, he will choose golden mean- an investment object that contains these two indicators in the optimal ratio.

Conservative

The most cautious investors choose conservative types of investments that minimize the risk of losing money. In this case, as a rule, for a long period you can get a small profit, but the capital is completely safe.

and while they can be "transformed" into material objects and services, because investments are, on the one hand, the ability to store money and increase it (if we take into account investments with almost zero risk). The question of where to invest money in order to get the desired profit from them is also relevant - fortunately, there are plenty of ways to make money make money.

Investments in gold and precious metals

Since ancient times, precious metals have had value, which is still observed today. Therefore, it is not surprising that many investors choose gold and other precious metals as an investment object. But such an investment has both its pros and cons. Firstly, the price of gold depends on many factors and it is currently difficult to say what can affect its price. Secondly, the cost of gold, if it increases, is insignificant, and most investors consider this kind of investment as the storage of their funds, which can be terminated at any time and exchanged for real money. From the point of view of multiplying funds, calling gold is very profitable investment instrument is not possible, so if you look at the return on investment, it is better to look for a better option.

Real estate investment

In today's changing world, when it is difficult to find stability, investors are increasingly looking for the most reliable ways to invest. Real estate is one such stable investment. In addition, this type of investment is liquid, residential and non-residential premises will always grow in price and be in demand by consumers. At the same time, the investor is faced with the task of being able to navigate the flow of information and understand well the essence of the sphere that he has chosen to earn money. When choosing to invest in real estate, it is important to take into account not only the geographical location, prospects, quality of the property in which it is planned to invest, but also take into account multiple factors that will affect the pricing of the structure in the future, and indeed its integrity and safety. So, one cannot buy a house in the country and expect that one can make good money on this investment in the future.

Internet investment

The Internet has become so tightly integrated into our lives that absolutely all spheres of human life have migrated to this virtual space. It goes without saying that they have found a place for themselves and investments on the Internet. Wherein this species investment has a large number of directions, some of them even operate outside the law. The most common online investment objects are:

Forex trading, stock market;
PAMM accounts;
HYIPs and various trust funds (this also includes the MLM investment fund and other quick investments with considerable risk);
Bitcoin investment and investment in other cryptocurrencies.

In addition to such specific types of investments in the network, more prosaic ones can be distinguished: investing in your own website, social account, investing in an online project on partnership terms, and much more.

Bank deposit

Creation bank deposits- This investment deposits that are most common in society. But it is not possible to consider them profitable, since low annual interest, when inflation is taken into account, will not bring the investor practically any profit. On the other hand, such an investment can be considered a good way to store money.

Investing in mutual funds

Equity investment funds have some similarities with PAMM investing (read the article " PAMM Strategy" on the blog). The essence of mutual funds is that investors invest in a "general cash desk", after which the purchase of shares of various companies by traders is carried out. Further, the profit received is divided among the participants in proportion to the size of the investments. The disadvantage of investing in mutual funds is that no one can say exactly when there will be a profit and whether it is destined to be at all, as well as guarantee the return of your funds.

Investments in Startups

A profitable type of investment (very similar in essence to such a type of investment as venture capital investment), in which funds are invested in an interesting, unusual project that should bring good money in the future. At the same time, the project after development may not shoot and the profit, like your money, no one will return to you. In the opposite case, when startups show positive dynamics and are well perceived by the consumer, then the sponsor, that is, the investor, has a good opportunity to earn.

Not everyone is born as a venerable investor, everyone starts from scratch and fills a lot of bumps before they come to some kind of result. If there is no desire to fill bumps and risk money, then we offer you short course young fighter - recommendations for successful investing for beginners.

Assessment of the investment process

Once you have chosen the environment in which you are going to operate, you need to study it carefully. Analyze trends, find out how you can get the most income, determine the approximate time to break even. For example, if you are going to invest in real estate, then be sure to explore the market, find out which objects are in greatest demand, and whether an economic crisis is brewing.

