What are investment assets? How can they be managed? What if investing alone seems too complicated?
general information
What is considered an asset? By this we mean property, cash, financial resources, materials, raw materials and intellectual property that belong to a certain person. But what is called an investment asset then? This designation is used for property that can provide a high level of profitability or some kind of social effect due to investments in it. That is, it is an asset for which the statement works that investment is a process of increasing capital or obtaining a certain benefit. Moreover, due to investments, the goal that was set should be achieved. As you can see, an investment asset is a pleasant thing in terms of ownership.
What types exist?
A successful investment can be ensured by a large number of ways and means. We single out the main ones:
- Tangible assets. This includes precious materials, raw materials, real estate, fixed assets, equipment, inventories and the like.
- Financial assets. They include bank deposits, personal participation in the investment processes and in the stock markets or through special structures, trust management services, and so on.
- Intellectual assets. These are patents, copyrights, licenses. Moreover, in this case, it implies not only a complete purchase, but also investment in the development of technology, creating a unique product, writing a song or book, after which the person who invested will receive a lifetime passive income in the form of a certain percentage of earned money.
- Business assets. Potentially, investments in them are the most profitable. But at the same time, they are also the most risky. In this case, money can be invested both in a business that is developing from scratch and in a franchise.
In order not to lose their funds, as well as have an adequate idea of the state of affairs, an investment assessment of the assets is carried out. We’ll talk more about this later.
Accounting
For the first time, the concept of an investment asset was introduced in accounting regulation PBU number 15/2008. It will not be superfluous to give an interpretation of the subject matter in the article. So, according to PBU 15/2008, an investment asset is an asset, before the intended use of which a significant amount of time must pass. So, these include work in progress and construction, which will subsequently be assessed as fixed assets, as well as intangible and non-current assets. When accounting, there is a certain nuance. So, in the estimated cost it is necessary to include in addition the interest that accrues on loans taken on them. Other than that, there are no other features. But if interest on the investment asset is not taken into account, then a situation may arise when the company is incorrectly evaluated with all the ensuing consequences.
Example
Suppose we have LLC Computer Consulting Center. The company acquires twelve new computers for its employees. For this purpose, the bank takes a loan of 1.2 million rubles for a period of 6 months at thirty-six percent per annum. The condition is the return of all funds and interest at the end of the term. Cash was transferred on May 27.Immediately, on this day, Computer Consulting Center LLC pays the invoice to the supplier and in a week receives all the computers from the warehouse. Preparatory work is carried out, and the company begins to work. The loan amount and interest on it are returned on August 27. And all the funds (loan body + interest) in accounting are shown as part of other expenses that were spent on investment assets. But it should be noted that this is a very simplified scheme. In reality, most likely, you will have to ensure the accounting of investment assets with monthly payments, and then collect all available data. This was quite specific information, and now let's pay attention to a more pleasant and simple general theory.
What is investing?
By this is meant a situation where a person’s money works for him. Many people go to work, perform a specific list of tasks, and receive livelihoods for it. How can I get more money than now? There are two ways to do this:
- Work harder (both qualitatively and quantitatively).
- Invest money and make them bring additional funds.
Both options deserve attention and respect. But we doubt that the reader of this article is interested in the first. After all, not everyone is destined to rise to the position of company manager, but you want financial independence. And besides, there is a clear limit to human ability to work and available time. According to the laws of physics, a person cannot simultaneously stay in two places. But our cash can indirectly circumvent this limitation. A person who invests in his future is similar to sending his representative in order to earn money. It may sound ridiculous, but it's a fact. When we have an investment asset, it allows us to receive money. And if it is profitable to sell, then you can go out and not a bad plus. A simple example is ownership of Yandex shares.
Investing is the way to a successful future
But let's get back to the representative analogy. While a person will honestly work on a salary, his money will help him become richer. In this case, the representative does not care what the sender is busy with: reading the newspaper, working, standing in traffic jam or resting at the resort. Sounds nice, right? But, alas, there are pitfalls here. Chances are good that you can lose money. Therefore, it is important to be able to understand which investment assets of an enterprise or company are trustworthy, as well as the legal entities themselves. And for this it is necessary to improve their education. Now we will open a secret, but little-known thing to the general public: we have quite a few opportunities to gain knowledge in the field of investment. Moreover, the work in this case is carried out both in the state and in the private sector by various public organizations. Therefore, if you want to get brief, but necessary knowledge, know: your aspiration can be quickly realized. And, importantly, training is free.
Where to invest?
Before directing your money you need to know where, in general, investment asset management is possible. There are many possibilities, but the most popular destinations are:
- Own business.
- Stocks.
- Bonds.
- Participation in investment funds.
Actually, this list can be continued for a long time. Each tool has both advantages and disadvantages. But no matter where the money is invested. It is much more necessary that they make a profit. It may seem extremely commonplace, but the whole investment system is built on this. Money must be profitable.
How should you not invest?
It should be remembered that a competent investment is not a gamble. You can’t invest money somewhere and hope that they don’t evaporate.Although some people act like gamblers, this is a very dangerous position. Yes, investing is risky. Warranties are not provided here. But if a promising tool is carefully analyzed, considered from the standpoint of common sense, then the probability of making a profit will depend not on personal luck, but on several very specific groups of factors.
What can not be attributed to investing?
I would like to talk about two tools that are very popular. But, alas, they cannot be attributed to investing, since to a greater extent they only contribute to the preservation of accumulated money. We are talking about deposits and real estate. In the first case, a recognized fact is the state of affairs when the money given to banks for preservation in the long run quite rarely even simply (!) Blocks inflation. Real estate is getting harder. If you get information that somewhere it is planned to build a valuable object, then you can buy land, and then sell it profitably. You can buy an apartment and rent it out, and subsequently sell it. But there are significant risks that make it unlikely to receive significant gains. So, the construction can be transferred, but there are no people willing to rent it (or they will bring it into a non-salable condition).
What should you invest in?
The best option is your job. Of course, this is very difficult, requires considerable self-discipline, organization, and knowledge. But in the future, this is the best option, since it creates a wide field for our subsequent activities, allows us to provide a high-quality family and provides other positive aspects. If there are no skills, but there is money, then they can be assigned to specialists whose tasks include managing the assets of investment funds. They invest all the funds raised in what, in their opinion, will be able to make a profit. As a rule, if these are not scammers, then they really allow you to earn money by taking a certain share for your services. If there is very little money, then you should not despair. There are specialists who are entrusted with asset management of mutual investment funds - structures for those who do not have a lot of funds. But you have to be careful. The topic itself is good. But in this area before, and now, many scammers worked, whose task was only to deceive the gullible citizens. What should be done so as not to get to them? Initially, you need to make sure that you have a license, read reviews, familiarize yourself with their activities (and see how successful they are).