The concept and essence of investment forms. Real and financial investments Making real and financial investments

What is real and financial investment? What investments are real investments? What are the forms of gross investment?

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Statistics show that 60% of the richest people on the planet have earned their millions through successful investing. If an entrepreneur does not invest in new projects and directions, he will face stagnation and regression. It is eaten by competitors and ignored by consumers. His business is rotting away.

The investment theory says: if you didn't buy, you sold. This means that if you do not invest in business development today, you will lose it tomorrow. The most promising financial instrument for entrepreneurs is real investment. I will talk about them in a new article.

Those who have read to the end are waiting for an overview of the most reliable companies in Russia that assist in real investment, plus tips on how to avoid the main risks when investing.

Go ahead, friends!

1. What is real investment

The company's free money that collects dust in bank accounts is lost profits.

First, they are eaten up by inflation, which in Russia averages 12-15% per year. Secondly, an enterprise that does not invest in its own development is doomed to an inevitable lag behind more efficient and enterprising competitors.

Conclusion: finances need to be invested. The most profitable direction of such investments is real investment.

The economic concept of “real investment” does not mean that there are “unreal” investments. A simple scientific classification according to the objects of the premises of funds divides contributions into real and financial. Financial investments are investments in securities for the purpose of their subsequent sale.

- investment of funds in assets directly related to the production of goods and services for subsequent profit. Real contributions are aimed at increasing the company's fixed assets, as well as their reorganization, restructuring and modernization.

Typical example

The Russian Potato company, which produces chips, wants to increase the volume of production of its main products. For this purpose, the company purchases new generation equipment from Germany, which will increase the annual number of units by 5-10 times.

This is a direct (it is real) investment in production, which - subject to a competent marketing plan and the presence of market prospects - guarantees the company an increase in profits.

Real investments are carried out by enterprises of large, medium, sometimes small businesses, government organizations, and less often investment funds. Private investors almost do not make such investments. Not because they don't want to, it's just that the amount of investment is too large for one person.

Real investments involve operations with millions and billions of dollars, aimed at extracting corresponding profits in the long term.

There are many forms of real investment:

• purchase of integral property complexes - factories, factories, workshops, agricultural farms;
• construction of new facilities;
• opening of branches, regional offices, subsidiaries;
• reconstruction with the aim of a radical transformation of production based on innovative technological developments;
• modernization of an existing enterprise - a radical renewal of the production assets of an enterprise;
• investments in intangible assets - promising start-ups, new brands, inventions and patents;
• acquisition of a new business;
• purchase of deposits for the extraction of natural resources;
• investment in research and development.

Since investments are always associated with risk, investments are possible only after a comprehensive study and consideration of all factors that may affect future profits.

How are real investments different from financial investments?

Compared to financial investments, real investments by definition have a higher return and resistance to market fluctuations. Stocks and bonds bring in a good scenario of 15-25% profit per year, and real production facilities pay off by 100% or even more.

Therefore, the risks of such investments are lower, since the money is invested mainly in material instruments. The same equipment or construction objects can always be sold. However, in comparison with securities, the liquidity of such objects will, of course, be lower.

Another difference between direct investments and financial investments is that the former are real investments in the country's economy that create a gross domestic product. Ultimately, such investments lead to an improvement in the well-being of the population, an increase in the number of jobs and other positive effects.

For this reason, the state promotes real investments and welcomes them in every possible way. A real investor is an owner who has come for a long time: to work and develop production. A financial investor is, in fact, a stock speculator who makes money on fluctuations in the securities market. Financial investments do not produce anything and do not directly benefit the economy.

Henry Ford said: “Old people always advise to be frugal and save money. As for me, until the age of 40 I did not save a cent by investing all available funds in the development of my business.

From what sources can real investments be financed - 3 main sources

Where to get money for all these economically viable and, of course, necessary and useful things?

There are 3 types of investment sources.

1) Own funds

The company's working finances are formed from profits and depreciation of fixed assets. The money that does not go to pay salaries to employees, tax deductions, maintenance of production and other urgent needs is invested in the development and growth of production.

This is the economic law. Free money must create other money. It's like in physics - the body, while it is moving, cannot fall.

2) Borrowed sources

Not enough own funds - loans are attracted. Banks are willing to give large loans to enterprises to expand and modernize existing businesses.

