Today I want to analyze a rather important question: what is investment? In my opinion, it is very dangerous to switch to the practice of investing without knowing the theory, therefore, any person who wants to become an investor and receive passive income, first of all, must clearly understand what exactly he is striving for. In this post I will describe essence of investment, their difference from other similar economic categories, I will tell you what are types of investments.

So what is investment.

The essence of investment.

Investments Is an investment of monetary or tangible assets in various projects and financial instruments in order to generate passive income.

Investor Is a private person or business entity making investments.

Traditionally, the concept of "investment" was identified only with long-term investments of capital and other assets, but recently, due to the unstable economic situation in the world and the country, the long-term factor is gradually losing its relevance.

Investment object- this is the project or asset in which the investor invests his capital.

Investment subject- this is the investor.

Investment capital Is, accordingly, the capital that is invested.

Investment income- this is the passive income that the investor receives from his investments.

Investment period (investment period)- this is the period for which the investor plans to invest his capital. In some cases, it may not be defined, or investments can be made on an ongoing basis (forever).

Payback period- this is the period for which the investment income is equal to the amount of investment capital. Payback period and investment period are not the same!

In other words, investing is the art of increasing your personal capital, it is the ability to make your money bring you new money. I specifically called investing art. The fact is that, in my opinion, learning how to invest wisely is not so easy. You can study a lot of literature on investing, invest in the way recommended by the most successful investors, who have earned more than one million dollars, and go bankrupt. Just like, for example, you cannot learn to drive by reading many books on teaching driving, or you cannot become an opera singer by reading how to sing correctly. Therefore, I believe that investing is really an art, which is not given to everyone to learn. And the learning process here is necessary not only theoretical, but also practical, including inevitable mistakes and losses.

To illustrate what an investment is, I will give you an example. Let's say a person buys a chicken that lays eggs to him. A person sells all laid eggs and makes money on it. In this example:

- a person is an investor, a subject of investment;

- a chicken is an investment object, an investment asset;

- the cost of the chicken - investment capital;

- proceeds from the sale of eggs - investment income;

- hen's life period - investment period;

- the period for which the proceeds from the sale of eggs will equal the cost of the chicken - the payback period of the investment.

Please note that it is necessary to take care of the chicken, feed it so that it lays eggs better, both quantitatively and qualitatively. To sell eggs, too, you need to make some effort. However, all this is much easier than if a person had to somehow carry eggs himself.

Return and risk of investments.

The investment process is always inextricably linked with two essential characteristics:

1. The level of profitability.

2. The level of risk.

Moreover, these characteristics are in direct proportion to each other.

The higher the expected level of return on investments, the higher the risk of their investment, and vice versa. The essence of investment always involves risks. There are no absolutely risk-free investments at all! Therefore, if you are told that a project does not involve risks, they just want to deceive and mislead you.

As a rule, the exact return on investments is never known, so we can only talk about the predicted return. In addition, in many cases, profitability is not guaranteed at all, as well as return on investment, so the investor invests money at his own risk, based on the projected level of profitability.

The main task of the investor is to select such investment objects that would optimally combine these two characteristics: the level of profitability and the level of risk. It is generally pointless to invest in super-risky projects with a low level of profitability, and in projects in which the risk of investing is minimal, but the profitability is close to zero as well.

Investment portfolio.

To protect personal capital from losses, it is much better to invest not in one specific asset, but in several diverse ones, thereby creating an investment portfolio and conducting it.

Investment portfolio (investment portfolio) Is the aggregate of all investments of one investor. The more investment objects include a portfolio of investments, and the more diverse they are, the more the investor's capital is protected from losses, because if one of the investments is lost, the rest will give a profit that will cover the loss. In addition, the wider the investment portfolio, the less likely it is that all investments will "go bankrupt" at once.

Investment has something in common with lending and capital investment, but these economic categories are still different from each other. Let's take a closer look at these differences.

The difference between investment and lending.

The investment process has a lot to do with the lending process. In both cases, the investor or creditor transfers their capital to another entity for a certain period, planning to receive passive income from this. But there are also significant differences:

- Lending involves the obligatory return of the loan, but investments are not, they may not return, the investor acts at his own peril and risk;

- Lending assumes a well-defined rate of return indicated in the loan agreement, while investment income is a value that is usually inaccurate and predictable;

- Lending in most cases involves the payment of interest on the loan immediately, from the first month of using the loan, and investment income can begin to flow after a much longer period;

- The loan must be repaid, regardless of whether the loaned project will bring profit, and investments will begin to generate income only if the investment project turns out to be profitable.

The difference between investment and capital investment.

Investments also have a lot in common with capital investments, but here, too, significant differences can be distinguished:

- Capital investments do not imply a return on the invested capital at all, despite the fact that they also have their own payback period, and investments imply;

- Capital investments are made in fixed assets (buildings, structures, equipment, transport, etc.) and in large volumes, and investments can be made in any assets and in any volume.

In principle, this is the main thing that I wanted to say about the essence of investments, and now I want to consider the main types of investments.

Types of investments.

Depending on the different parameters, you can carry out different classification of investments.

Types of investments for the investment object.

1. Real investment:

- investments in tangible assets (capital investment in real estate, equipment, transport, land, construction, reconstruction, etc.);

- investments in intangible assets (capital investment in intellectual property: licenses, patents, trademarks, copyrights, research and development, education, professional development, etc.);

2. Financial investments:

- direct investment (investment of capital in an enterprise in order to be able to influence its activities, for example, the acquisition of a package of securities that gives the right to vote);

- portfolio investments (capital investment in securities, mutual funds, enterprise funds solely for the purpose of obtaining passive income in the form of a share of the company's profit);

3. Speculative investment- capital investment in securities, currency, precious metals, non-identified goods quoted on world exchanges (oil, gas, grain, metal, etc.) solely for the purpose of speculative earnings on the change in the value of these assets.

Types of investments by investment period.

1. Long-term investments (over 3 years);

2. Medium-term investments (for a period of 1 to 3 years);

3. Short-term investments (for up to 1 year).

Types of investments by the form of ownership of the investor.

