However, not everyone knows where to invest wisely. Trends change every year. Some avenues retain their attractiveness for investors, while others provide such low returns or carry such high risks that they hardly merit attention.
So how should one choose an investment tool? What avenues are currently the most in-demand among professional market players?
The founder of RESURS, S.I. Tereshkin, has decided to delve into popular investment tools. The entrepreneur has carefully studied all data regarding modern investment methods, tried a number of them personally, and is ready to share his insights. More about the founder and his investment activities can be found on the website: www.org-market.ru.
Current Investment Tools 2019
As of now, only a few directions deserve attention. These include:
- Mutual Funds;
- Business;
- Securities;
- Private Lending.
Each of these instruments has its strengths and weaknesses. To select the most suitable one, it's worth examining the options in more detail.
Mutual Funds
Mutual funds are popular among investors from various countries around the world. These organizations attract funds for subsequent investment in securities, currencies, and precious metals. A manager handles the funds, selecting the most attractive investment avenues.
The fund continuously monitors both domestic and foreign markets and analyzes all received information. This enables the organization to build a profitable strategy. In most cases, the manager selects avenues that have slightly depreciated in value but have the potential for growth.
Self-purchasing of securities without such experience and specialized knowledge is unlikely to bring profit to the investor. Furthermore, funds have the capability to accept small investments. In contrast, entering the stock market without having $10,000 or even $100,000 is practically impossible.
When collaborating with mutual funds, the investor doesn't need to monitor the market hourly, study literature, etc. It's sufficient to trust professionals, provided they are indeed professionals. The market is rife with fraudsters, so one should approach the selection of a company with utmost responsibility.
The activities of the management company are regulated by government entities. This significantly reduces the risk for the investor. However, not all funds operate lawfully or have the necessary licenses and permits. To avoid problems, it's essential to perform self-verification.
Business
Developing one's own business is always a wonderful opportunity to increase funds while simultaneously exercising control over all processes. In this scenario, the investor assumes full responsibility for the enterprise's development. Should losses occur, one has no one to blame but oneself. Accusing others is a futile and pointless endeavor.
When opting for this investment method, it’s important to understand that lost funds will not be returned. Therefore, every step should be carefully weighed.
For business development, Sergei Tereshkin recommends adhering to a series of steps:
- accurately calculate the investment amount;
- study the market for goods and services;
- analyze competitors and their pricing policies;
- choose an assortment.
The calculations must include rent for premises and transport, product costs, staff salaries, furniture, and computer equipment, as well as the average check. This will allow for calculating the project's profitability and its anticipated profit.
The main advantage of investing in one's own enterprise is independence. An individual independently decides how to manage their funds. If necessary, one can always attract co-investors who will hold shares in the company. With favorable circumstances and a savvy approach, the business can generate profits for the owner for a long time.
However, it's crucial to understand that there are no guarantees of business success. In this case, everything depends solely on the efforts and patience applied.
Securities
Speaking of mutual funds, it is also pertinent to mention the self-purchase of securities. Such investments should only be made if the funds won’t be needed in the near future. These are long-term investments.
This refers to stocks and bonds. Company shares enable a person to hold a specific stake in the firm. The investor can receive annual dividends, participate in the company’s affairs, and, if needed, sell them at an increased price.
Investing in securities can yield significant profit. Additionally, shares are challenging to steal, as the securities are stored electronically with a registrar. The only downside of this investment method is the lack of guarantees for income. There is always the risk of company bankruptcy or management concealing the actual profits.
Bonds represent a less attractive option. They cannot provide high returns but are stable securities with low risk of money loss.
Private Lending
Currently, the most prevalent instrument of investment is private lending. Here, an individual entrusts their funds to a borrower under mutually beneficial terms. Transactions can be conducted through dedicated platforms or directly.
It is important to acknowledge that among honest borrowers, there will always be fraudsters who simply wish to take the investor's money without intending to return it. To reduce the risk of fraud, it's crucial to enter into a formal agreement delineating all terms. It is also advisable to verify the potential borrower’s background, workplace, and repayment prospects.
This tool is characterized by high profitability and, simultaneously, significant risk.
When choosing an investment method, it's vital to weigh all the strengths and weaknesses. Only after this should a final decision be made.