Investment Forecast

Predict what changes in your profitability may occur in the future and whether the investment will be profitable after a certain period of time. Also evaluate what factors can affect the change in market conditions and how to avoid negative changes. It would not be superfluous to consult with specialists: traders, stock analysts, managers in PAMM investment. Do not forget to evaluate how risky your chosen investment projects are and whether this risk corresponds to the return that you can get.

Form of investment

Decide what exactly you are ready to stake and in what form the investment will be made. If you are a beginner, then most likely it will be financial resources, in the future, both tangible and intangible assets can be added.

Purpose of investment

Decide in advance on the purpose of investment and act with an eye on it. If you only need to get a certain amount of money and “tie up” with investing, then you should not invest in expanding production or increasing sales. In the event that you see a further perspective in investing and there is a positive trend, then it makes no sense to withdraw money from the project, because there is an opportunity to earn more.

Activity analysis

After the start of your deposit, it is necessary to evaluate the development of the property and analyze whether there is a prospect - that is, at this stage it is necessary to evaluate the effectiveness of the investment. Perhaps the situation turned not in your favor, then certain adjustments should be made.

Monitoring

Even if the project in which you have invested money does not involve your direct participation, this does not mean that you need to idly wait for profit. It is important to constantly monitor the situation, control the dynamics, especially if you have invested in a high-risk investment object.

Everyone can try their luck in investing, but not everyone is destined to become successful investors. First of all, an investor is an analyst, strategist, predictor and financier in one person, he must:

be quite savvy in the area that you have chosen for investment;
navigate the pricing of this market segment (if we are talking about speculative investment);
be able to analyze the situation, have the qualities of a forecaster and strategist;
have specific goals, clearly understand why he is doing this business and what he expects from him.

In addition to the above, it is necessary to simply have funds for investment, and this should not be your monthly salary, on which you are going to live as a family of five. You should form your individual investment account from free funds that you can afford to lose. And, of course, do not put all your eggs in one basket - remember to diversify funds, that is, distribute capital across several projects, and even better, even across different types of investment.
Investing - a great opportunity practically passive income where money makes money. Visit any investor blog, and you will understand that it is not enough to find the answer to the question “how to become an investor”, it is important to understand that before rushing into battle, you need to be quite savvy and aware of what you are doing, soberly assessing the risks.

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Do you know everything about what investments are? Let's discuss their essence and applied value. Special attention will be directed to the types of investment, we will also touch upon the issue of investment demand, the paradox of thrift. After reading the materials of the article, you will receive the basic knowledge of a very extensive economic phenomenon -. Further study certain types and concepts will become simpler and easier to understand.

Investment demand (IP)

Considering this topic, one should touch on the concept of investment demand. This is the level of need for entrepreneurs to invest in joint ventures (means of production), to pay off depreciation, restore the depreciation of existing capital, and also ensure its growth.

IP factors

the expected level of return on investment;
discount bank rate.

The higher the rate of return, the greater the amount of investment will be, and the bank's rate is taken into account to calculate the cost of borrowed money capital.

Additional factors that influence the investor's decision are the rate of inflationary growth, the level of taxes, personal income, consisting of savings, consumption and investment. Consumption - is determined by the level of spending on vital necessities for existence. The total income can be partially consumed and the rest of it is either saved, that is, accumulated for a "rainy day", or invested. There is an interesting paradox about consumption and saving.

The paradox of thrift is one of the very apt observations of foreign economists Ketchings, Foster, Keynes and Hayek.

It turns out that the more savings and less investment, the faster the overall economic downturn will come. After all, the natural reaction in crisis and pre-crisis periods is to save, spend less, withdraw investments, and so on. As a result, demand decreases, causing a decline in production, and, hence, a decrease in wages. As a result, the ability to save is reduced. So comes the next round of decline economic growth and development.

To prepare for investment, it is necessary to assess what tasks the company faces, what goals need to be achieved.

As part of the preparation, they analyze which parameter requires additional investments:

to increase the efficiency of activities;
in the expansion of production activity;
in new productions that will increase the productivity and profitability of the enterprise;
to meet legal requirements, such as meeting environmental or other product safety standards. Such investments do not have a clear return, but indirectly contribute to the company's new level, with new distribution channels.