1. Public investments;

2. Commercial investments;

3. Mixed investments;

4. Private investment.

Types of investments by regional basis.

1. Investment within the country (domestic investment);

2. Foreign investments.

Types of investments by the level of risk of the investment strategy:

1. Conservative investments;

2. Moderate investment;

3. Aggressive investment.

There are other classifications of investments, but I think that these types will be sufficient. Moreover, on the Financial Genius website, we will only talk about some of these types. So, we will be interested in private investments by the form of ownership, as well as financial and speculative investments in the investment object.

As with any responsible business, and even more so with the need to invest personal capital, the investment process requires a competent and professional approach, which always begins with the study of theoretical foundations. However, you should understand that investment theory alone is not enough for successful money management, although it can undoubtedly become a good foundation for future practice.

This is all that I wanted to say today about the nature and types of investments. In conclusion, I want to add that investing today is, in my opinion, the only chance to pass, reach a good level of passive income and become financially free. Many successful investors around the world say the same, for example, Robert Kiyosaki in his book.

I will end on this. After you have mastered the essence of investment, you can move on to studying more complex articles on investing, and, of course, gradually begin to apply the knowledge gained in practice. I wish you a successful and profitable investment! Stay on - this site will help you establish effective personal finance management and become a successful investor.

In the most general sense, investments should be understood as financial and other means used to obtain a certain positive result (economic, social, intellectual, defense, etc.). This definition goes far beyond the economic interpretation, which in a broad sense interprets the word "invest" as "part with money today in order to get a large amount of it in the future", or an investment is the use of money to make big money, to generate income or achieve capital gains, or both. Our definition covers the economic view of investments as a means of building up the captain, as well as the view of them as a means of achieving non-economic goals by the investor. For example, the state, investing budgetary funds in the development of astrophysics, hardly counts on making a profit, and there are many such examples. Thus, it is necessary to distinguish between the general (in the broad sense) and the economic (in the narrow sense) definition of the concept of investment. The first of them is based on the expectation of the invested funds to achieve not only economic, but also other goals. The second reduces the investment goals to the increment of the invested funds. In the literature, you can find various variants of the groups of definitions indicated by us.

An example of a general definition is the interpretation of the concept of investments in the Federal Law "On investment activities in the Russian Federation carried out in the form of capital investments": "Investments - cash, securities, other property, including property rights, and other rights that have a monetary value invested in objects of entrepreneurial and (or) other activities in order to obtain profit and (or) achieve another useful effect. " Capital investments are defined as investments in fixed assets (fixed assets), including the costs of new construction, reconstruction and technical re-equipment of existing enterprises, the acquisition of machinery, equipment, tools, inventory, design and survey work and other costs. Thus, in its most general form, investments represent the costs (expenditure) of everything that has a value estimate, in the name of achieving certain economic and other goals. The concept of investment is broader than the concept of capital investment, but narrower than the concept of costs (costs, expenses). Costs are one-time and recurring. The former relate to investment costs, since they are long-term, the latter - current, continuously recurring costs - are not investment. For example, in the production process, current costs are concentrated in the cost of production, which includes the cost of labor, depreciation, materials, etc.

The use of investments occurs through the implementation of investment projects aimed at achieving certain, clearly defined goals and representing a set of measures and actions that do not contradict the legislation for the implementation of a certain amount of investment to achieve specific goals (results) within a specified period of time.

A somewhat different (but identical in meaning) formulation of the concept of an investment project in relation to capital investments is given in the aforementioned Federal Law "On investment activities in the Russian Federation carried out in the form of capital investments" investments, the necessary project documentation developed in accordance with the legislation of the Russian Federation and standards (norms and rules) approved in accordance with the established procedure, as well as a description of practical actions for making investments (business plan). In addition, the law introduces the concept of a priority investment project (IP), which is understood as an investment project with a total volume of capital investments that meets the requirements of the legislation of the Russian Federation, included in the list approved by the Government of the Russian Federation.

The practical implementation of any investment project is unthinkable without collective or individual purposeful activities aimed at solving the tactical and strategic tasks set in the project. This is the essence of investment activity, which in the above-mentioned law is interpreted as an investment and implementation of practical actions in order to make a profit and (or) achieve another useful effect. It is hardly necessary to overload, as is sometimes done, the concept of investment activity by listing the types of work that are performed in the process of selection, implementation and operation of I.P.

The concepts of investment and individual entrepreneurs are closely related to the concepts of the subject and object of investment activity. Under subject of investment activity means individuals and legal entities that carry out targeted actions to solve the tasks set in the IP. Subjects of investment activities are investors, customers, contractors (performers of work), users of investment activities and other individuals and legal entities involved in the implementation of IP. Legislatively the subject of investment activity is granted the right to combine the functions of two or more entities, unless otherwise provided by an agreement and (or) a government contract concluded between them.

Objects of investment activity are newly created property of various types of enterprises and organizations in the production and non-production spheres, securities (shares, bonds, certificates, etc.), scientific and technical products, property rights and intellectual property rights, cash deposits.

Numerous types of investments are classified according to the following main classification criteria:

• by objects of investment activity;
• terms of investments;
• forms of ownership;
• sources of funding;
• territorial focus;
• industry focus;
• spheres of the economy;
• the nature of participation in the investment process;
• opportunities to participate in management, etc.

In the typology of investment, the main one is the classification of investments by objects of investment activity (or by objects of investment). On this basis, real and financial investments are distinguished (Fig. 1.1).

Real (capital-forming) investments are subdivided into tangible and intangible. The former include investments in tangible objects - in buildings, structures, machines, equipment, etc., the latter (potential, sometimes called intellectual) - this is an investment in the acquisition of patents, licenses, payment for research and development, the implementation of retraining and improvement programs. staff qualifications, etc. In statistical practice, real investments are called investments in non-financial assets, which are recorded for the sector of non-financial enterprises in accordance with the methodology of the International Monetary Fund.

