Insurance investment companies are ... Investment and construction company

By multiplying their own and other people's financial resources by investing in any projects, investment companies are engaged. This is a relatively new concept for the domestic securities market, but the experience of foreign investors shows that this type of activity is beneficial to all participants.

Types of investment companies

Often, all investment companies are divided into two types: closed and open.

Private investors can not cooperate with closed-type organizations. Such companies consider only their own or borrowed (bank loans) finance as an instrument. In other words, the activities of closed joint-stock companies do not provide for trust management.

Organizations of the open type, on the contrary, work with the money of private investors, taking them into trust management. This means that the owner of the capital can entrust his money to the investment company in order to invest it in some project, and then return it at a profit.

Investment companies are an optimal choice for cautious and patient investors, since their activities are not characterized by high profitability indicators, but are characterized by a relatively low level of risk.

How Investment Companies Work

To attract capital from the side, investment companies sell their own shares on the securities market. The collected amount they spend on the purchase of shares, bonds and other financial instruments belonging to various enterprises and banks. Thus, receiving income from these securities, the financial and investment company can return to its investors the amount they invested with dividends. In fact, the organization is managing the funds of its customers.

A feature of the activities of investment companies can be called that they never invest all the money in shares of one or two enterprises. As a rule, there are much more investment objects. This method is a certain insurance for all participants of the process, since the loss from the price drop of one type of securities can be blocked by the profit received from the increase in the value of others.

Investment companies and funds that offer investors share participation differ only conditionally. Often they are distinguished based on the size of the organization and the amount of capital that it disposes of.

Investment activity of the company: where do they invest money

Having entrusted their "blood" management organization, the depositor may not care about whether the prices for those shares in which his finances were invested grew or fell. This involved professionals working in an investment company. Their duties include tracking trends in the securities market and making the most profitable transactions that will bring the company and its customers a guaranteed profit.

Some industries of entrepreneurship are of greatest interest to investors, for example, construction, insurance, production of goods. This is due to the fact that investment companies are organizations whose activities are aimed at making a profit with minimal risk, and large firms become reliable objects for long-term cooperation. Securities with a low level of risk and with low profitability are considered the best option for placing free funds.

Insurance Investment Company

For many domestic depositors, earnings with the help of insurance investment companies remain a new and unusual type of activity. Investing in insurance policies is extremely popular in England, which is why this method is sometimes called English. Its essence lies in the purchase of policies or financial portfolios through the intermediary of the insurer.

The insurance investment company can act as an investment object, that is, the investor buys shares of this organization. Or it performs the tasks of a management company that manages other people's money and purchases securities of other enterprises.

For the depositor, the advantage of such a method of investing is getting the right to a number of tax benefits.

Features of the investment and construction company

Organizations that deal with the design and construction of various buildings and other facilities and at the same time attract financial resources from outside are called investment and construction companies. Let us dwell on this issue in some detail.

Investment and construction company allows investors to participate in the construction of buildings for various purposes: cottages, multi-storey buildings, industrial and commercial facilities. The duty of such an organization is to ensure that the construction is carried out legally, with the observance of the necessary norms and rules (the availability of licenses and work permits, approval and approval of projects).

Investment and construction company is much more attractive for investors than other organizations. Indicators of its profitability are quite high, and the risk is relatively small.

Open investment companies: types

Proceeding from the fact that a private investor is only able to cooperate with an open investment company, he should know about the main types of this structure. There are three types of organizations that are able to manage the financial resources of their customers:

1. Really managing the funds of customers.
2. Hiding information about the nature of its activities.
3. Do not lead any investment activity.

Real trust management

A management investment company with real trust management is an organization that really cares about efficient management of the money of its depositors. The operations they conduct on the market are reliable and can be confirmed in fact. The usual practice of such companies is to provide clients with reports, monitoring or accounts themselves. Investors cooperating with such a company, in 90% of cases, see exactly the income that was earned by their means.

Investment companies with pseudo-trust management

Specificity of such organizations is that they are not interested in real investment, and the profit shown to investors is not reliable.

Their words can not be checked in any way, and the documents provided as evidence of the conducted operations reflect only a small part of the real picture. Often such companies go down to falsification of reports, steymenov and other documents. Their main goal is to convince customers of the high efficiency of their activities. A tool for persuasion can be a small number of real documents that confirm their investment activities. For example, about 20% of the funds they invest in shares, but the rest remain motionless to lie on the account.

In the vast majority of cases (80%) as a profit, investors receive money from other investors.

Financial pyramid: characteristics and main features

The third type of open-ended investment company includes organizations that are not at all engaged in buying and selling financial instruments.

Regrettably, today such a type of investment organizations is the most common. Their employees do not even try to forge reports and monitoring to prove the legitimacy of their activities to the depositors. Organizers of some such companies directly inform their clients that they are invited to participate in the financial pyramid. The rest prefer to hide this fact, avoiding direct answers or resorting to outright lies. Declaring that their investment companies are not a financial pyramid, they are not able to provide any convincing evidence.

The profit they show to investors is 100% of the funds contributed by other customers.

How to choose an investment company

Thinking about cooperation with organizations in order to protect their finances from the impact of inflation and at the same time to earn, it is worthwhile to carefully consider the choice of the company. Experts argue that you can get a good profit even by participating in the financial pyramid. But such activities are considered very risky and require specific knowledge and skills.

If the depositor is interested in a long-term cooperation with the firm, he should choose his company of the first type.

To the elementary recommendations, allowing to weed out obvious unreliable partners, it is possible to carry an audit of the reputation of the organization. A lot of useful information can be given even by a superficial study of how long these or other investment companies work on the market. Comments and comments left by customers, as well as willingness to provide advice will allow a potential investor to form an opinion on the quality of service and the company's service policy.

Profit or calm?

The lower the risk level, which is characterized by the activity of the investment company, the less profit will be received from the investments. In addition, it will have to wait a long time.

However, this significantly simplifies the management of investment, which is perfect for novice investors. Such types of deposits are often chosen by people who do not view investing as an opportunity to receive basic income. Cooperation with companies that are characterized by a low level of risk helps to understand the essence of investing and navigate the securities market.

Higher profits are promised to limited liability companies (LLCs). An investment company whose activity is to carry out more risky operations with securities can bring to its customers either a good, quick profit or loss.

For successful cooperation with such organizations, investors need a set of special knowledge, including various aspects of the stock market.