And if financial institutions treat start-ups and aspiring entrepreneurs rather cautiously than benevolently, then credit institutions almost always give the green light to existing enterprises.

3. How to manage real investments - 7 main steps

Real investment management is a science combined with experience, sober calculation, forecasting and intuition of a businessman. Decisions to invest company assets are rarely made by the head of the company alone, even if he is Henry Ford.

To raise funds, it is necessary to justify the need for investment, develop a phased plan, and constantly monitor the project.

Stage 1. Funding Analysis

The evaluation of an investment undertaking involves a preliminary study of market conditions and other economic parameters. It is impossible, for example, to start producing a new category of goods without studying the demand market for it.

Example

A construction company in the midst of an economic crisis decides to expand production and opens new divisions in several cities in central Russia. The company builds apartments of improved planning and corresponding cost.

Meanwhile, no one is in a hurry to acquire the erected objects due to the decrease in financial resources from average buyers. Investments "hang" for an indefinite time, when they pay off, no one knows.

Stage 2. Definition of forms of financing

Each market participant independently determines the instruments and forms of investment. For large production facilities, the main directions are the expansion and construction of new facilities.

For enterprises that occupy a local business niche, the most optimal option is the modernization and / or automation of production in order to reduce costs.

Stage 3. Clarification of the full volume of real investments

Money, as you know, loves an account. Investments especially. All reputable enterprises have financial departments that deal with economic calculations.

If there is no such department in the company, it is worth inviting third-party consultants from a reputable consulting firm. There is a detailed article on our website about what it is.

Stage 4. Selection of specific investment projects

Investment projects are selected depending on the purpose of investments and the specifics of the company's activities. Each direction has its own economic feasibility, its implementation and payback periods.

An investment project is not an abstraction.

This is a document that must indicate the following indicators:

• the purpose and timing of the investment;
• main idea of ​​the project;
• options;
• the amount of resources required for implementation;
• calculation of performance indicators.

The development of the project is entrusted to people with experience and relevant education.

Stage 5. Evaluation of the effectiveness of projects

Methodological recommendations and computational technologies, which are operated by professional specialists, will help to evaluate the effectiveness.

The investment costs and resources necessary for their implementation, as well as the amount and timing of the planned profit, are taken into account. Based on them, a performance indicator is derived.

Stage 6. Formation of a real investment program

The next stage is the development of a specific real investment program. It is necessary to draw up a step-by-step algorithm for the implementation of an investment project and estimate the costs at each stage.

Stage 7. Control over the implementation of the investment program

Competent monitoring of the investment program is the basis of success. Real investments, unlike financial ones, require the investor to be directly involved in the process. This is no longer passive income, but quite active.

It takes time to manage a project. The responsible person will have to negotiate, control the implementation of the project on the ground, and make sure that the money is not stolen. It won't be boring - these are not bank deposits and investments in stocks.

In addition, in the process of fulfilling investment tasks, it is necessary to manage the work of personnel - after all, new equipment and new facilities will be assembled by people, not mechanisms.

4. Professional assistance in real investment - an overview of the TOP-3 companies providing services

If the company's management is unable to manage investment projects on their own, they can delegate the task to professional performers.

There are firms that will help you manage free funds competently and with guaranteed profits.

Our expert review presents the most competent investment profile firms. These companies work with private and corporate depositors and obligatorily insure clients' deposits.

1) Investment Project

The financial analytical center "Invest Project" has been operating in the investment market since 2010. During this time, the company has been able to achieve the status of Russia's leading institution in the field of finance and lending. Profitability on key investments of the project is up to 70% per annum. The minimum investment amount is 50,000 rubles. This means that individual entrepreneurs and individuals with a small amount of initial capital can use the services of the company.

Interest on income is calculated monthly. The main areas of investment are construction, transport, agriculture, tourism and trade services. Employees of the company will help clients form an investment portfolio and assist in obtaining a loan.

2) FMC

The company specializes in financial investments. The company's field of activity is consulting and real assistance to citizens and legal entities on profitable financial investments. FMC clients are always aware of what they can earn right now. The income received from the proceeds is successfully moving forward - they are placed in real instruments - production, business expansion.

The main area of ​​interest of the company is direct investment in real estate. E3 Investment is a professional operator of investments in construction and ready-made objects for beginners and experienced investors. For 7 years of work, the company has already helped its clients earn more than 150 million rubles.