Rice. 1.1. Classification of investments by investment objects

Financial investments - this is an investment in stocks, bonds, bank deposits, investment certificates and other securities. Financial investments are divided into direct (in real assets), portfolio and others. The first includes investments in shares of joint-stock companies in order to receive dividends and acquire the right to participate in management. These are investments made by legal entities and individuals who fully own the organization or control at least 10% of the shares or the authorized (pooled) capital of the organization. Portfolio investments include investments in different types of securities belonging to different issuers in order to increase the likelihood of receiving income from invested funds. These include the purchase of stocks, shares, bonds, bills of exchange and other debt securities. They make up less than 10% of the authorized (pooled) capital of the organization. Investments that do not fall under the definition of direct and portfolio investments are indicated as others - trade loans, loans from foreign governments guaranteed by the Government of the Russian Federation, other loans (loans from international financial organizations, etc.), bank deposits.

The ratio in the country's economy between real and financial investments is an important indicator of economic development. “In primitive economies, the bulk of investment is real, while in modern economies, most investment is financial investment. The high development of financial investment institutions contributes significantly to the growth of real investments. Typically, these two forms are complementary rather than competing. "

The structure of investments in the Russian economy is undergoing changes characteristic of a country with developing market relations. This is evidenced by the dynamics of investments in non-financial assets (real investments) and financial investments, which have been accounted for by Rosstat since 1995 according to the methodology of the International Monetary Fund.

Unfortunately, the Russian statistical yearbook lacks data on the volume of investments in intangible and other non-financial assets. But, taking into account the fact that almost 98% of investments in non-financial assets are investments in fixed assets, we will compare the dynamics of the volume of the latter with the dynamics of financial investments.

Table 1.1 presents data showing how the volume of investments in fixed assets and financial investments of organizations changed in 2000-2009.

During the period under review, the volume of investments in fixed assets increased almost 19.5 times, and the volume of financial investments increased more than 123 times. In 2009, the volume of financial investments exceeded the volume of investments in fixed assets by more than 2.8 times. The trend of outstripping growth of financial investments in comparison with the growth of investments in non-financial assets in Russia will obviously continue in the near future as the securities market develops.

According to the terms of investments, investments are divided into short-term (for a period of up to one year), medium-term (from one to three years) and long-term (for a period of more than three years).

By forms of ownership, they usually distinguish state, private, foreign and mixed investments. This does not exhaust all forms of ownership, therefore, in statistical practice, the given criterion is distinguished by municipal investments, investments of consumer cooperatives, public and religious organizations (associations). In addition, mixed investments are subdivided into mixed Russian and joint Russian and foreign. In our opinion, when classifying according to this criterion, it is necessary to distinguish federal and property of the constituent entities of the Russian Federation from the composition of state property.

Table 1.1 Dynamics of investments in fixed assets and financial investments for 2000-2009

Rice. 1.2. Classification of investments by forms of ownership

In statistical practice, various classifications of investments are used according to the directions of their use, for example, investments in fixed assets can be classified by forms of ownership, by sectors of the economy, etc.

On a territorial (regional) basis, it is necessary to distinguish internal investments made in domestic objects, which, in turn, are differentiated by regions of the country; external (foreign) investments made abroad.

By spheres of the economy, production and non-production investments can be distinguished.

In the literature, investments are classified in different ways according to the degree of investment risk. According to one classification, the given criterion distinguishes between aggressive, moderate and conservative investments. The first of them are characterized by high profitability, low liquidity and a high degree of risk. Moderate investments are characterized by a moderate degree of risk, while conservative investments include investments with high liquidity and low degree of risk.

Another classification of the given criterion is high-yield, medium-income, low-income and non-profitable investments 1.

As part of investments, the so-called autonomous investments are distinguished, which are not associated with changes in the level of income. These include a significant proportion of long-term public investment, public investment and investment that is a direct consequence of invention.

These investments must be distinguished from investments of the same name when classifying investments according to the compatibility of their implementation. This attribute is distinguished by independent (autonomous) investments that can be realized as independent of other investment objects in the general investment program of the enterprise, interdependent, the sequence of implementation or subsequent operation of which depends on other investment objects, and mutually exclusive, which require an alternative choice 1.

Investments (capital investments) in the main captain are also classified according to the sectoral purpose of the facilities under construction:

• production facilities;
• agricultural facilities;
• objects of transport and communication;
• housing construction;
• geological exploration work;
• objects of the social sphere (institutions of health care, education, culture, trade, etc.).

In international practice, investments are distinguished: venture, direct, portfolio and annuity. Venture capital includes investments directed to individual entrepreneurs. having a high degree of risk: to direct - investments in fixed assets of enterprises and organizations of the production and non-production spheres. We have already considered the concept of portfolio investments. An annuity includes investments that generate income for the depositor at regular intervals.

Investment structure

Real (non-financial) investments are most often subdivided into two groups: tangible (tangible) and intangible. In domestic statistical practice, it is customary to distinguish in the structure of investments in non-financial assets:

• investments in fixed assets;
• investments in intangible assets;
• investments in other non-financial assets;
• costs for research, development and technological work.

Fixed capital investments include all costs for the creation and reproduction of fixed assets, which include: new construction. expansion, as well as reconstruction and modernization of facilities that lead to an increase in the initial value of facilities and are attributed to the additional capital of the organization, the purchase of machinery, equipment, vehicles, the cost of forming the main herd, growing perennial plantings, etc. Since 2001, investments in fixed assets are accounted for without value added tax.

Investments in intangible assets, according to the classification of Rosstat. include objects of intellectual property: patents, copyrights, business reputation of the organization, etc.

TO investments in other non-financial assets included the costs of acquiring land plots, natural resources and other non-financial assets. The costs of acquiring land plots and natural resources are reflected on the basis of documents issued by state bodies for land resources and land management in accordance with paid or accepted invoices.

Investments in research, development and technological work include expenses related to the performance of work reflected in accounting as investments in non-current assets, for which results are obtained that are subject to legal protection, but not formalized in the prescribed manner, or for which results are obtained that are not subject to legal protection in accordance with the norms of the current legislation. In the structure of investments in non-financial assets, investments in fixed assets account for the greatest weight, as can be seen from Table. 1.2, which shows the dynamics of this structure for the period from 2000 to 2009.

Table 1.2 Structure of investments in non-financial assets * (in% of total)

	Investments in non-financial assets. ** total	Including
		fixed capital investment	investment in intangible assets	investments in other non-financial assets	costs for research, development and technological work

Without small businesses and parameters of informal activities.