Conclusion

Investment activity is a very important element of the economy of any level of development. In the context of the interconnection of the economies of various regions and states, investments can be made in countries with low level economy at the expense of foreign capital, etc. Capital investment in the development of industries and improving the efficiency of a particular industry - play the role of a powerful lever for raising the standard of living, economic growth. Investment activities can be carried out by both public and private companies and organizations. The main factors of the desire to invest are the rates of return and the interest rate.

It is a mistake to strive to save capital "in case of a crisis", instead of investing it in capital and reproduction. According to the paradox of thrift, it is precisely general accumulation leads to further recession and crisis phenomena.

The investment climate in the state demonstrates its attractiveness for capital. If the enterprises of the country invest financial resources in order to generate income, it has prospects for favorable economic development.

Obtaining passive income is one of the most attractive activities that allows you to significantly increase capital. However, there are many pitfalls and undesirable risks. To become a successful investor, you need to know what types of investments are, as well as what profit and loss they can bring you. Let's look at several classifications of investments, as well as discuss the most important points when deciding on future investments.

Classification by form of ownership

Depending on who allocates funds for investment, the following types of investments can be distinguished:

Private. The investor is a private individual. This may be an individual or a legal entity.
State. The funds are invested by the state or its representatives.
Foreign. The investors are foreign corporations.
Mixed - joint ownership of the assets of several investors.

Classification by terms

The investment period is the time after which the investor plans to reach a certain level of profit.. Terms can vary significantly - from a month to tens of years. According to the generally accepted classification, the following types of investments are distinguished:

Short term. Typically, an investor expects to make a profit within the next year.
Medium-term. In this option, funds are invested for a period of 1 to 5 years.
Long-term. This includes long-term investments, for a period of more than 5 years.
Annuity. Some species investment activity can bring profit not constantly, but regularly. For example, deposits, purchase of debt, payments of pension funds.

Risk classification

Each investor determines the individual level of risk that he can tolerate. Often it depends on the warehouse character of the person and the experience of investing. High-risk operations, as a rule, promise quick and significant profits. Investments with minimal risk bring stable and measured profits. Investments that would give a high return in the absence of the risk of loss do not exist. Therefore, each investor determines which of the two factors is more important for him. The selected types depend on this choice. investment strategies:

Aggressive. It involves making quick profits with a high probability of making losses.
Conservative. Suitable for cautious investors who prefer a stable, reliable, less risky income.
Mixed. Combining the two previous strategies allows you to diversify risks and invest in assets of a different nature.

Classification by objects

There are the following types of investments:

Real . These are real assets or benefits received as a result of investing funds. For example, the acquisition of land, real estate, technology, patents, advanced training, new research and others. Real investments can be made in working capital (materials for production, raw materials) and fixed capital (equipment, software, machines).
Speculative. The investor receives profit by changing the prices of assets and holding the difference in value. As a rule, these types of investments are used for stocks, metals and other valuable instruments.
Financial. financial investments occupy a significant segment of activity and are very similar to the previous type. The main purpose of this type of activity is direct profit. This also includes the purchase of shares, debt obligations, investment in the foreign exchange market, leasing. The line that distinguishes financial investments from speculative positions is very blurred. It is generally accepted that investments are a longer and more calculated investment than speculative trading.

When choosing an investment object, the territorial component can also play a role. Depending on this, investments can be internal and external.

financial investments

They are the most interesting for many investors. Profit from financial type investment can be obtained in several ways:

Direct increase in the value of an asset and retention of the difference in price during its subsequent sale.
Additional profit. As a rule, this dividend payments that the company pays to its shareholders.

