Investment is something that an investor puts money in order to make his money grow. If an investor works on part-time job, then hardly earned money may be invested by him, that will make his money work for him. Investments carry various degrees of risk, that may depend on the amount of money investments, their continuance and, most importantly, the stake of return.Safer investments provide greater confidence that the investor can retain what he originally invested, although the rate of return in such cases may be lower. With an increase in the risk of investments, the investor may offer a higher rate of return, but the risk that it may lead to the loss of invested money increases or partially increases.
Based on his own budget and goals, before investing, a person must decide what type of investor he wants to become and what financial risk he is willing to accept with his money. Investments can be cash or cash equivalents, investments in fixed capital, equity investments, investments in the buying of liquid goods in commodity markets and so on.
Cash or equal to cash are referred to the most secure and confidential investments, but usually have the lowest stakes of return. They include savings profiles, time deposits, treasury bills and money market mutual funds. These investments can easily be transfered into cash.
Most banks, trust companies, credit unions, and investment organizations offer a wide range of investment possibilities for investing customers’ money. It all depends on what type of investment the client prefers according to the degree of risk, continuance, volume and other market factors.Such financial institutions have on hand consultants who are willing to help invest in banking products or in other financial attributes, which implies a fee for consulting services or paying management fees. Therefore, the investor needs to think about purposes, preferences and convenient zone before investing your money.
There exists such a type of deposit called as a term deposit. The term deposit is the placement of cash in Russian rubles or foreign currency on a bank account for a fixed term, which can range from one month to several years. Bank deposit is stored in the bank for a specified period and returned to the depositor with interest. At present, interest on deposits in Russian banks usually ranges from 5% to 12% per annum and varies depending on the term of the deposit, the amount of the deposit, the currency of the deposit and various additional conditions.