Without investment in the growth of inventories.

Other classifications of real investments can also be used. For example, J. Blech and U. Goetze recommend real investments on the basis (criterion) of their reasons to differentiate into investments for creation, current and supplementary (Fig. 1.3).

Investments to create invested in the opening of a new enterprise or a branch of an existing one. Current investment are sent for routine and overhaul repairs and for replacement (renewal) of the fleet of machinery and equipment. Complementary investments are directed to the development of production and ensuring safety at the existing production facilities of the enterprise.

Similar in structure to the above classification is the classification of the life cycles of an enterprise. In accordance with this feature, initial investments (net investments) are allocated - for the creation of an enterprise: extensive - for the expansion of an existing enterprise; reinvestment - for the reproduction of fixed assets at an operating enterprise.

At the enterprise level, real investments can also be classified according to its functional areas: material and technical supply, production, sales, etc.

Another classification used at this level provides for the allocation of the following groups of investments: equipment replacement, equipment modernization, production expansion, diversification and strategic investments.

Rice. 1.3. Types of real investments by the criterion "reason for investment"

Investment in efficiency gains. Their goal is, first of all, to create conditions for reducing the costs of the company by replacing equipment, training personnel or moving production facilities to regions with more favorable production conditions.

Investments in increasing production capacity. The task of such investment is to expand the possibilities of producing goods for previously formed markets within the framework of already existing industries.

Investments in the creation of new production facilities. Such investments are intended to ensure the creation of completely new enterprises that will produce goods previously not manufactured by the company (or provide a new type of service), or allow the company to attempt to enter new markets with previously produced goods.

Investments to meet the requirements of government agencies. This type of investment becomes necessary when a firm is faced with the need to meet the requirements of the authorities in relation to environmental standards, or product safety, or other operating conditions that cannot be ensured by only improving management.

Such a classification of investments is based on the different level of risk characteristic of each of the listed groups.

From the point of view of the investment strategy of the enterprise, it is also recommended to single out passive investments, which ensure, at best, non-deterioration of the indicators of profitability of investments. and active, which ensure an increase in the competitiveness of the enterprise.

Investments- this is the investment of the subject's capital in something to subsequently increase its income.

A necessary link in the process is the replacement of worn-out fixed assets with new ones. At the same time, the expansion of production can be carried out only through new investments aimed not only at creating new production facilities, but also at improving old equipment or technologies. This is what makes the economic sense of investment.

Investments are viewed as a process that reflects the movement of value, and as an economic category - economic relations associated with the movement of value invested in fixed assets.

Aggregate costs- this is a long-term investment in various areas of the economy, implemented in the form of a targeted investment of capital for a certain period in various sectors and spheres of the economy, as well as in objects of entrepreneurial and other activities to generate income. The very concept of "investment" means investing capital in a sector of the economy, not only at the enterprise, but also within the country and abroad.

Investments Is saving money for tomorrow in order to be able to get more in the future. One of the parts of investment is consumer goods, they are deposited in stock (investments to increase stocks).

But the resources that are directed to the expansion of production (the acquisition of buildings, machines and structures) are already another part of the investment.

2. Classification and types of investments

Investments are divided into:

1) intellectual ones are aimed at training and retraining specialists in courses, transferring experience, licenses and innovations, joint scientific developments;

2) capital-forming - the cost of major repairs, the acquisition of land;

3) direct - investments made by legal entities and individuals who have the right to participate in the management of the enterprise and fully own the enterprise or control at least 10% of the shares or share capital of the enterprise;

4) portfolio - not giving the right to investors to influence the work of firms and companies, invested in long-term securities, purchase of shares;

5) real - long-term investments in the material production sector;

6) financial - debt obligations of the state;

7) tezavratsionny - this is the name of investments carried out with the aim of accumulating treasures. These include investments in gold, silver, other precious metals, precious stones and articles thereof, as well as in collectible items.

A common feature of these investments is the lack of current income on them.

Profit from such investments can be obtained by the investor only due to the growth in the value of the investment objects themselves, that is, due to the difference between the purchase and sale prices.

For a long time, in our country, this type of investment was practically the only possible form of investment, and until now, for many investors, it remains the main way of storing and accumulating capital.

Signs investments are:

1) making investments by investors who have their own goals;

2) the ability of investments to generate income;

3) the purposeful nature of capital investment in investment objects and instruments;

4) a specific investment period;

5) the use of various investment resources, characterized in the process of implementation by demand, supply and price.

By the nature of the formation of investments in modern macroeconomics, it is customary to distinguish between autonomous and induced investments.

The formation of new capital, regardless of the rate of interest or the level of national income, is called autonomous investment.

The emergence of autonomous investments is associated with external factors - innovations (innovations), mainly associated with technological progress. The expansion of foreign markets, population growth, as well as coups and wars play a part in this appearance.

An example of autonomous investment is investment by government or public organizations. They are associated with the construction of military and civil structures, roads, etc.

The formation of new capital as a result of an increase in the level of consumer spending falls under the induced investment.

The first impetus to economic growth is provided by autonomous investments, causing a multiplier effect, and already being the result of increased income, induced investments lead to its future growth.

It would be wrong to associate the growth of national income only with productive investment.

Despite the fact that they directly determine the increase in production capacity and output, it should nevertheless be noted that this growth has a significant, albeit indirect impact, also of investments in the sphere of intangible production, and the global trend is that their importance in further increase in economic potential increases.

Funds held for investment are mainly in the form of cash.

There are costs associated with fixed assets, which are clearly divided into categories related to either capital costs or ordinary production costs.

Capital costs typically include:

1) additions: new fixed assets that increase production capacity without replacing existing equipment;

2) renewal or replacement of equipment purchased to replace the same fixed assets, approximately the same capacity;

3) improvement or modernization of capital costs leading to the actual replacement or change of fixed assets.

Production costs include: maintenance and repairs, depreciation, insurance, taxes, property.

Investments are made through lending, direct cash expenditures, purchase of securities.

