Real estate, business.
Bank deposits (deposits)
This is the easiest, most elementary and reliable way to invest. You give yours to the bank under a certain percentage. Bankers "scroll" this money by investing in other financial instruments. For which you receive a predetermined percentage of profit.
For example, you invested money in a bank for a year at 10% per annum. Bankers immediately give this money to another client in the form of a loan, but already at 20% per annum. As a result, the bank in a year returns your funds to you with accrued interest, and pockets the remaining difference.
The advantage of investing in a bank is that you know exactly how much money you can receive after a certain period of time, while other financial instruments cannot boast of this. You can calculate the profitability of a particular deposit on a deposit calculator, and if you need to calculate the amount of overpayment on a particular loan, then use a loan calculator.
On the topic of bank deposits, read:
Mutual investment funds (mutual investment funds)
This is the second most popular way to invest. In short, mutual funds are a collective financial instrument, when investors' money is invested in one big pot and then professional managers multiply this one big amount of funds by various methods.
Shareholders' funds (as those who have invested their money in mutual funds are called) are usually invested in stocks, bonds, gold, currency, etc. More precisely, they are not just invested, but they are managed. Any fool can just buy shares. The task of professional managers is to find such stocks that have fallen in price at the time of purchase and there is a possibility of their further growth.
In order to determine this probability, technical and fundamental analysis is used, the economic situation is studied both in the world and in a particular region, news is monitored, as well as many other parameters that are too complicated for a simple layman.
This is the essence of mutual funds, to save people ignorant of these issues from all these difficulties. If you have free funds and you do not have the opportunity to trade on the stock exchange from morning to evening, then it is easier to transfer this money to those people who have plunged into the topic of investing with their heads and have a lot of experience behind them. At least at the initial stage.
Further, as your experience in financial matters grows, you can start buying stocks, bonds and other investment instruments on your own. More on this later, but for now let's get back to mutual funds.
Compared to other financial instruments, investing in shares is more profitable in the long run, but at the same time very risky.
Here you need to constantly keep your finger on the pulse, monitor the situation in the markets, so as to prevent the loss of capital in a strong fall in financial markets that occur during all kinds of crises.
To more clearly understand what profit can be made on shares, watch the video “How to earn 678% profit on Sberbank shares”.
Video: How to earn 678% profit on Sberbank shares
Bonds
This financial instrument is designed for people who are not inclined to risk. It is very difficult to get a big profit on it. Typically, the return on bonds is no higher than the return on bank deposits. Therefore, this financial instrument can hardly be called a profitable investment.
However, this does not mean that bonds should not be invested. The fact is that it is not recommended to “keep all your eggs in one basket”. Experienced and successful investors always spread their funds in several different instruments in order to reduce their risks.
Imagine that you have invested all your money in stocks, but after a while there was a crisis in the market and their prices fell. Along with this, the amount of your capital will decrease. To prevent this from happening, you need to invest part of the money in deposits, part of the money in bonds, gold, and so on.
In this case, you will lose on one instrument, but you will win on other instruments. But back to bonds:
A bond is a debt issuance security that confirms the right of its owner to receive a certain amount of money from the issuer.
And in order to understand how to properly distribute funds between various financial instruments in order to reduce risks and increase the profitability of your investments, read these articles:
Forex
Forex (Forex, sometimes FX, from English.FOReign EXchange- foreign currency exchange) is a market of interbank currency exchange at free prices.
The essence of Forex is speculation with the currencies of various countries. For example, you bought 100 euros for 90 dollars. And after some time they sold these 100 euros for 120 dollars. Thus, earning $ 30 on this transaction.
In Forex, trading always takes place in currency pairs, as in the example above. Changes in the value of currencies occur constantly and depend on many factors. For example, in Greece the economy is not developing, the state does not receive profits, but the country needs to be supported somehow. Since Greece is part of the European Union (EU), everything in this country is sold and bought in euros.
Thus, the instability of the economy of one state influenced the attitude of investors towards the entire EU. Investors felt a threat to their capital and urgently began to get rid of the euro. All this led to a fall in the value of the euro against the currencies of other states. It is on such movements that money is earned in Forex.
