Category Archives: General Investing

General Investing

How to Invest your Money Safely

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When it comes to making investments, most people know that there is always room for a possible loss. Stock market investments in particular are rather notorious for taking a rather well funded portfolio and emptying it rather quickly. Of course, that does not happen all the time, otherwise no one would do it. If, on the other hand, you do not want to take what many consider to be an unnecessary risk, there are a number of other investments that are reasonably safer, can still bring a good return, and are definitely worthwhile. Here are a couple of them.


A common phrase that is often used these days to refer to the making of your investments safer is having a balanced portfolio. This means that you are not putting all of your eggs into one basket. You know that some markets are a much greater risk than others, such as trading on the stock market, and so you put some of your investment capital into some that are much safer and less likely to be lost. This “balance,” created by placing some of your investment into a variety of potential interest bearing accounts, should result in an overall gain.


Investments Depend On The Person


If you are a young person, then it should mean that you would be willing to take a higher risk (assuming you have some capital that may be lost). The possibility of the highest gains, unfortunately, also come from the markets with the potential for the highest change. This means that there is a much greater likelihood of a real loss – especially if you do not know what you are doing. By using the services of an experienced trader however, a stockbroker that has been doing it for years, you minimize the possibility of loss. But you should only invest a portion of your finances into the stock market.


If, on the other hand, you are much closer to retirement age, then you do not want to take such a risk with your funds. Instead, you would want to place your soon to be needed funds into a much more stable growth account, where the loss can be minimized and yet still bring a return in interest.


Stable Investing In Trust Funds


If you are looking to stabilize your investments in the stock market with something that is relatively sure, then you need to consider mutual funds. This form of investing places your investment into the hands of investors that basically do the investing for you. They watch the market, manage the funds, and make the changes necessary in order to keep your account growing. After you inform them of what level of risk you are willing to take, then the rest is done for you. They take your funds and spread them over a diverse sort of investments, and it gives you a much more stable package.


The Most Stable Investment – Bonds


Probably the most stable investment you can make is to buy bonds. The safest, of course, are the US Savings Bonds. These are purchased at a set price and guarantee a set interest amount in a specified time period. You cannot get much safer than that – and probably not much is safer than the US Government – investment wise. If you are looking for the highest stability available, then you need to take some of your investment portfolio and add some bonds to it. Bonds are also available from other corporations, cities, etc., but their strength is limited to the financial strength of the company. The longer the time period of your investment – the greater the risk that the company may not be around.


In addition to creating a balanced portfolio, you need either to become very knowledgeable about financial investing, or you need to seek professional counsel. Many people lose a lot of money every year simply because of unnecessary risks. These risks would never have been taken if they had sought counsel from someone who knows much more than they did about the market and investing methods. A truly balanced portfolio will also have an expert to help guide you through the many potential hazards of the investment world.

General Investing

How To Invest Properly To Keep Your Business Growing

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Investing for a business can have varied meanings. You have probably heard the term investing in your future. Investing in your future to businesses may pertain to the amount of investments necessary to keep the business running and headed towards a profit.

Often businesses need to invest in products for their company to help insure proper growth of the company. For instance, upgrading computer systems may cost a lot of funds however having access to better computer programs is an investment. Computer programs that are current can allow the company to track spending, manage inventory and process information. By upgrading the computer systems the company is improving and therefore investing in their future.

Investing for a business can also mean investing in the customer. Every day the business strives to please their customers. By striving to gain and keep customers companies are using a form of investment. Investing in your customer is a key to a successful business. Without care and effort customers can easily leave and find another business to fit their needs. It is one of the challenging aspects of running a business, knowing when and how to properly invest in your customers. Some of the ways a business may invest in customers may be to strive hard through advertising.

Advertising aggressively is a way to try and bring in more customers for a business. Another way companies invest in customers is by aiming to have the best service available. Businesses must try hard to create a service environment for their customers. Through insuring customers feel well cared for within the company regardless of the product or service sold can go a long ways towards pleasing the customer and therefore your investments.

Another key to investments in a company refers to capital versus dept. Like many individuals companies often have to borrow money in order to buy products or services to keep their business running well. Borrowing funds is a common practice for a business. The key however is insuring that the debt is kept well under the amount of capital a business has or produces. By reducing dept you are investing back into the business. Financing from banks is to be determined as short term or long term depending on the length of time need to repay the banking institution.

Investing in your company is the only way your business can grow and profit. Through the investments in time, labor, customers or funds businesses are able to determine the amount of involvement and value of a company. Whether you are investing in your future is completely within the businesses control. Finding the best way to invest in the future of your business or company will insure long term success.

General Investing

The Guide to Investments

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You can make a lot of money with investment, you can have great value for your money when you put them in good investments. However, investments can also be a breeding ground for dreadful losses. If you can have a thousand and one ways to earn more from your money, you can have the same amount of chances of losing them. That is why many people don’t take chances of gambling their money.


There are ways on how to save money on investments. In this way, you can be sure that you have only spent the right amount needed to earn the right profits.