From a financial point of view, the goal of capital expenditure analysis is to avoid unnecessary capital expenditures by appropriately planning and budgeting capital expenditures. This requires: constant updating of means of production, identifying the need for replacement or improvement of equipment.

Do not wait, even if it may work for several more years, the final wear and tear of fixed assets can be dangerous.

It is extremely important to have the means to finance capital expenditures without jeopardizing the long-term financial plans of the enterprise.

Investment resources Are all produced means of production. All types of tools, machines, equipment, factories, warehouses, vehicles and sales network used in the production of goods and services, and their delivery to the end consumer.

Investment goods (means of production) differ from consumer goods. The latter satisfy needs directly, while the former do it indirectly, ensuring the production of consumer goods.

When referring to money that is used to purchase machinery, equipment and other means of production, managers often refer to "money capital". Real capital is an economic resource, money or financial capital, machinery, equipment, buildings and other production facilities. In fact, investments represent the capital with which wealth is multiplied.

Investments are classified:

1) by investment volume:

a) real;

b) financial;

2) by investment terms:

a) short-term;

b) medium-term;

c) long-term;

3) for the purpose of investment:

a) straight;

b) portfolio;

4) by investment sphere:

a) production;

b) non-production;

5) by ownership of investment resources:

a) private;

b) state;

c) foreign;

d) mixed;

6) by region:

a) within the country;

b) abroad;

7) by risk:

a) aggressive;

b) moderate;

c) conservative.

According to the terms of investments, short-, medium- and long-term investments are distinguished.

Short-term investments are characterized by investments for a period of up to one year.

Under medium-term investments understand investing funds for a period of one to three years, and invest in long-term investments for three or more.

By forms of ownership, private, state, foreign and joint (mixed) investments are distinguished. Private (non-state) investments are understood as investments of funds of private investors: citizens and enterprises of non-state ownership.

Public investment- these are state investments carried out by the authorities and administration, as well as by state-owned enterprises.

They are carried out by central and local authorities and administration at the expense of budgets, extra-budgetary funds and borrowed funds.

The main investments include investments of funds of foreign citizens, firms, organizations, states.

Under own (mixed) investments understand the investments made by domestic and foreign economic entities.

By regional This feature distinguishes between investments within the country and abroad.

Domestic (national) investment includes investment within the country.

Investments abroad (foreign investments) are understood as investments abroad by non-residents (both legal entities and individuals) in objects and financial instruments of another state.

Joint investments are carried out jointly by the subjects of the country and foreign states.

On a sectoral basis, investments are distinguished in various sectors of the economy, such as: industry (fuel, energy, chemical, petrochemical, food, light, woodworking and pulp and paper, ferrous and nonferrous metallurgy, mechanical engineering and metalworking, etc.), agriculture, construction , transport and communications, wholesale and retail trade, public catering, etc.

Investments made in the form of capital investments are subdivided into gross and net.

Gross investment- directed to the maintenance and increase of fixed capital (fixed assets) and stocks. They consist of depreciation, which is investment resources required to compensate for the depreciation of fixed assets, their repair, restoration to the previous level prior to production use, and from net investments, i.e. capital investment in order to increase fixed assets for the construction of buildings and structures. , production and installation of new, additional equipment, renovation and improvement of existing production facilities.

At the micro level, investment plays a very important role. They are necessary to ensure the normal functioning of the enterprise, a stable financial condition and increase the profit of an economic entity.

A significant part of investments is channeled into the social and cultural sphere, in the field of science, culture, education, health care, physical culture and sports, informatics, in environmental protection, for the construction of new facilities in these industries, improvement of the equipment and technologies used in them, and implementation of innovations. There are investments in human and human capital. This is an investment mainly in education and health care, on the creation of funds that ensure the development and spiritual improvement of the individual, strengthening the health of people, and prolonging life.

The efficiency of using investments largely depends on their structure.

The structure of investments is understood as their composition by type, by direction of use, by sources of financing, etc.

Profitability- this is the most important structure-forming criterion that determines the priority of investments.

Private sources of investment are directed to profitable industries with fast capital turnover. At the same time, spheres of the economy with low profitability of invested funds remain not fully invested.

Over-investment leads to inflation, while under-investment leads to deflation.

These policy extremes are governed by an effective strategy in the areas of taxes, government spending, monetary and fiscal measures implemented by the government.

In the reproduction system, irrespective of its social form, investments play an important role in the renewal and increase of production resources, and, consequently, in ensuring certain rates of economic growth.

In the view of social reproduction as a system of production, exchange and consumption, investments relate to the first stage of production and constitute the material basis of its development.

3. Real and financial investments

Financial investments are the purchase of securities, and real investments are capital investments in industry, agriculture, construction, education, etc.

With real investments, the main condition for achieving the intended goals is the use of the corresponding non-current assets for the production of products and their subsequent sale.

This includes the use of the organizational and technical structures of the newly formed business for the extraction of profits in the course of the statutory activities of the enterprise created with the attraction of investments.

Financial investments represent an investment of capital in various financial investment instruments, mainly securities, in order to achieve the goals set, both strategic and tactical.

Investment in financial assets is carried out in the process of investment activities of an enterprise, which includes setting investment goals, developing and implementing an investment program.

The investment program involves the selection of effective financial investment instruments, the formation and maintenance of a portfolio of financial instruments balanced according to certain parameters.

Setting investment goals is the first and determining all subsequent stages of the financial investment process. Financial investments are divided into strategic and portfolio investments.

Strategic financial investments should help to implement the company's strategic development goals, such as expanding the sphere of influence, sectoral or regional diversification of operating activities, increasing market share by “capturing” competing enterprises, and acquiring enterprises that are part of a vertical technological production chain.

Consequently, the main factor affecting the value of the project for such an investor is to obtain additional benefits for his main activity. Therefore, strategic investors are mainly enterprises from related industries. Portfolio financial investments are carried out with the aim of making a profit or neutralizing inflation as a result of the effective placement of temporarily free funds.

Investment instruments in this case are income types of monetary instruments or income types of stock instruments.

The latter type of investment is becoming more and more promising as the domestic stock market develops.

In this case, a financial manager is required to have a good knowledge of the composition of the stock market and its instruments.

