Investing is the placement of your capital in assets with the aim of increasing it and subsequently receiving profits in the form of passive income. There are several important points in this definition that need to be dealt with.
Instructions
Step 1
For a successful investment, decide on the assets. These are property and intellectual values, objects of economic sectors, enterprises and financial markets. In relation to assets, an investor differs from a businessman, since he is not directly involved in the capital creation process. That is, he does not work with assets, but owns, manages them and receives his passive income.
From this, some people incorrectly conclude that the investor must be a very rich person. This is not true. You can save as little as $ 10 a month, but do it constantly and for a long time, because investing is mostly a long-term investment.
Step 2
You also need to know that there are three main parameters in the investment process. This is the term, the interest rate under which the capital is invested and the amount that the investor invests on a monthly basis. The following question arises: where can an investor invest his money?
Step 3
Investment instruments are what we can invest our money in, they can be different:
- Bank deposit is the simplest and most affordable type of investment known to everyone.
- Real estate, which in Russia in the last decade is becoming more expensive.
- Less well-known investment instrument - mutual funds (mutual funds). In this case, you need to choose a reliable fund that has shown good returns for several years.
- Hedge funds are collective investment funds, more reliable and profitable than mutual funds, but in Russia they are still in their infancy. Therefore, here you have to work through an intermediary - a hedge fund fund.
- Precious metals are one of the most reliable ways of investing money. This does not mean gold rings and chains from a store, but accounts on which virtual grams of the gold we have purchased are placed.
- Trust management is the transfer of funds to the management of traders working on FOREX.
Each of the investment instruments is interesting in its own way, each can be talked about for a long time and in detail. Our task was to define a widespread term and understand whether an ordinary Russian citizen with average incomes can become an investor.
