Investment

Investing is the direction of your capital in a certain niche for further profit. This is a broad concept and can actually include anything.

Today we will talk about increasing capital in the classical sense of the word, find out how it happens and how to find a suitable niche.

What is investing

Conventionally, an investment can be classified according to several criteria - a large and complex scheme is obtained.

By investment object divided into real, speculative and financial. Real investment is the immediate purchase of something tangible that can generate revenue. For example, an apartment for subsequent lease or a factory for the production and sale of products. Speculative - speculation with prices, purchase with the expectation that in the near future they will change and you can resell the object more expensive. Financial - trading in the stock market currencies, lending, working with securities.

By yield are high-yielding, medium-yielding, low-yielding and unprofitable. Some classifications offer numerical boundaries for each category, but this is too arbitrary, because here we will not indicate them.

By risk investments of high, medium and low risk, as well as its absence. The absence of risk means that profits will be guaranteed, and high risks indicate a large number of threats to your capital, costs and, in principle, potential failure.

By time can be fast, medium or long term. The fast ones pay off almost immediately, literally within a year, while the long-term ones can take up to several years. These include the purchase of real estate or precious metals for storage purposes, rather than resale and speculation.

By orientation or goals of the investor initial or reinvestment (in fact there are more types, but we call only two and three of them in order not to create confusion). Reinvestment - the direction of the profit received from the paid-off investment in new projects.

How to choose the right direction

How to choose the best direction for investment? Consider several factors:

1. Your financial capabilities. The threshold of entry in different niches is different, and if your starting capital is small, you can hardly work with, say, real estate;
2. Determine your needs. Do you want the investment to pay off immediately, or are you ready for long-term projects?
3. Relate the risks. Potentially profitable, but high-risk investments are specifically acceptable in your situation, or is it better to abandon them?

It is important to understand the degree of their knowledge in a particular area - they are not mandatory, but will be an additional advantage. So, if you understand currencies, but understand nothing about real estate, you must give preference to be the first.

The next factor is market trends. Direction, a couple of years ago, now may not bring income. Study the information space of the chosen sphere and consult with experienced investors.

The last factor to be mentioned is how long the trend can last. Even the most proven destinations can quickly go out of style for a number of reasons. If the trend goes away after six months, most likely, it does not suit you and you need to look for something else.

Potentially revenue directions in 2019

This year, there will be several investment niches that you should be aware of.

Securities and metals

Trading on the stock exchange through a broker is available to every citizen of Russia who has reached 18 years. All that is needed is to find a good service provider and collect start-up capital, which may not be very large.

Different brokers offer different entry thresholds, from the minimum $ 200-300 to $ 500 and above. Carefully study the conditions of cooperation in order not to create uncomfortable conditions for yourself.

Income is closely correlated with investments: it is possible to trade in small amounts, but the return will correspond.

Real estate

Investment in real estate is an expensive way to increase your savings. The directions are characterized by a large start-up capital.

The mortgage issue is very interesting: it is relevant if your goal is to own a property for your needs. In the context of investing, lending loses all meaning, since it can take dozens of years to pay for housing.

Dispose of housing can be different: just leave it as a means of avoiding inflation, rent (implies additional expenses for periodic repairs) or resell, that is, engage in speculation.

cryptocurrency

Cryptocurrencies are ambiguous, but this year remain relevant. Characteristically, the trade process is simplified, and you can invest small amounts. A good investment portfolio can be collected on $ 200, of course, and the profit will be proportionate.

For small investments, commissions are also dangerous - they often “eat up” a significant part of the amount, especially with multiple transfers from one account to another. And large investments may not be justified, because the market is very volatile, the rate and volume of capitalization often change.

HYIPs

 Investment project or HYIP projects can be of different nature and focus on different directions. This is a trend investment object, because it is able to bring greater profits in a short time.

Of course have HYIP projects longer and with lower percentages, and they also deserve attention. Choose one or another type of need, starting from the situation.

When choosing a project, consider the main criteria:

1. How he positions himself;
2. How much information is ready to provide the investor;
3. In what niche does it work, is it in demand at the moment.

Startups

Young projects in various industries are also open for investment. The choice is big: over the past couple of years, startups appear more and more, and sponsors are not rubber.

Popular are IT-sphere, beauty and fashion, and, oddly enough, the agricultural sector. However, the latter is distant from the ordinary person and it is difficult to work with it, because it is not worth taking it into consideration.

When choosing to pay attention to the concept of the project and its potential. A concept is an idea, a goal that the organizers want to achieve, and it is very important that it is not abstract, otherwise you will not receive your dividends. So the development of a new cosmetics brand is much more likely to complete successfully than the development of a time machine.

Risks and benefits

Let us estimate the main risks and benefits of investing for an individual. Let's start with the bad:

1. Invaluable learning. When the investment began to wade into everyday life, people decided that they could just take the money and invest it somewhere, and after that they would have a source of stable passive income. It does not work this way - the object of investment must be chosen carefully and able to analyze;
2. Factors independent of a person - market decline, price changes, changes in investment conditions, and so on;
3. Incorrectly selected investment portfolio or lack thereof.

And finish with a good one:

1. Almost no effort required, unlike hard office work;
2. The source of additional passive income;
3. There is always plenty to choose from;
4. There are no strict requirements for the investor.

Investing is, above all, progress and access to a qualitatively new standard of living. You should not stand aside when there is such an opportunity.