Money Investment Into Securities

Before we will talk of what is actually investment which and why it is better to invest exclusively in securities, instead of, for example, in real estate, we should be specified with the major determinations. Investment is an insertion of the savings in another’s business, on terms of return, certainly. Investment funds appeared rather long time ago.

The most popular class of investments, unconditionally, investment in securities though also admits precious metals, and share investment funds in which also it is not forbidden to invest. Securities are practically the document certificating property rights of the investor, performed only at a presentation of this. It is allocated various classes of securities. From the practical point of view of the investor who has not taken place yet the typology by investment possibilities of papers interests. Securities can share on the certain income, shares and derivative securities. In advance the payment of certain amount under the share is considered distinctive parameter of securities with the discussed income.

It is easy to guess that securities serve as a variant of increase and preserving of the primary capital. The major purpose of securities is the savings of equity from depreciation though initially securities are intended for increase of the primary capital. Settlement accounts in banks, with their insignificant profit, but raised reliability in the conditions of domestic financial instability admit at us the most widespread type of investments.

For the same who wishes not only to keep and to increase the savings a reasonable direction there is an investment in securities. The security market, as well as any other financial institution is subject to different fluctuations. Instability of the prices in the market, country fiscal policy, bankruptcy possibility – all it anyhow affects the price of securities. It is characteristic that with instability increase the size of the possible income. The example of the investment market is interesting: the rate not often surpasses 11 % whereas the profit in share investment funds constitutes an order to 40 % in bank deposits.

There is no doubt that possibility of absolute loss of the income is the most significant factor for any investor. Besides probability of complete loss of profit there are risks of loss of a part of profit and even risks of loss of the sum exceeding seed capital. It is not difficult to guess that the purpose of any investor is the maximum lowering of any risks. Proved the tool of resistance to risks is the investment portfolio.

The investment portfolio is a list of all securities which are in the property of one investor. Without risk and simultaneously the high-yield security is a dream. The investment portfolio can so to pick up various securities that together they collected any income, and eliminated, or considerably reduced, risks of loss of the primary capital.

In general, investment activity is rather difficult. Excellent comprehension of a developing situation in the market, desire to risk and wait – here the incomplete requirements list, to the beginning investor.

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