For successful investing, you need to have a good understanding of what area you are investing in, how it develops, what percentage of profit and loss you can get. To protect themselves from force majeure, many investors diversify their risks by investing in different assets that have different characteristics. Investing should be taken seriously enough, because instead of a quick and big profit, you can get the same loss. Having studied the various investment opportunities, you should choose those instruments that can bring good returns. The most interesting for investment may be the following types of instruments:

PIF. Mutual funds themselves are funds that analyze different instruments and invest in them the investor's funds. As a rule, they always use diversification and invest in different instruments at the same time. Exist different types mutual funds, the investor can choose the mutual fund that meets his requirements for terms, risks and profitability. In exchange for money, the fund gives the investor a share in the overall collective portfolio. The portfolio is compiled at the discretion of the fund, which is a positive moment, because the market analysis and the selection of instruments for compiling the portfolio is carried out by a specialist and a professional manager. The investor is freed from constant monitoring of the market, analysis of the effectiveness of their investments, and at the same time does not worry about their reliability.

Stock . Theoretically, by purchasing shares, the investor becomes a co-owner of the company and has the right to influence some decisions, take part in discussions and control of the company's affairs. If these actions are not the goal of the investor and he only wants to make a financial profit, then buying shares becomes only a technical moment. Profit is based on the difference in the market price of an asset when it is bought and then sold. A long period of holding a position on stocks gives additional income by receiving dividends. Dividends are part of the profits of the company, which is paid to all shareholders. The amount and regularity of dividend payments may vary and to some extent indicates the state of current affairs in the company, however market price is the most important metric.

Bonds. Bonds confirm that a certain amount of money was borrowed from the investor, which is subject to mandatory return and payment of interest. The amount of interest is negotiated before the transaction, so investments in bonds are considered quite reliable - they have little risk and bring little profit. A full and timely return of funds on bonds is prescribed in certain documents and ensures the reliability of the transaction.

Currency . Opinions about trading currency exchange are not unambiguous. On the one hand, these types of investments are considered a good investment due to the high probability of making big and quick profits. On the other hand, this is quite a gambling activity, which should be approached with all seriousness. On foreign exchange market various types of investment strategies can be applied - from short-term to long-term investments. However, when choosing an asset for investment for several years, it is better to give preference to stocks.

Real estate . Is a good investment. Profit can be obtained from the difference between the purchase and sale prices, as well as from the rental of housing. The latter method is used most often and after a while becomes a reliable permanent source of income for the investor.

Precious metals. Such investments are justified only in the long term. The value of gold, gems and art only increases over time, however, when making quick speculative trades, you can incur some losses.

Futures and options. These are contracts that give the right to sell or buy a certain product at a specified price. They are less risky than stocks because they somewhat limit possible losses.

The economic essence of investments and their types - the knowledge necessary for an investor to make his investments profitable. Understanding the main types of investments, you need to correlate each of them with your desires and capabilities. For example, you shouldn't do long-term investments with an insufficient amount of capital, the result will not be able to pay off the duration of expectations.

The economic essence and types of investments listed above correspond to the most important goal - making a profit. Wherever you invest money, they must work and generate income. Only after assessing the potential profit, one should evaluate possible risk. A variety of forms and types of investments allow you to distribute risks among several instruments and protect yourself from large losses. Diversification is one of the most reliable ways to minimize losses. No analytics and no forecasts can save you 100% from unexpected losses.

Large organizations and all legal entities have a staff of analysts and ample opportunities for right choice investment tool. Where is the best place to invest for individuals?

The following types of investments are considered the best ways to receive passive income:

mutual funds. For novice investors, they are interesting in that a professional with extensive investment experience will monitor the assets. By investing in mutual funds you can practice investing without significant losses before making future decisions on your own.
Bank deposits. The most reliable way to invest money. Suitable for those who are afraid to take risks and are ready to give part of the profit for risk reduction. A positive aspect is the ability to choose suitable and even individual conditions for the deposit amount, interest, currency, terms.
Give to management. It has much in common with investing in mutual funds, but it involves individual conditions. The approach to the investor is determined by a compromise between him and management company- risks, profit shares are negotiated.
Pension fund of non-state type. They offer savings and money management to ensure additional payments in the future.
Real estate. For a private individual, the most interesting option would be to make a profit from renting out housing.
Investment in commercial activity. Some promising enterprises at the initial stage of development, they need money. If you invest in them in time and become a partner of such an enterprise, then in the future you can get good passive income. It can also be considered as an investment object for medium-sized commercial enterprises that plan to expand production or improve technology. Some types of investment in human capital work similarly.

