Investments are funds that are placed in appropriate commercial processes or financial instruments with the aim of making a profit. Investment is one of the most important and necessary processes for a modern economy. From an economic point of view, any funds can be spent in two ways: either to buy services or things, or to save and accumulate them. If funds are not circulated, this simultaneously reduces their value (as a result of inflation), and globally reduces circulation and provokes a crisis.

So, if the funds belong to a person (individual or legal entity), investing is the most practical and favourable way of saving and at the same time an opportunity to multiply the available finances. Even opening a bank account can be considered an investment, as the bank distributes the funds received at its discretion, investing in commercial projects, etc.



Financial investments are mainly securities that give the right to invest indirectly in a tangible or intangible asset. The main securities are:

1. Shares - securities, after the purchase of which the investor becomes a co-owner of a joint-stock company. The purchase of even a very small number of shares gives you the opportunity to participate in or at least contribute to the management of the joint-stock company. The shareholder acquires the right to participate in all meetings and discussions for the management of the joint-stock company, as well as to receive detailed and reliable information about its condition and, most pleasantly, to receive dividends.

2- Bonds - debt securities. The word comes from the English word "obligation", the original meaning of which is obligation. Bonds are securities that certify that a company or government has borrowed a certain amount of money from a creditor and must repay that money in full with interest. The purchaser of a company's bonds becomes a creditor of the company, rather than the co-owner he or she might become after buying shares in the company. The interest that will be charged is always negotiated in advance, which means that there is a low level of risk, so the profit that the bonds make is small.

3. Investment Fund - is money collected by many investors in one place, which the fund invests in stocks, bonds or other financial instruments according to the fund's set strategy. To choose a fund, you need to know how long you plan to invest for, what level of risk you want to choose and how much you want to earn. You can invest a certain amount of money each month or invest a large amount at once.



Non-financial investments are investments in tangible assets. The most common non-financial investments are of two types:

1. Real estate investments. This area of investment is quite profitable if the economy develops steadily. However, in the event of a crisis, both high profits and loss of funds due to a decrease in the price of the property are possible. Investments in real estate are classified depending on whether they bring regular income or not. An investor earns regular income by renting out the purchased property and also receives regular monthly income for renting out commercial or residential properties. In this way, he has the opportunity to cover the interest to the bank.
However, if you have a plot of land whose purpose you only promise to change and as a result you cannot sell it for some time, it will be a property investment that does not generate a permanent income. However, even the first method, which seems attractive due to the permanent income, has its disadvantages: the need to pay taxes and constantly monitor the condition of the rented property and be sure that tenants do not default on rent payments; etc.

2. Collectibles, raw materials. This type of investment is sometimes called passion investing, that is, investing in something you admire: paintings, other works of art, cars or precious metals and stones. This is probably the most stable and oldest method of investing. Since ancient times, with no other reliable types of investments, people have invested in gold, silver and other metals over and over again. The value of these investments is definitely increasing, but the downside is that it is almost impossible to invest a small amount due to the relatively high initial cost of acquiring such items.


Therefore, it is up to you to decide which type of investment you choose. However, we would advise you to take your time and gain knowledge not only by reading, but also by direct communication (with bank advisors or other people familiar with investing). When you have finally decided where you want to invest, always keep in mind the potential risks. Unfortunately, in investing, as in life, there is a rule of thumb: risk sometimes brings great results and sometimes, unfortunately, it can burn you badly.