Where to invest: the most profitable investment

Everyone dreams of a comfortable life and is always looking for a way to increase their savings. Television, radio and the Internet helpfully tell us about the many options for passive earnings.

Some offers deserve attention, while others are a clear hoax and are aimed at enriching only one person - the advertiser. How to figure out where you can invest money? Where can I really earn? In this article we will look at various investment tools and tell you where to invest in 2014.

Bank deposits

If you are afraid of increased risks, but want to save a certain amount, you can invest money at interest. The bank offers the simplest and most popular type of investment. Many people already out of habit put aside ten percent of their salary, thereby creating a “safety cushion” for several months in advance. An attractive side of bank deposits is their security, since each deposit of up to 700 thousand rubles is insured without fail.

However, serious investors do not consider such investments as a real way of earning. Eight or twelve percent per annum can hardly be called income if inflation grows by ten percent. But if you decide to choose this approach for diversification of funds, then it is quite justified.

Which bank to invest in? First of all, make sure that you bring money to the bank, and not to the LLC. Many novice investors face problems after the closure of various cooperatives and partnerships. The fact is that such organizations do not insure clients' deposits and are in no hurry to return their savings to citizens.

Spend your time and learn about various banks, their assets and customer reviews. Look at the sites of rating agencies and find out the forecasts about the future of several organizations. If you are still in doubt, then give preference to those banks, co-owned by the state.

The property

Most people consider this type of investment as one of the most reliable and profitable. The high cost of housing in Russia and the annual increase in apartment prices are proof of this. If you decide to invest in real estate, consider the following points:

• This type of investment is not too mobile and can freeze your funds for a long time.
• To get a decent income, you need a large start-up capital.
• Some experts consider the cost of housing in our country unreasonably high and expect in the near future a significant reduction in prices.
• Before buying an apartment, be sure to study the infrastructure of the selected area, since it will affect the cost of housing.

The advantage of this type of investment is its high security. For example, you can not be afraid that in case of default you will lose all your savings. The second positive point is the ability to receive dividends.

Remember that if you decide to invest in real estate, then it is better to do this at the initial stage of construction. When the house is completed and ready for use, the cost of apartments in it will increase several times. Wait for a favorable combination of circumstances and sell housing at the highest prices.

You can also invest in several one-room apartments and lease them, receiving monthly stable income. Thus, you not only save the invested amount, but also significantly increase it. Please note that housing located near the metro or near public transport is most in demand.

Business investment

If you don’t know where to invest, consider this option in detail. Business investment is considered the most profitable, and the risks are high only at the very beginning of the journey. In order not to lose the invested funds, do not swindle on large projects. Do not try to create a new market, as the probability of a positive result is extremely small. Choose a narrow direction where there is not much competition. Use proven schemes, since the finished business model is working properly and has long been tested by time.

Venture capital funds

This is a fairly young type of investment that appeared in the 50s of the last century. Venture funds provide loans to start-up companies and businessmen, whose activities have great potential and are innovative in nature. On the one hand, participation in such investments is a rather risky venture, and on the other hand, you get a real chance to provide yourself for life.

Venture capital funds, as a rule, are created for a period of five to seven years. Some work only with narrow areas of business, while others, on the contrary, prefer a wide field of activity. Before you invest in such a fund, carefully read the terms of the contract. Typically, investors can invest money for a long or medium term and can not withdraw it at will.

Mutual Investment Funds

What to invest in if you are not afraid of increased risks? Perhaps this option is right for you, and you entrust the management of your income to the management company. Like any type of investment, mutual funds have their pros and cons. Let's consider them in more detail:

• Accessibility - everyone can invest money, and you can start with any amount.
• Reliability - these organizations are under strict state supervision.
• Grace periods of taxation - you pay the state only when you withdraw money from the company. The tax is not collected from current transactions and operations of the fund, so it is beneficial to leave your money in the organization for as long as possible.
• Professionalism - mutual fund management is carried out by people who are knowledgeable in business and do not take unnecessary risks.
• High liquidity - if you wish, you can easily withdraw your money from the game within one or three days.
• Risks - your deposits do not have such protection as in a bank.
• Costs - you must pay the management company two or three percent per month, regardless of gains or losses.
• Lack of guarantees - no one can promise you a stable income, and you decide where to invest at interest. The only thing you can rely on is the organization’s revenue history.

Where is it better to invest money and how to choose a mutual fund? First, assess the degree of risk - the most unpredictable directions (stocks, bonds and mixed investments) bring the largest income. Secondly, do not trust all your money in one organization, but invest it in different areas of the business. Thirdly, take the time and carefully study several mutual funds in order to compare them with each other. Analyze their activities over the past five years, pay attention to the amount of funds raised, the amount of net assets and the time the company existed on the market.

PAMM accounts

Surely you heard about the Forex market and saw an advertisement that promises new mountains of gold mountains and quick enrichment. Unfortunately, people without experience and knowledge cannot last long here. And often lose large amounts. Where it is better to invest in PAMM accounts and give control to a professional trader. Usually, specialists work with your funds for 50% of the profit.

You can go the other way and learn how to work independently in the market. But keep in mind that several years will pass before you understand all the intricacies. In addition, you are likely to part with most of your savings.

