How To Achieve Investment Efficiency

Table of contents:

How To Achieve Investment Efficiency
How To Achieve Investment Efficiency

Video: How To Achieve Investment Efficiency

Video: How To Achieve Investment Efficiency
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Everyone has the legal opportunity to invest not only in bonds and shares of domestic issuers, but also in assets of other countries. A rational investor should strive to ensure that the investment is effective.

How to achieve investment efficiency
How to achieve investment efficiency

It is necessary

  • - company;
  • - investments

Instructions

Step 1

Investment diversification is the main way to achieve investment efficiency. The benefit of diversification stems from the fact that different assets independently or do not react to the same actions or events. If the investor owns a set of assets, then in the event of a decrease in its value due to adverse events, this is offset by the growth or stability of other assets.

Step 2

That is, the whole point of diversification is that the investment portfolio consists of assets that are independent of each other. To achieve investment efficiency, you first need to build an investment portfolio by studying the interdependence of asset dynamics. Therefore, it is worth investing in the economy of several countries that are located in different geographic zones.

Step 3

The investor can determine which of the portfolios was effective, but cannot calculate which will be the most effective in the future. In developed countries, a private investor can build an effective portfolio with the necessary risk / return ratio from the shares of funds available in his country. Large investment funds seek to provide shareholders with the opportunity to invest in any segment of the economy or region of the world.

Step 4

Theoretically, our citizens can also purchase a share in a large fund, but in reality, when such a desire is realized, technical difficulties arise, because it is not so easy and rather expensive to transfer funds to buy a share to another country and return them back, registration and taxation cause serious difficulties.

Step 5

The ultimate goal of the company's investments is to increase their efficiency by expanding the company's activities, reconstruction, technical re-equipment and new construction. Consequently, it is not the efficiency of the use of investments itself that is important, but the efficiency of the production of the invested object.

Step 6

However, one should not forget that the risk factor is always very significant, since investments are made in conditions of uncertainty, in addition, its degree is constantly changing. Indeed, even at the time of purchasing new fixed assets, it is impossible to accurately predict the economic effect of such an operation, such decisions are based on an intuitive basis.

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