The economic essence and types of investments may differ somewhat, but all options are aimed at obtaining additional profit.

Independent investment. Often found in the field of stock trading, buying antiques and valuables. These types of investments require in-depth knowledge in the chosen field. Get good income possible only with a professional approach to business.

The above types of investments are available to everyone. You can choose an investment area for any amount of money and for any requirements for the risk/reward ratio. You can choose the object of investment yourself, or you can entrust it to more experienced people. Depending on who decides which types of investments to choose, they can be classified into:

Direct - when the decision is made by the investor himself.
Indirect - when the investor only gives money, and the management companies themselves decide what to invest it in.

Depending on the source of funds for future effective investments, the following classification has been formed:

Primary investment. They are carried out at the expense of capital formed both from own free funds and from borrowed funds.
Reinvestment. They are formed from capital that was received as a profit from previous investments.
Disinvestment. The reverse process of investing is when capital is withdrawn from investments made and is no longer used for these purposes.

The economic essence and types of investments imply a careful selection of the object of investment. At this stage, many investors are wondering: is it better to choose one thing or create a portfolio of instruments? There is no correct solution here. If you are very well versed in the chosen area and can predict the size of profit and risk as accurately as possible, then choosing a single instrument is quite justified. The portfolio, on the other hand, wins in that it allows for diversification, which in total leads to stable profits and reduced risk.

There are certain rules for the portfolio to be as efficient as possible and really be able to protect you from unforeseen losses - all assets must be carefully selected taking into account the correlation, the shares of all instruments must be the same, a combination of aggressive and conservative trading style and other important points are required.

Investment in various types and forms have penetrated so deeply into our daily lives that many people, even those who are not directly related to investing, have general concept about what constitutes an investment. The essence and types of investments are somewhat different for different authors. Let's take a look at this definition of investment:

Investments- this is an investment of capital in any form (property, money, securities, etc.) in economic objects for profit or for solving any social problems.

Types of investments.

In economics, investments are divided according to the objects of capital investment into financial and real. Real investments involve investing in enterprises and the life of staff. Financial investments are investments in securities and other financial instruments.

By level investment risk Investments can be of four types: risk-free, low-risk, medium-risk, high-risk and speculative investments. Explanations are required only for the last type of investment. For speculative types of investments, the maximum level of income is always expected, but the money is invested in dubiously risky investment projects.

By the nature of participation in the process, there can be direct and indirect. With direct investment, the investor himself invests money, most often in the authorized capital of enterprises, securities, etc. With indirect investment, financial intermediaries are involved in the placement of money.

According to the investment period, the following types of investments are distinguished: short-term(up to one year) and long-term(over a year).

Types of investments by form of ownership: private and public.

And finally, according to regional affiliation, they distinguish national and foreign investments.

Although economic entity and types of investments have many definitions and explanations, for an ordinary person, another classification of monetary investments will be much clearer. Consider the types of investments that are most convenient for individual:

Contributions. One of the most convenient ways placement of own free funds. It is enough to come to the bank and find out the term, interest and General terms by deposits, and then choose the appropriate one. The only difficulty will be in the variety of banking offers.
Mutual funds. For those who are just beginning to comprehend the basics of profitable capital allocation, this investment is the most convenient and cost-effective, and the Investor buys shares, which are nothing more than shares or bonds of an enterprise. Interest is charged on the investment amount.
Trust management involves the transfer of money or securities legal entity for profit. From the profit received, a certain percentage of the "asset manager" will have to be deducted.
United Bank Management Fund. In this case, the property of several founders is managed by a credit institution.
Real estate investment quite expensive , and the level of risk is very high. As a result of investing money in housing, you can win and lose with the same probability.
Non-state pension funds focus on investing in a decent old age. These funds manage pension assets.
credit unions characterized by high risk and high profitability. The investment scheme resembles bank deposits.
Independent trading in securities requires the presence of certain knowledge and skills of the investor.
Business investment is direct investment. About the business in which you are going to invest money, you need to collect the maximum