How to choose a good trader? Begin by looking at the transaction history of potential candidates over the past year.Give preference to specialists who receive, albeit not a large, but stable monthly income. Find a trader who works not only with clients' money, but also with their own funds. Thus, you will be sure that a person will not take too much risk and will not leave himself without a livelihood.

Purchase of securities

Everyone knows examples of companies whose shares have grown in price by 20-40 times in a short period of time. However, no one advertises data on hundreds of bankrupt organizations and on shareholders who have lost all their savings. If you are not a specialist and do not know where it is profitable to invest money, then it is better to trust a professional manager.

Investment in precious metals

Many people consider this type of investment as one of the most reliable. But keep in mind that it is impossible to predict the rise or fall of the price of gold, platinum or silver. How to become the owner of precious metals:

• Purchase bars in a jar. Keep in mind that if you decide to sell them, you will have to pay a tax of 13%.
• Become the owner of precious coins - you can also find them in the bank.
• Buy securities secured by gold.
• Open an account that uses precious metals as a currency.

Investing in art

This is a very interesting type of investment. With a favorable set of circumstances, you can provide yourself for life. Buying a work of one talented author is much more profitable than investing money at interest in a bank or buying real estate. But the scheme can only work if you are really good at art. Buy the works of aspiring artists, writers and composers - perhaps in a few years they will cost a fortune.

Hyp investing

Investment funds with high returns promise investors from one to three percent per day. You can invest at interest and triple your fortune in a few weeks. But from what reserves do funds take such huge funds? As a rule, management builds a financial pyramid that grows by attracting new investors. The most striking example of such an organization is the infamous private company MMM.

HYIPs usually do not last very long - from a couple of months to one year. Some organizations trust deposits to traders and exist on interest from transactions. The latter option is more or less stable, but does not eliminate the possible risks.

If you are thinking where to invest at interest, it is better to choose another option. In case you want to play roulette with fate, use the following tips:

• Invest in an average amount. If you invest a small amount and are lucky, then you will worry that you spared money. Large funds should not be risked for obvious reasons.
• If you decide to take a chance, then risk extra money, not the last.
• To invest money at interest rates, you need to choose the right time. It is better to do this at the very beginning, while the pyramid is only gaining momentum - so you will have more chances to regain your savings.

Investments in Internet sites

This type of investment has appeared relatively recently, but is rapidly gaining momentum. It does not need a large start-up capital, but there is a high rate of return and regular income is possible.

How can I make money on the Internet? We list the most popular methods:

• Partnership programs.
• Contextual advertising.
• Banner advertising.
• File Sharing Systems.

To get regular profits, you can buy a ready-made Internet project or create your own. It takes quite a lot of time and effort to create your website and promote it. If you are not afraid of difficulties, then you can safely proceed to the implementation of a new project.A finished site usually already brings income to its owner and pays off in a few months or years (depending on the scope of the planned enterprise).

To make money on this type of investment, you must understand what you have to work with. Do not expect the money to go into your own hands. To consolidate the success of the site, you will have to constantly update its content, attract new subscribers and advertisers. In the event that you do not want to promote the site yourself, you can purchase a share in any project.

Investments in own development

This type of investment, unfortunately, is not so popular. Studying, continuing education courses, attending seminars and trainings do not immediately give a visible result. But over time, understanding comes that the resources received are the most profitable and reliable. Nobody will be able to take away your acquired knowledge and skills, you can apply them even in the most difficult living conditions.

Tips for novice investors

1. Start right now - if you wait for the right moment or time when extra money appears in your wallet, you will never start again. Spend at least half an hour a day on your financial education and learn how to invest your free money. Only this approach will move things off the ground and change your life for the better.
2. Set big goals - think about who you would like to see yourself in life. For example, the desire to become an investor or the owner of your own business is worthy of all praise. Perhaps now you are working for the good of the employer and exchanging your work for wages. So far, you are scared to take the first step and leave the enterprise, and this is understandable. Look for new ways to create your own business, and sooner or later you will succeed. Strive to arrange your life so that the business can work without your participation, or learn how to invest money profitably.
3. Review your income and expenses - keep tight control over your budget and only make deliberate purchases. You will be surprised, but after a while, literally from nothing, a significant amount will appear in your hands. After that, think about where you can invest money. And start a new life.
4. Motivate yourself with positive examples - if your goal is formulated as "I want to pay off my debts," then your bank account is unlikely to be replenished.
5. Communicate with like-minded people - you cannot get useful information from advertising or popular programs. Anyone who really knows how to make money does not spend his time arguing on social networks. Seek advice from specialists, read useful literature and study personal experiences of people.
6. Be open to new opportunities - from childhood we have been taught that only hard work can lead to wealth. However, with age, we begin to understand that real life does not correspond to this postulate. It’s quite difficult to live on the salary of a simple worker or civil servant, and it is practically impossible to invest money at interest at the nearest bank. So leave stereotypes in the past, do not immediately reject offers that can make a difference.
7. Do not be afraid of the wrong decisions - if you want to have a chicken laying golden eggs, then you should buy a chicken now. No one can guarantee you success in your first venture, so prepare for failure. In any case, you will gain experience that will help you avoid serious mistakes in the future.