If by any chance something happens because no one knows how to foresee the flow of the market, you will be able to cope up with your losses because you were able to save more on your investments.


So to get you started on saving more money on your investments, here are some tips to live by:


1. Never put money on something you can’t afford


An investment is one great risk. It would be better to put more risk by investing on something that you can afford.


Don’t try to borrow money just to invest it on something else. As they say, money doesn’t grow on trees. So never expect your money to grow instantly. It would be better if you will lessen the risk of losing your money by only investing on things that require little payments.


2. Do not go with the flow


Never invest on something that you aren’t positively sure why you want to do so. It is best not to invest on a particular venture if you don’t have an exact cause for doing so.


Even if many people are investing on stock exchange, don’t go with the flow if you think that you don’t have firm motives to engage in such investment.


If you know your motives, you will surely know what to do next. You cut back the possible unnecessary fees you will be required to pay.


3. Compare investments


Try to compare investments. In this way, you can evaluate those investments that only require little amount of money but can deliver higher chances of gaining profits.


Moreover, comparing investments will let you identify the right venture that can let you save more money.


Good decisions will always allow you to save more money. So if you have made good choices on investments, you can be sure of your family’s future with more savings than the usual.

General Investing

Investment Programs

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Choosing the right investment program for you can be hard work, there are hundreds of different options to choose from encompassing all levels of risk, and offering varying returns to you.

For some people, the most attractive schemes available include investment in companies through the stock market, and while this is perhaps the highest risk option available, skilled investors are able to enjoy good returns by buying and selling stock at precisely the right time.

A popular investment program that includes stock as part of its portfolio is a mutual fund. A fund manager will handle the investments of a group of people, who then take a stake in the fund, and spread the risk between them. Good returns are still possible through a mutual fund investment program, but the service does not come for free, and your fund manager will get recompense for his work in managing the investments of the group.

A fast growing market that typically offers smaller gains than general stock market investment is an ethical investment program. Investing ethically works in much the same way as any ordinary fund, except that the investment vehicle, will avoid putting any money into companies that do not meet with the aims of the group.

Some ethical investment programs will not invest their money into the arms industry, or companies with a bad pollution record. Instead, funds will tie their investments into companies that embrace renewable energy sources, take their environmental impact seriously, or work with local communities to empower otherwise victimized peoples.

There are also many ways in which you can pay into an investment program. Some options will involve you paying a lump sum to a manager who will then handle all purchases made using that money throughout the term of the program. Other programs will involve you paying a pre agreed sum into a scheme for a set period of time before you get back money at the end. These savings schemes include personal pension programs, and may even be available through your employer.

It is important for any would be investor to fully examine the contract that they sign with their broker or fund manager to discover their full liabilities for the lifetime of the investment program, and understand how their money will be invested.

While growth is never guaranteed in any investment program, in the hands of an astute fund manager or with the advice of an experienced broker, there is no reason why you cannot enjoy substantial gains from any investment program that you choose to participate in.

General Investing

Foreign Direct Investment (FDI)

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Foreign Direct Investment

Foreign direct investment is defined as a company from one country, which makes a physical investment into constructing a factory in another one. The company can also make investments to acquire lasting interest in enterprises that operate outside the economy it invested in. The link with the FDI is made of a parent enterprise and a foreign affiliate, forming together a corporation, known as multinational.

To qualify as FDI, this investment must also allow and afford the control of the parent enterprise over the foreign affiliate. This kind of control is defined by the UN as owning 10% or more of the shares or voting power of a firm, which is incorporated, or the exact equivalent for an unincorporated one. In this context, ownership shares that are lower are known to be portfolio investment.

Global FDI was dominated by the United States in the postwar period, accounting for about three-quarters of the new FDI, reinvested profits included. Since that time, the 60s, FDI has continued to spread and eventually became a global phenomenon. Global economy now has an ever growing, increasing in importance, with FDI stock constituting over 20 percent of global Gross Domestic Product.

Continuous economic growth, de-regulation, liberal investment rules, as well as operational flexibility have all contributed to help increase the inflow of Foreign Direct Investment. Foreign Direct Investment is made of any form of investment that can earn interest in enterprises functioning outside the investor’s territory.

FDIs also require a relationship between a parent company and its foreign subsidiary. So that an investment can be seen as an FDI, the parent company has to have a minimum 10% of the ordinary shares of the foreign affiliates it is doing business with. At the same time, the investing company can qualify for an FDI as long as it has the voting power in a business enterprise that operates in a foreign country.


FDIs can be classified into two types, based on the types of restrictions imposed, and the prerequisites for these investments, namely outward FDIs and inward FDIs.
The government against all types of risks ensures the first type; it is subject to tax, and the risk coverage provided to the domestic industries granted to the local companies stand in the way of the first type of FDIs, also bearing the name of “direct investments abroad. However, the inward FDIs is more encouraged, as they include interest loans, tax breaks, grants, subsidies, as well as the removal of restrictions and limitations.

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