Each asset is protected by three types of insurance. Free consultations on the most profitable and safe investment of financial assets are available to users.

5. What are the risks of real investment projects - an overview of the main risks

Real investments are associated with many risks that cannot be ignored at the stage of developing an investment plan.

Knowing the main risks, you will be able to control them.

1) Financial risk

This type is associated with a shortage of investment resources needed to translate the project into reality, untimely receipt of money from borrowed sources, increased costs at the implementation stage.

How to avoid: calculate the amount of investment accurate to the ruble.

2) Risk of insolvency

The level of liquidity of current assets tends to decrease. As a result, the investment project has an imbalance in time between positive and negative financial flows.

Each enterprise in the process of its formation and development must determine how much equity capital should be invested in turnover. The expediency of attracting one or another financial source must be compared with the indicators of profitability of investments of this type and the cost of this source. The need of the enterprise for its own and borrowed funds is an object of planning, respectively, the decision on this issue has a direct impact on the financial condition and the possibility of survival of the enterprise.

The production and economic activities of the enterprise are the main source of profit. It is determined by the charter of the enterprise, associated with the production and sale of products (goods, works and services) and is accompanied by constant investment in inventory, fixed assets and other assets that ensure the continuity of the production process.

However, in the course of its activities, the enterprise invests not only in material, but also in financial assets that are not directly involved in the production process. Financial assets include investments of the enterprise in the authorized capital of other enterprises, as well as government and corporate securities acquired by the enterprise in the financial market.

By acquiring certain financial assets, an enterprise can solve different problems. So, by investing free funds in equity or debt securities, the company receives income from owning the latter and ensures the efficient use of free financial resources. Taking part in the formation of the authorized capital of other business entities (subsidiaries and associated firms), the company provides control over them and strengthens its competitive position in the market for the relevant products. By purchasing highly liquid securities, it ensures an adequate level of liquidity, effectively uses temporarily free cash and partially compensates for the costs of financing working capital. By formalizing the debtor's debt with a promissory note agreement, the company reduces the level of risk during operations

Financial investments are divided into:

Strategic;

Portfolio.

Strategic financial investments should help implement the strategic goals of the enterprise development, such as expanding the sphere of influence, sectoral or regional diversification of operations, increasing market share by “capturing” competing enterprises, acquiring enterprises that are part of the vertical technological chain of production. Therefore, the main factor influencing the value of the project for such an investor is the receipt of additional benefits for its main activity. Therefore, strategic investors are mainly enterprises from related industries.

Portfolio financial investments are made with the aim of making a profit or neutralizing inflation as a result of the effective placement of temporarily free cash. Investment instruments in this case are profitable types of monetary instruments or profitable types of stock instruments. This type of investment is becoming more promising as the domestic stock market develops.

There are also several types of financial investments, namely:

Buying shares. The profitability of this type of investment is higher compared to others, but the risks are more significant.

Purchase of bonds. The advantage of this financial instrument is high reliability, the disadvantage is low profitability. The level of risk depends on the level of expected return. The issuers are large companies and the state.

Investing in mutual funds (PIFs). In such funds, the capital is managed by professionals, so the risks are minimized, and the level of return is one of the highest.

In addition, you can invest in options, precious metals and futures.

The structure of the financial investment market can be defined as follows:

stock market. Here there is a trade in shares of various enterprises;

credit market. It purchases such securities as government and corporate bonds, other types of debt obligations;

currency market. Here you can buy options to buy currency, trade on the FOREX market, etc.

Financial investment is carried out by the enterprise in the following main forms (Fig. 1.2.1):

Rice. 1.2.1 Main forms of financial investment.

1. Capital investment in authorized funds of joint ventures. This form of financial investment has the closest connection with the operating activities of the enterprise. It ensures the strengthening of strategic economic ties with suppliers of raw materials and materials (with participation in their authorized capital); development of its production infrastructure (when investing in transport and other similar enterprises); expansion of sales opportunities for products or penetration into other regional markets (by investing in the authorized capital of trade enterprises); various forms of industry and product diversification of operating activities and other strategic directions for the development of the enterprise. In terms of its content, this form of financial investment largely replaces real investment, while being less capital-intensive and more efficient. The priority goal of this form of investment is not so much to obtain a high investment profit (although its minimum required level should be provided), but to establish forms of financial influence on enterprises to ensure the stable formation of their operating profit.