This method of investing can be called profitable only if you yourself trade on Forex, when you already have extensive experience, your own strategy for entering and exiting the market, as well as an iron will.
There are only a few people who have made a fortune in forex. But those who tried to get rich on this and went bankrupt - millions. Draw your own conclusions.
Cumulative life insurance
This way of investing can hardly be called profitable. As the name implies, this is insurance in case of any unforeseen circumstances. Its difference from conventional insurance is that it is a combination of human life and health insurance with a program to accumulate, preserve and increase your capital.
If ordinary insurance simply pays you a certain amount in the event of an insured event, then in this case, if nothing happened during the entire period of the contract, you can either receive the entire amount accumulated over the years, or receive a monthly payment until the end of life.
OFBU
OFBU stands for Banking Management General Funds. In fact, these are the same mutual funds, but with broader investment functions. On the one hand, this is a plus, since by investing in OFBU you have the opportunity to increase profits through wider investment combinations. On the other hand, it is more risky.
There were cases when OFBU showed a yield of 600% per annum. However, the main problem lies in the fact that the activities of OFBUs are not regulated by legislation, which is why they are less subject to control, unlike the same mutual funds.
There are also cases when the short-sighted activities of managers led to the complete collapse of the OFBU.
You can read more about the activities of general funds of banking management here:. On my own behalf, I will add that at the moment it is best to invest in OFBU such an amount of funds that you will not be sorry to lose if something happens.
hedge funds
I must say right away that in our country this is a relatively new and not sufficiently developed financial instrument, which is available only to wealthy clients.
The minimum entry amount here starts from a few hundred dollars to a million. In the West, hedge funds are very popular.
Hedge funds do not have a clear regulatory framework, which allows them to freely choose their enrichment strategies and use a wide range of financial instruments when investing money in various markets. The result of the work of hedge funds can be both super profits and huge losses.
One of the most striking examples of hedge funds is the Quantum fund, founded by the notorious , who was able to make a profit equal to $ 1 billion in a day!
Structural (structured) products
A structured (structured) financial product is a complex financial instrument that is issued, as a rule, by commercial and investment banks and is created to meet the specific needs of clients.
This financial instrument became especially popular during the crisis. After all, when you invest in a growing market and constantly get good profits, this is one thing, but when the situation on the markets is not stable, especially during crises, many investors are trying to find reliable ways to invest funds that will give them more profit than banking deposits.
The essence of a structural product is simple - part of the funds, as a rule, 80-90% is invested in bank deposits or bonds, but the remaining 10-20% is invested in futures and options.
All this allows, in the worst case scenario, to stay with your money and not lose anything, at best, make a profit of about 20-30%. This is not very much, but it is higher than the yield on bank deposits.
But again, nothing to compare it to. For example, the most successful investor in the world, Warren Buffett, has been providing his clients with about 24% per annum over the past 35 years. 24% per annum does not seem to be much, but only Buffett and no one else can receive such a profit consistently for many years.
Gold and precious metals
For many people, wealth is associated with a mountain of gold. Since ancient times, this metal has been a symbol of wealth and power, so it has become the cause of quarrels, robberies, murders and even wars.
Gold should not be considered as the most profitable way to invest, despite the fact that in recent years it has risen in price a lot. The fact is that most often gold acts as a refuge for investors in difficult times.
When crises dominate the world, in order to wait them out, investors withdraw their savings from stocks, bonds and other financial products, and then invest in gold.
As soon as the crisis recedes, investors immediately look for more profitable ways to invest. This is the reason for the rise in the price of gold in difficult times. But then, the price of precious metals inevitably falls.
Real estate
Real estate has always been a profitable way to invest. Not only that, real estate itself does not depreciate and, as a rule, it only rises in price from year to year. But real estate also allows you to receive passive income from renting it out.
True, there is one serious “but” here, which is the high cost of real estate. In fact, this is an investment for wealthy people. Because of what, this method of investing should be considered not at the initial stage, but when you already have big capital and you have the opportunity to invest in various financial instruments.