Financial investments include investments:

1) in shares, bonds, other securities issued by both private enterprises and the state, local authorities;

2) in foreign currencies;

3) in bank deposits;

4) into objects of thesaurus.

Financial investments are only partially directed to increase real capital, most of them are unproductive capital investments.

In the market economy, private investments prevail in the structure of financial investments. Public investment is an important instrument of deficit financing (the use of government loans to cover the budget deficit).

Investing in securities can be individual and collective. Individual investing is the acquisition of government or corporate securities through an initial offering or on the secondary market, on an exchange or over-the-counter market.

Collective investment is characterized by the acquisition of shares or shares of investment companies or funds.

Investing in securities opens up the greatest opportunities for investors and is distinguished by the maximum variety.

This applies to all types of transactions carried out in transactions with securities, as well as the types of securities themselves.

All over the world, this type of investment is considered the most affordable.

Investing in foreign currencies is one of the simplest types of investment.

It is very popular among investors, especially in a stable economy and low inflation.

There are the following main ways of investing in foreign currency:

1) purchase of cash currency on the currency exchange;

2) conclusion of a futures contract on one of the currency exchanges;

3) opening a bank account in foreign currency;

4) purchase of foreign currency in cash at banks and exchange offices.

The undoubted advantages of investing in bank deposits are the simplicity and availability of this form of investment, especially for individual investors.

Financial investments, being a relatively independent form of investment, at the same time are also a connecting link on the path of converting capital into real investment.

Since the main organizational and legal form of enterprises are joint-stock companies, the development and expansion of production of which is carried out using borrowed and borrowed funds (issuing debt and business securities), financial investments form one of the channels for capital inflow into real production.

When establishing and organizing a joint-stock company, in the event of an increase in its authorized capital, new shares are issued first, followed by real investments. Thus, financial investments play an important role in the investment process.

Real investments turn out to be impossible without financial investments, and financial investments get their logical conclusion in the implementation of real investments.

Real investments include investments:

1) in equity capital;

2) in inventories;

3) intangible assets.

In turn, investments in fixed assets include capital investments and investments in real estate.

Capital investments are carried out in the form of investing financial and material and technical resources in the creation of reproduction of fixed assets through new construction, expansion, reconstruction, technical re-equipment, as well as maintaining the capacity of existing production.

According to the classification accepted in the world, real estate means the earth, as well as everything that is above and below the surface of the earth, including all objects attached to it, regardless of whether they are of natural origin or created by human hands.

Under the influence of scientific and technological progress in the formation of the material and technical base of production, the role of scientific research, qualifications, knowledge and experience of workers increases.

Therefore, in modern conditions, the costs of science, education, training and retraining of personnel, etc., in fact, are productive and in some cases are included in the concept of real investments.

Hence, in the composition of real investments, the third element stands out - investments in intangible assets.

These include: the right to use land plots, natural resources, patents, licenses, know-how, software products, monopoly rights, privileges (including licenses for certain types of activities), organizational costs, trademarks, trademarks, research and development -design development, design and survey work, etc.

4. Short-term and long-term investments

Long-term investments are made for a period of three or more years, short-term investments for a period of one year or more. Effective management of all areas of the enterprise ensures successful development in conditions of reasonable competition. This also directly applies to the complex process of long-term investment.

As you know, the correct and quick implementation of measures in this area allows the enterprise not only not to lose the main advantages in the fight against competitors to keep the market for its goods, but also to improve production technologies, and therefore, ensures further effective functioning and profit growth.

All major management functions are carried out within the framework of a single strategic plan designed to ensure the implementation of the master concept.

The importance of strategic planning cannot be overstated. The management of such spheres of activity as production, sales, investment, requires consistency with the overall goal (general development concept) facing the enterprise.

Allocation of resources, relations with the external environment (market knowledge), organizational structure and coordination of the work of various departments in one direction allows the company to achieve its goals and make optimal use of available funds.

The choice of investment development paths within the framework of a single strategic plan is not an easy task. Achievement of the set goals is associated with the development and implementation of special strategies.

Long-term investment strategy is one of them. This is a rather complex process, since many internal and external factors affect the financial and economic condition of the enterprise in different ways.

Evaluating the effectiveness of capital investments requires solving a number of different problems. But the choice of a long-term investment strategy can be realized only after conducting thorough research to ensure the adoption of the optimal option for management decisions. At the first stage of strategic planning, this approach forces a broader and more versatile look at the use of various analytical techniques and models that justify the adoption of a specific strategic direction.

Recently, the construction of models that help assess the prospects for investment development of enterprises has become increasingly popular.

Modeling allows managers to select the most characteristic properties, structural and functional parameters of the control object, as well as highlight its main relationships with the external and internal environment of the enterprise.

The main tasks of modeling in the field of financial and investment activities are the selection of options for managerial decisions, forecasting priority areas of development and identifying reserves for increasing the efficiency of the enterprise as a whole.

The use of various types of matrices, the construction and analysis of models of the initial factors of systems has gained wide popularity in long-term investment.

The production and economic potential means the availability of fixed assets and technologies corresponding to the modern level of technical development, a sufficient volume of own working capital, highly qualified management and production personnel, as well as a sufficient amount of own financial resources and the possibility of free access to borrowed funds.

Three indicators are distinguished, on the basis of which the investment strategy is selected: the production and economic potential of the enterprise, the attractiveness of the market and the characteristics of the quality of the product (works, services). Each of them is a complex indicator.

Each specific situation assumes a certain line of behavior in long-term investment.

If we evaluate them according to general criteria, such as the volume of investments, types of reproduction of fixed assets, investment time, the degree of acceptable risk and some others, it is proposed to distinguish five possible strategies for long-term investment:

1) aggressive development (active growth);

2) moderate growth;

3) improvement with a constant level of growth;

4) containment of recession and development of new products;

5) active conversion or liquidation.

The strategy of moderate growth allows enterprises to somewhat reduce the pace of their development and growth of production volumes. Now it is not required to significantly increase its production potential in a relatively short time. If this market has already been formed, then the enterprise, as a rule, must invest in the progressive expansion of its activities, as well as allocate funds to increase its competitive advantages, in particular, to improve the quality characteristics of its products, to the service sector, which will also benefit competitive struggle.

