Capital investment
Investing involves direct investments into real business. What is aninvestment portfolio? Briefly, a set of securities, realizing theinvestment strategy of the investor. Other than interest (dividend)income from securities may be offered by changes in their marketvalue. Moreover, the "pro", trading in the stock market securities, on average make 2% profit per day, rather than pathetic 10-12%per year, offering banks. This is a very profitable business, even ifyou do not spekuliruete on the exchange. Dividends were almostalways higher than bank interest, in addition, they give you the right to manage the company and at a fraction of its assets in case of bankruptcy. That is, stocks profitable and safer than bank deposits,if you buy shares of powerful and reliable companies. At the sametime, there are many risks for those who do not keep abreast of the market.
The solution to this problem are the investment funds. They are reliable and profitable, combining incongruous. They are also called unit investment trusts (mutual funds). Virtually all major U.S.fund deposits (shares) depositors are insured for the amountabove 100 thousand dollars to each depositor. In the CIS countries, particularly Russia, funds (mutual funds) are working notso long ago, but they are tightly controlled by the Central Bank andquite reliable. The key word here - "enough" safeguards becausenobody gives a ...