2. Investment of capital in profitable types of monetary instruments. This form of financial investment is aimed primarily at the effective use of temporarily free cash assets of the enterprise. The main type of monetary investment instruments is a deposit in commercial banks. As a rule, this form is used for short-term investment of capital and its main purpose is to generate investment profits.

3. Investment of capital in profitable types of stock instruments. This form of financial investment is the most massive and promising. It is characterized by the investment of capital in various types of securities freely traded on the stock market (the so-called "marketable securities"). The use of this form of financial investment is associated with a wide choice of alternative investment solutions, both in terms of investment instruments and its terms; a higher level of state regulation and protection of investments; developed infrastructure of the stock market; the availability of promptly provided information on the state and conjuncture of the stock market in the context of its individual segments and other factors. The main purpose of this form of financial investment is also the generation of investment profit, although in some cases it can be used to establish forms of financial influence on individual companies in solving strategic problems (by acquiring a controlling or sufficient weighty stake).

In order for an enterprise to be able to make financial investments, the necessary free financial resources that do not need to be used in production and economic activities, as well as the presence of a developed financial market where you can purchase highly liquid and reliable financial assets.

Most domestic enterprises not only do not have free financial resources for financial investments, but also experience a constant lack of funding sources to maintain the volume of production activities at the proper level. Therefore, if an enterprise makes financial investments, they are mainly intended to support the activities of individual business entities that play or will play a significant role in ensuring the life and competitiveness of this enterprise.

An obstacle for an enterprise to conduct transactions with financial assets is also an insufficient level of development of the domestic stock market and limited opportunities for conducting financial transactions in the international market. Domestic enterprises practically do not have the opportunity to invest in liquid and reliable securities, and therefore cannot receive a stable interest or dividend income. Nor can they maintain an adequate level of liquidity by investing in highly liquid, risk-free government securities. The need to maintain an insurance reserve on the current account, and not in liquid securities, does not allow effective cash management and negatively affects the results of the financial and economic activities of the enterprise.

Unlike enterprises that operate in a developed financial market, domestic enterprises do not have the ability to effectively manage financial risks using derivative financial instruments - futures, options, forwards and swaps. One of the few ways to reduce entrepreneurial risks with the help of financial instruments is the use of bills of exchange in economic circulation to formalize the supply of products, raw materials and materials on a deferred payment basis.

Any investment is not only an important component in the activities of a particular or individual enterprise, but also plays an important role at the macro level in general. And, in fact, real and financial investments in the Russian Federation are the main "driving forces" for the development of Russian enterprises and the country's economy as a whole.

Real - is the investment of capital in assets of a tangible and intangible nature. At the same time, investment objects are closely related to the production and operating activities of enterprises.

For a clearer understanding, we highlight what can be attributed to material and intangible objects:

• formation of fixed capital;
• research and scientific work;
• professional development of personnel;
• innovative activity;
• creation of new product samples.

Financial investments are investments in various financial instruments.

These assets include:

• bank deposits;
• foreign currency.

Relationship

This question cannot be answered only by giving a clear formulation of each concept separately. These types are closely intertwined in the course of practical investment activities. In this regard, it is advisable to consider from the point of view of the question of their relationship.

Initially, any type of investment is in the form of cash. Having a certain amount of capital, the investor, investing it in the expansion or modernization of production, actually turns the money into a form of real investment. But this is not always so easy due to the fact that not every owner of capital has the opportunity and the so-called free access to real production.

This is especially true for individual investors. For this reason, they often choose a more affordable way - investing in financial instruments such as stocks, bonds, deposits, and so on. Briefly, how it works in practice. An individual places funds on a deposit account in a bank, i.e., actually makes financial investments, receives profit in the form of interest.

The Bank, in turn, lends these funds to enterprises and organizations that need investment funds. In this case, the creditor bank actually turns the financial investment into a real form.

For the so-called intermediary activity, he receives income in the form of interest, which is paid to him by the borrowing enterprise. This practical example clearly reflects that financial investment and real investment are closely related.

Advice! Each private investor must understand that by investing in financial objects (securities of enterprises), he thereby actually turns his personal savings into real investments, which, in turn, are the basis for the development of any enterprise in the country.