True, there are exceptions. For example, you can profitable to invest in real estate at the stage of its construction. At this time, as a rule, there is no need to pay the full cost of housing and you can pay a certain monthly part.
Thus, if you have the opportunity to deposit the required amount and this will not affect the quality of your life, then you can safely look for suitable options. The fact is that at the construction stage, a square meter of housing costs much less than later, when the construction is completed.
Business
Each of the above financial tools, has a certain degree of risk (reliability). Depending on this, the range of possible profit changes. The riskier the financial instrument, the higher the return it can bring. However, so is the loss.
Each of these financial instruments has its own advantages and disadvantages. And under various life circumstances, it is worth choosing the best ways to invest. But, personally for myself, I have already determined the most profitable way To invest money is a business!
Why? Because business is unlimited dividends! And they will depend only on you. From your efficiency, imagination, diligence, ingenuity.
Any other financial instruments do not depend on you. They depend, for example, on the current market situation, on the conditions determined by other people, on the financial results of a particular company, on the actions of speculators, on marketers developing certain financial products.
Building your own business is entirely up to you.
This is where you set the rules by which you will play. Here you decide how much income you will receive. Of course, business also largely depends on various external circumstances. But, in any case, the last word is yours, even if you decide to sell it.
In 2007, I opened my own business for the first time. It was a small tanning studio. More precisely, it was a small room in one of the hairdressers, in which I installed a solarium, all the necessary accessories, planted an administrator and began to earn money.
This business has many benefits. I will talk about them in future releases. For now, I just want to draw your attention to the fact that this business has brought me good dividends. For the year I received more than 100% per annum.
It was a great test, during which I was able to show many of my talents. Organizational skills, managerial skills, design talents, tested his advertising vision.
I regularly conducted various marketing researches, collected analytical data, negotiated, looked for suitable premises - this is just an incomplete list of those areas in which I applied my knowledge and experience, or mastered new horizons.
When you are employed, you don't have as much responsibility as you do in your own business. These are very different measures. Hired labor is someone else's. Your own business is yours. You are your own boss. You decide how and when you work and not work. You don't have to report to anyone. This is a fantastic state.
Creating your business, you feel like a creator, artist, a poet. You create your own product or service. And only you are responsible for its quality. It was a very interesting period of my life, when I had to worry a lot, rejoice, worry, strain, enjoy what I did.
Building your own business is very strengthened my faith in myself. If before this event, I had a lot of complexes, fears, worries, doubts, prejudices, then after I organized my business, they melted away like smoke. I am strong. I got stronger. I grew up.
Why am I saying this?
In order to convey to you the idea that by investing in your own business, you receive not only material benefits in unlimited quantities, but also develop in many areas of life including personal and professional growth.
It is unlikely that you will achieve similar results by investing in deposits, shares, mutual funds. Therefore, if you have Free money and you are looking for where to invest then think about starting a business.
If you do not have free money yet, then urgently start leading in order to collect initial capital. On this topic, I have, which will help you in the near future to accumulate initial capital to create your own business.
Personally, I did not take any loans from banks, did not borrow money from friends and acquaintances. Everything I invested in my own business was the result of my effective management of the family budget.
Now, I am developing several businesses. It's very interesting and exciting. These projects bring me much more profit than when I was employed. These businesses bring me more money than bank deposits or any other financial instruments.
At the same time, I am completely “purple” for crises and everything that happens in the world.
It does not affect my income in any way. This does not mean that I do not work with other financial instruments. Some of my funds lie in bank deposits, some of the funds are invested in shares of various companies, and I regularly buy additional assets of interest to me. Also, there are investments in mutual funds and pamm accounts.
I regularly monitor what is happening in the financial markets and, depending on the situation, make decisions to buy or sell certain products. Investments are a very interesting and big topic, in which there are no limits to perfection.
Don't be afraid to take risks, choose what works best for you, accumulate funds and financial freedom and independence will not be long in coming.
P.S. In conclusion, I suggest you relax a bit and watch a breathtaking video. You have never seen such amazing beauty.
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