Investment is a channel of financial opportunity that allows investors to put in their capital for a certain period of time and get them back with more profits. The investment is useful for each family and everyone who looks to improve his live and live comfortable. Currently, there are many types of investments structured by highly qualified people and published by many financial institutions or banks. The investment includes many types like the following: real estate, stocks, and low risk investments.
The first type of investment is real estate funds. Real estate funds are funds that invest in real estate sector by buying real estate properties and developing them by lighting, utilities ,and general services. When the development is done, the fund’s manager sells the propprties again to the public for a good margin. The fund’s period starts approximately from one year to three and it depens from one bank to another. At the end of period , the manager gives the capital profits back to the investors and gets his commission. Conditions for real estate funds are generaly the same and have the following characteristics: closed fund, which means the investor can not get his money back until the end of period and fund’s profit, which is high in this sector.
The second investment is investment in the stock market funds. This type of fund is very common for the most investors and is considered as a flexible fund based on flexibilty of entry and exit. The nature of this fund is basically defined by by investment in the companies which are listed in the market. Every manager has his own strategy and his plan to invest the capital of fund which was gathered by many investors and placed his profit and fund’s bonus based on that. The fund’s period is classified into three categories: short term, medium term, and long term. The term of any fund is determined by the fund’s manager. In general, there is a positive relationship between the fund’s period and the fund’s profit. When the period is long, the profit for the fund will be high and reverse. There are some conditions having the same nature for stock’s fund like period term, profit rates, redemption fee, manager’s profit. The conditions are determined at the fund’s launch. This type of investment is open to all invetors and approachable by any capital.
The third type of invetsment is low risk investments or bonds. These investments are generally published by government organizations or ministries of finance for any country. The risk in this investment is always low and garuanteed by government. Also, the profits rate comes low and related to the period of bond’s period. The conditions on these investments are accessible for the public and have a special markets which allow the investors to buy and sell the bond quickly and easily. The common period for government’s bonds is from 1-7 years.
In conclusion, as I mentioned previously , the investment concept is a critical matter for most of us and for our futures. Each type of investment has its own conditions and its requirements. But in my opinion, the investment in real estate is good for the investors who have big capital and are patient. For the people who have good income, the investment in low risk bonds is a good choice due to the rate of risk. Finally,my recommendation is to invest in stock funds is for people who have no idea about the market and are looking for quick profits.
Prepared by:
Munif
56 minutes ago
Hi Munif, this is Wataru.
ReplyDeleteThis is an interesting topic.
Exactly, it is one of the ways of getting money easily. Actually in Japan, a concern for investment is increased in this few years. Especially the most famous one is the investment in the stock market. As you said, it seems to be easier to invest for amateur. Because of a spread of the internet, investment became closer for people and it helps them to gain a pocket money without working. And the increasing numbers of retirement have boosted older person to pay attention for investment for their living. Moreover, companies also serve more financial products related investment, so their interests get together and the numbers those who join a trading have increased. I have no objection for their choice.
But I hove some fears for the real estate. As you said that if we live by income from investment, we will be able to have more leisure time as long as we have laptop and cell phone. It sounds good that all we have to do is check the target and click, but it has risks to lead “the bursting of the bubble economy” like Japanese society experienced about 15 years ago. Sometimes investments cleat an insubstantial value; its price would not be estimated fair value. And once the consumer appetite declines, asset prices fall and it leads the deflation which causes a depression. I know investment is one of requirements of the market economy, so hopefully, it will be invested without feverish mood.