Investments - long-term capital investment with the aim of making a profit Investments are an integral part of the modern economy. Investments differ from loans in the degree of risk for the investor (lender) - the loan and interest must be returned within the agreed period, regardless of the profitability of the project, investments are returned and generate income only in profitable projects. If the project is unprofitable, investments may be lost in whole or in part.

Investment activities- investment and implementation of practical actions in order to obtain profit and (or) achieve other beneficial effect.

From the standpoint of the monetary theory of money, funds can be directed to consumption or savings. Simple saving withdraws funds from circulation and creates preconditions for crises. Investing, on the other hand, involves savings in circulation. It can occur directly or indirectly (placing temporarily free funds on a deposit in a bank that already invests itself).

Investment classification

There are different classifications of investments.

According to the investment object, there are

Real investment(direct purchase of real capital in various forms):

in the form of tangible assets (fixed assets, land), payment for construction or reconstruction;

capital repairs of fixed assets;

investments in intangible assets: patents, licenses, usage rights, copyrights, trademarks, know-how, human capital (upbringing, education, science), etc.

Financial investments(indirect purchase of capital through financial assets):

securities, including through mutual funds ( Mutual investment fund is a property complex, without the formation of a legal entity, based on the trust management of the fund's property by a specialized management company in order to increase the value of the fund's property. Thus, such a fund is formed from the money of investors (shareholders), each of which owns a certain number of shares);

loans granted;

leasing (for the lessor).

Speculative investment(purchase of assets solely for the sake of a possible price change):

• precious metals (in the form of unallocated metal accounts);

  securities (shares, bonds, certificates of joint investment institutions ...).

By main investment goals

Direct investments.

Portfolio investments.

Real investment.

Non-financial investments.

Intellectual investments (associated with training specialists, conducting courses and much more).

By investment terms

short-term (up to one year);

medium-term (1-3 years);

long-term (over 3-5 years).

By the form of ownership of investment resources

• state (capital investments);

  foreign;

  mixed.

27. Classification of investment projects of the enterprise

Investment project- a set of interrelated activities aimed at achieving the set goals in conditions of limited financial, time and other resources.

Investment classification:

from the investment object: real and financial;

by the nature of participation: direct (the investor is directly involved in the choice of the investment object, including management) and indirect (investments through an intermediary - securities, etc.);

by investment period: short-term (capital addition< года - депозитные вклады, покупка сертификатов и т.д.) и долгосрочные (>of the year);

by the level of investment risk: risk-free, low-risk, high-risk, speculative (characterize the most risky investment of capital, for which a fairly high level of investment income can be expected);

by type of ownership: private (investment by citizens and legal entities that are not state-owned), state (at the expense of the budget and extra-budgetary funds, state-owned enterprises at their own expense), foreign and joint ventures (foreign firms and enterprises of a given country together);

on a regional basis: national and foreign investments.

From the perspective of the company's management personnel, projects are classified according to the following criteria:

the amount of required investments: large, traditional and small;

Type of expected income: cost reduction, expansion income, entry into new sales markets, expansion into new business areas, reduction of production and sales risk, social effect;

type of relationship: independence, alternativeness, complementarity, substitution;

cash flow type: ordinary, not ordinary;

attitude to risk: risky, risk-free.

This is a fairly arbitrary division. For example, project size estimates depend on the size of the firm. The objectives of the assessment may vary, and the results are not always profit-making. There may be economically unprofitable projects that generate indirect income.

There are complimentary projects - if the adoption of one contributes to the growth of income on the other. This is important when accepting a project if the choice according to the main criterion is not obvious. Two projects are substitutable if the adoption of one leads to a decrease in the profitability of the other.

28 financial leverage effect(EGF)

Financial leverage characterizes the use of borrowed funds by the enterprise, which affects the change in the return on equity ratio. In other words, FR is an objective factor that arises with the appearance of borrowed funds in the amount of capital used by an enterprise, which allows it to receive additional profit on its own capital.

FR effect count on the trail. formula:

((1-n) (ER-SP) is the differential) * (ZK / SK is the lever arm)

n - income tax rate, ER - economic profitability of assets = profit before taxes / asset, joint venture - average interest rate on a loan, ZK - borrowed capital, SK - equity capital.

The coefficient allows you to set the amount of borrowed funds attracted by the company per unit of equity capital.

Classification and structure of investments

There is no consensus in the literature on the classification.

Investments should be classified as follows. featured:

1.by objects of attachment

2.investment purposes

3. by the nature of participation in investment

4. by period in investment

5. by forms of ownership invest. resources

6. on a regional basis.

(1) According to investment objects, Investments are divided into:

1) real

2) financial

(2) By investment purpose investments are divided into:

2) portfolio

(3) By the nature of participation and investment

1) direct (when the investor himself participates in the choice of the investment object)

2) indirect (investing through other persons)

(4) By investment period

1) short-term (up to 1 year)

2) long-term (more than 1 year)

Sometimes more mid-term

(5) By forms of ownership:

1) private Investments - an investment of funds, cat. carried out by FL and non-state-owned enterprises

2) state. Investments - investments made by the state. bodies at the expense of the respective budgets, VBF and borrowed funds, as well as state investments. enterprises and organizations at the expense of their own resources and borrowed funds

3) foreign investment (AI)

4) joint Investments - carried out by subjects of the country and subjects of foreign countries. states

(6) By region

1) internal (to objects within the country)

2) foreign

TO financial AND relate:

1. investments in stocks, bonds, etc. c / b, cat. issued by both private enterprises, local authorities, and state. authorities

2. investments in foreign. currencies

3.investments in bank deposits

4. Investments in tezavratsii objects

Fin. Investments are only partially directed to increase production. capital. Most of it is unproductive capital.

In the classical model of the market economy, private investments play the main role (they are the majority), and state. Investment is a deficit financing instrument.

Investments in c / b - ID direction, cat. opens up huge opportunities for the growth of K for depositors, is distinguished by a huge variety. All over the world investing in c / w is the most affordable. M. b. of two types:

Individual, when securities are purchased during the initial placement and on the secondary market

Collective (shares, shares, investment funds).