More details about each type

The types of investments under consideration have their own characteristics. It is important to know them when solving a rather serious and relevant question in the Russian Federation at the moment: “What proportion should real investments and financial investments make in order to achieve the most effective level of development of the country's economy?”. And the characteristics of real and financial investments will emphasize these features.

The first type is real investments

As mentioned earlier, objects of this type can be both tangible and potential (intangible) assets. A more detailed classification provides for the division of real investments into the following subspecies, which are shown in the photo below.

The role of each type is different:

• basic– expansion of existing production, without changing the scope and direction of activity;
• current- Responsible for the process of reproduction. As an example, the replacement of fixed assets or a major overhaul;
• strategic– expansion of production or creation of a new one in a different field of activity / region of presence;
• innovative– aimed at modernization and re-equipment of production.

All of the above subspecies differ from each other in different levels of risk, and this is primarily due to the fact that it is difficult to make accurate forecast data for the future. For understanding: basic investments are less risky in comparison with innovative or strategic ones.

The explanation is quite simple: it is difficult to assess all risk factors when developing a new production or opening a new innovative enterprise due to the lack of real practical data. And the current ones can be considered the least risky.

Advice! When organizing the process of financial management of real investments or conducting a project analysis, one should take into account the type of real investments, and also remember the following principle of their relationship with the level of risk: improving the efficiency of an existing enterprise - minimal risk, new production - maximum.

The second type is financial investments.

This type of investment in practice can be of two types:

• speculative;
• long-term.

The speculative nature is seen in the case with the aim of their further resale with an increase in their value in the market. Long-term, on the contrary, are focused on making a profit in the long term and their main goal is to take part in the management of the enterprise.

This goal is achievable, since such a right is granted to the investor in case of ownership of a block of shares.

Management and evaluation

Financial analysis and risk assessment of real investments are primarily in determining the level of risk, liquidity and profitability. It is these indicators that are taken into account and considered key for any investor. Any financial and real investment projects imply a preliminary assessment of all these indicators before starting their practical implementation.

Investments are real and financial: which ones are more profitable and less risky? Real investments, despite their long-term nature, are characterized by a higher level of stability and rate of return. Financial - low risk of non-return, the ability to predict the timing of profit.

But, despite this, it should be noted that the characteristics of financial and real investments, in terms of benefits for the investor, also have less attractive sides:

• real investments have a high risk and require a fairly significant amount of initial capital;
• financial - less profitable.

Summing up, we can say with confidence that the competent management of real and financial investments of an enterprise is the key to the effective development of not only a particular enterprise, but also the country's economy as a whole.

Hello! Today we will talk about what real investments are.

With the word "investment" more and more often people think of financial investments in any securities, Forex or some huge investment project like Nord Stream. These are all completely different types of investments. Today we will tell you what real investments are and whether there are unreal investments.

What is real investment

Real investment for legal entities

Before you start investing, it is worth remembering that professionals are engaged in it! From the investor, such investments require knowledge in the field of human resources management, knowledge of the markets for goods and services and the specifics of their expansion, knowledge and skills in the field of financial investments and financial management, and much more. Otherwise, there is a huge risk of losing all your investments!

In order to start real investment, you need to take into account the risks, and write, and calculate the rate of return, payback time and many different parameters. Well, if you deal with this matter seriously and thoroughly. It seems difficult, but I will try to describe the main points that will help you navigate the real investment, if you still want to do it.

Firstly, if you have your own enterprise / firm, you will have to make real investments anyway, because it is such investment, unlike financial one, that gives you huge competitive advantages, especially in time.

Secondly, in Russia there is Federal Law No. 39-FZ "On investment activities in the Russian Federation, carried out in the form of capital investments." Before making real investments, you can familiarize yourself with this law, so that later there will be no questions either to the law or to yourself. He is not big.

Thirdly, you need to understand what tasks you are pursuing by real investment.

Tasks of real investment:

1. Sometimes real investment is necessary when you simply cannot do without it in order to stay afloat - supported by laws or circumstances. An example of such an investment can be an increase in the environmental safety of an enterprise, a decrease in the toxicity of waste, which the state may legally require from a company.

If these requirements are not met, it will be in principle impossible to carry out activities, therefore such investments become mandatory and necessary. The same investments include improving the working conditions of workers, if this is also required by the state by law.

