Well-known expression: "Money must work! 'And' Time is money -! 'Known to all. It is these expressions can be in the full sense of the word attributed to such concepts as 'investment'. Investments – this is inserting cash assets to multiply profits, where the key requirement is the presence of risk. Currently, there are so many types of investments: investments in fixed capital investment in unproductive assets, dolgosrochnyei Short-term investments, foreign, intellectual, kapitaloobrazuyuschie and so on. Among these all the above-described species distinguished two basic – direct and portfolio investments. To make it more understandable, it is necessary to bring interpretation of these concepts: Direct investment – it's their money directly to their owner in a variety of investment objects.
Portfolio investment – an investment of funds in various securities. Next, we consider more detail the difference between direct and portfolio investment. First and foremost it is important to note that portfolio investments are more liquid in comparison with straight lines. Thus, portfolio investments may be in quickly turn into any currency. Another equally important difference is that the direct investor is an active participant, ie has the right to vote in the management of a company in which he invested investment. A investor portfolio investment is a passive participant, ie it has no right to vote. Yet it should be noted that direct investment in most cases, the investor receives at least 10% of the company or enterprise. As Typically, the investor is chasing a blocking stake.
Naturally, you can get more profit in direct investment, but here there is no small risk. Safer is portfolio investment. Purchasing portfolio investment, you can choose one of the ways: Individually earn on the stock exchange. Work through the mutual fund (mutual fund). In option number 1, you may be able to get the most profits than the second. But there is also its biggest drawback – high entry barrier to the stock market. In this case, it does not take a lot cheaper procedures. If you are going to make a profit through a pif, the profits will be less as uif takes its commission for services rendered, but in this case you do not have to worry, because all the interesting action will be to acquire a mutual fund. In the end it is important to notice that in the case of investor risk aversion, appropriate option would be to place funds in a bank deposit.