Investments in foreign currencies quite common in our country, popular in many other countries. This is one of the most popular types of investment. Ways of investing in foreign currency:

a) purchase of currency on the currency exchange (spot transactions)

b) the conclusion of futures contracts on the currency exchange

c) opening a bank account in a foreign country. currency

d) purchase of FL in cash foreign. currency in the corresponding expression.

Investments in bank deposits : for a long time in our country it was the only form of investment and now it is important, simple and affordable. The main custodian of bank deposits is Sberbank.

Investments in tezavratsii objects : tezavratsionny Investments - Investments carried out with the aim of accumulating treasures. They include:

Investments in gold

Investments in silver

Investments in other drag. metals

Investments in drag. stones

Investments in products made of them

Collectible items

Investing in gold is a classic type of investment investment, since gold is portable, has its own value. During crises, gold rises in price and is in high demand. There are many opportunities for investing in gold: purchasing gold bars, purchasing gold coins (modern or old minting), purchasing finished products made of gold, carrying out futures transactions with gold, purchasing shares in gold mining companies, purchasing investment shares. companies and funds, cat. directly related to gold.

Jewelry with precious stones. stones are also of high value, they can be purchased in the form of raw or processed dredges. stones and as finished products.

There is a high degree of costs associated with possible resale. Investments in jewelry should be made for a very long time. You need to have certain knowledge in this area.

Collection items: coins (gold and silver, with their own value), as well as rare coins - their value is higher than the cost of the metal, from cat. they are minted. This area of ​​investment is also difficult - knowledge is needed. The nature of the market is relatively narrow.

When investing in tezavratsii objects, the investor does not receive current income, the profit comes from the growth in the value of investment objects.

TO real and relate:

ü investments in fixed assets

ü investments in inventories

Investments in the main. capital is the overwhelming majority. They are divided into:

1) capital investments

2) Investments in real estate

Capital investments are carried out in the form of investments of financial and material and technical resources in the creation and reproduction of the processing plant through new construction, expansion, reconstruction, technical re-equipment and maintenance of existing capacities.

Investments in real estate : according to the world classification, real estate is earth + everything that is above and below the earth, including all objects attached to the earth, regardless of how they were created (by nature or by man).

This concept of real investment is used in the AHD and the UN SNA. But this concept characterizes real Investments in a narrow sense. In a broad sense, in the period of scientific and technological revolution, the role of scientific research, qualifications, knowledge increases, therefore all costs associated with education, science, (re) training of personnel are considered productive and in some cases are included in the concept of real Investments.

For the classical model of the market economy, it is characteristic that most of the real Investments are private Investments. The state takes an active part in the investment process, which is expressed in the state's investments directly in the state. sector and indirectly in the form of loans, subsidies, politico-ec. regulation. Main part of the state. Investment is directed to the infrastructure industry.

Gross Investment (in ek. analysis) - the total amount of funds invested, directed to the main. capital (K) and inventories.

Gross investments in main. K include:

1) resources of the fund of net accumulation of personal income, i.e. Expansion investment;

2) funds from the fund for reimbursement of consumed basic. K, i.e. Investment for renovation.

The source of the Expansion Investment is the newly created value or the so-called saved part of the net income. Entrepreneurs mobilize it at the expense of their own profits (self-financing) and in the loan capital market (borrowed and borrowed funds). The source of AND for renewal are depreciation deductions.

Net Investment - the amount of gross Investments, reduced by the amount of depreciation deductions in a certain period of time. The dynamics of the indicators of net investment is even more important and beneficial for the economy. analysis, because it testifies to the state of the economy as a whole.

If the amount of net investment is negative, then this means a decrease in production potential and the volume of output, therefore, the economy is eating up its K.

If the net Investment = 0, this means a complete absence of eq. growth, the economy is stagnant.

If the net investment is greater than 0, then the economy is in the development stage, expanded reproduction of the fixed assets.

To characterize real Investments, the following indicators are used:

Accumulation volume - the volume of value accumulations invested in K

· Investment rate = volume of Investment / GDP (GNP). It should be 25-30%.

Real Investments are associated with investments in long-term assets (more than 1 year).

1) with the implementation of capital construction in the form of new construction, expansion, reconstruction and technical re-equipment of existing enterprises in the production and non-production areas.

2) with the acquisition of buildings, structures, equipment, vehicles and other individual objects or parts of them.

3) with the acquisition of land and natural resources.

4) with the acquisition and creation of intangible assets (all rights to use land plots, licenses, know-how, software rights, privileges, trade marks, trade costs, R&D, design and survey work, etc.).

2. According to the purpose of investment, the capital is divided into:

Direct investments- capital investment from the acquisition of a long-term economic interest, which ensures the investor's control over the object of capital placement.

Direct investments include:

Equity investments by companies - capital of branches and share of shares in subsidiaries and associates;

Profit reinvestment - the share of the direct investor in the company's income, not distributed as dividends and not transferred to the direct investor;

Intra-corporate transfers of capital in the form of loans and borrowings between a direct investor, on the one hand, and subsidiaries, associated companies and branches, on the other.

Portfolio investments- capital investments in securities that do not give the investor the right to real control over the investment object.

They are divided into investments in:

§ equity securities(equity securities) - a monetary document circulating on the market, certifying the property right of the owner of the document in relation to the person who issued this document (shares, stock, participation);

§ debt securities(debt securities) - a monetary document circulating on the market, certifying the relation of the loan of the owner of the document in relation to the person who issued this document.

Debt securities can be in the form of:

§ bonds(bond), promissory note(debenture), promissory note(note) - monetary instruments giving their holder an unconditional right to a guaranteed fixed cash income or to a contractually determined variable cash income;

§ money market instrument - gives the holder an unconditional right to a guaranteed fixed cash income on a certain date: treasury bills, certificates of deposit, bank acceptances, etc.;

§ financial derivatives - have the market price of derivative monetary instruments that certify the owner's right to sell or buy primary securities: options, futures, warrants, swaps.

The main reason for making portfolio investments is the desire to place capital in securities in which it will bring the maximum profit with an acceptable level of risk.