Investment
Investment is the investment of money in a project or economic activity. Investment is divided into two main types: real investment and financial investment. Real investment is the investor's right to own something tangible, such as machinery, land, and real estate, while financial investment is the investor's ownership of a written contract on paper that gives him certain rights according to the contractual terms in the contract. It is worth noting that financial investment is not an alternative to real investment, but rather complements and finances it. For example, when borrowing a sum of money from a real estate bank, then adding the borrowed amount to the saved money, then buying a property, this investment began with a financial investment and ended with a real investment, because the property is a tangible property. During this article, we will present ways to invest money.
Ways to invest money
Real Estate
There are two ways to invest in real estate:
- Direct route: This is done by purchasing real estate such as land and buildings, or by building a property.
- Indirect route: This is done by investing in real estate investment funds, and these funds invest Money earned On it, from financing or purchasing various properties.
Precious metals
Investing in precious metals such as silver, gold, and platinum is considered a real investment that is commonly used, as it is invested in through direct buying and selling, in order to benefit from price changes. It is worth noting that By mentioning Gold is one of the most valuable metals to invest in, and its prices have witnessed sharp fluctuations since the beginning of 1970 until the present time. This is due to several factors, including high rates of economic inflation and numerous problems in the global banking and financial systems.
Economic projects
It is done through direct investment in manufacturing, trade, agriculture, or by providing services to citizens such as communications. What distinguishes this method of investment is that it is real and leads to the production of added value that is positively reflected in the size of the national product.
Investment funds
This project represents general investment portfolios, allowing every investor to participate in it, by purchasing a number of shares offered by the fund, and these shares represent capital The Fund, it is worth noting that these funds are formed by insurance companies, commercial banks, or portfolio management companies.
foreign currency
During this investment, financial currencies are exchanged through what is called the exchange rate, which is determined by the demand for the currency and the supply conditions. The exchange rate is characterized by its extreme sensitivity, because it is greatly affected by global economic and political conditions.