What is the investment?
The investment, in economic terms, refers to the use of capital with the intention of making a profit in the future.
Types of investments
Here’s the list of investments and its Types
- Investment Funds
- Bank Products
- Saving for Education
- Mutual funds
- Index funds
- Exchange-traded funds
Now, you’ll learn in detail.
There are different types of investment, which can be classified according to the time required:
1) Long-term investment: as in any other, a certain amount of money is necessary, known under the name of initial capital. These are the investments that require the most time but usually allow for the best benefits. These are usually related to the start of very important businesses or new companies.
When companies begin to develop, it is not usually intended to obtain immediate profits, the objective is related to the generation of a base that in the future provides the desired benefits.
2) Medium-term investments: although in these investments the benefits are not acquired immediately as in the short term investments, it is not necessary to wait years to see the fruits of the investment. Some examples of this type are the purchase and sale of foreign currency, which generates a certain difference for the person making the transaction, the same with the purchase of a property or even with a piece of furniture, such as a car to convert it into a vehicle for transportation of passengers.
3) Short-term investments: in this case, the invested capital is paid, along with the profits very quickly. The estimated time to recover the money is considered to be less than twenty-four months, but it is not intended to be before six. In this case, the profits obtained are as high as those of the other classes of investments.
What will be the investments :
- Bonds: those who own the capital access bonds, which only keep them when they represent profits or profits. Investors can withdraw these bonds in order to finance other types of businesses. They are not usually recommended as short-term investments.
- Shares: in this way investors access a certain percentage, in terms of value or rights, of a certain company. The purchase of shares allows for obtaining long-term benefits.
- Deposits: the easiest way to access short-term investments are through bank deposits. Although the earnings may be lower in relation to other investments, whoever deposits has the certainty that all their initial capital will be returned, that is to say, that there is no possibility of having losses. In addition, if they are short-term deposits, it is possible to withdraw the money at any time, allowing other investments at the time they arise.
- Property: not only does it allow access to great economic benefits, but they are also very safe. It is very convenient for companies that claim to have long-term benefits.