Types of investments

The choice of type of investment

     The purpose of any financial investment is profit, and what tools to get it better to use, the investor decides, starting from the amount of capital, the ability to manage risks, as well as personal preferences and knowledge about the market.
     Any type of investment has its positive and negative sides, and it is impossible to find an absolutely win-win option, which ensures not only the safety of your investments, but also their significant increase. The main criterion for each investment is a simple ratio – the greater the income, the more risks.
     The least risk is the loss of their finances by an ordinary depositor who goes to the bank to open a deposit, but it is also impossible to name the interest earned by him on the deposit, since they are unlikely to even cover inflation costs.
     One of the most popular and profitable investment options is the acquisition of shares in various companies. You can receive income as dividends, decisions on the payment of which can not be expected, since many companies invest this profit in the development of production, and do not spend it on regular payments to their shareholders. But the main income may not be these payments at all, but the growth of stock prices in the future, which can reach hundreds and thousands of percent. Nevertheless, this method of making a profit is characterized by a high risk, since prices may not rise at all, or vice versa – slide to the bottom.
     Buying bonds is a less risky way to invest. Despite the fact that the profit here is slightly less than when buying stocks, you can always return your funds. On government loans, governments usually try to settle accounts with borrowers, and loan repayment by private firms is specified in their charter.
     To make money on Forex or other exchanges, such as commodity and other, you need to get additional knowledge or contact a dealing / brokerage company, which will gladly take over the management of your savings. It is very easy to earn a lot here or lose everything, so be careful and careful when choosing a broker, find out the rating of management companies, get acquainted with the consequences of their work, read reviews of other investors.
     The world of investments is much more voluminous and interesting, there are many diverse opportunities for investing free money, you just need to always be prepared not only for suddenly received profit, but also for real losses.