1. Improving the efficiency of the enterprise. In order for the company to remain competitive, its equipment, technological processes, conditions and work procedures for employees also need to be changed and improved. For example, it often happens that you come to work in an organization (as a hired worker or just to do some technical or software work), and there are so old computers that managers do several hours of work that requires time, in a good way, in a few minutes, half an hour, maximum hour. Efficiency is extremely low, and no matter how hard you try to train managers to work faster, nothing will come of it without updating the technical base.
2. If you are going to conquer new markets or increase your company's share in the current market, then often you will have to make real investments in expanding production. If you are producing a material product, then this is an absolute must for .
3. If you are going to create a completely new product or a completely new service and want to create a new enterprise for this, then you will make real investments in creating new industries.

When you decide on the tasks that you are pursuing in your enterprise and for which you are going to make real investments, it is worth studying the main forms of real investment.

Forms of real investment

1. Purchase of full-fledged property complexes. This is usually the acquisition by a large enterprise of another, new enterprise as a whole, with all its buildings, structures, technological processes, equipment, etc. This allows an organization that has bought a whole property complex to diversify its business, enter new markets, produce new goods or provide new services.

Recently, due to the large amount, this form of real investment has become very popular, because it is during the bankruptcy of an enterprise that you can buy it for the minimum cost, but at the same time, in order for this enterprise to work further, it is necessary to invest a lot of money in it. But the infrastructure and customers already exist.

1. Construction of new buildings, facilities, infrastructure. An enterprise resorts to this form of real investment when there is no possibility or desire to buy already existing other enterprises. But there is a desire to expand, develop new markets and expand the share of existing ones, open new branches. Such a real investment is carried out if the company plans and sees all the prerequisites for stable and strong growth.
2. Reconstruction. This type of real investment is used when your production needs re-equipment, technological re-equipment, or when old buildings do not correspond to new technologies that you want to apply in production, and then you need to reconstruct existing buildings, structures, technological processes, etc.

Thanks to reconstruction, you can master new technologies for your production, improve the quality of your products, and increase your production potential.

This is a very useful form of real investment, which is systematically carried out by modern, developed and successful companies. Often in Russia, neither buildings nor technological processes know what new technologies are and what benefits they can have for production. Therefore, Russian firms usually lag far behind the world's leading companies in development.

1. When talking about reconstruction, one often mentions reprofiling, that is, a complete change of all technological processes for the production of completely new products.
2. Modernization- this is a form of real investment, in which all the production capacities of the enterprise, that is, its machines, equipment, etc., are brought into full compliance with the times, with modern new technologies. This is also an extremely useful form of real investment, since it further gives a very high efficiency of working time and, in general, of all the resources that the enterprise has.
3. Purchase of certain types of tangible assets. This form of investment is not associated with a complete "change of shoes" of their production, but with the acquisition of individual machines, machine tools, raw materials, any goods. On the one hand, the replacement of old machines / raw materials took place, and huge funds did not have to be spent on all this. Often such, partial real investment is carried out either in connection with the depreciation of production capacities, or in connection with an increase in production volumes.
4. Investments in innovative intangible assets. This is the purchase of new patents, trademarks, licenses, new knowledge, etc., which will pay off and bring profit in the future period. This new knowledge and technology can either be developed independently or purchased.

These are the forms of real investment that a legal entity can carry out. Everyone will choose the forms that are suitable specifically for him, his enterprise, but it is worth remembering that real investment, often unlike financial investment, pays off very well, gives a huge impetus to the development of your business, your enterprise, while there are relatively few risks in real investment, this is reliable form of investment. But they are most often expensive.

Let's summarize all of the above and highlight the main features, pros and cons of real investments.

Features of real investments, their pros and cons

1. Real investment do not depreciate just like the national currency does. If the exchange rate can jump back and forth, and the cost of money from the population, respectively, too, then the cost of real investment objects does not jump anywhere at such a pace.

For example, for individuals who bought apartments for rent or resale: the apartment gradually increases in price, and its growth rate often outstrips inflation in a stable economy. The apartment does not depreciate as much as the currency. Real business investments also give a huge impetus to its development, outpacing inflation for a long time.

1. Real investment carry less risk(an apartment is always likely to cost a lot of money, a machine or machine will most likely work for a long time and cost a lot). An apartment or a machine, a patent does not need to be risked, like a financial instrument in the market.

If you have made real investments, you see them in a material way, and real investments do not carry any "air", as in the market.

1. Wherein return on real investment is high. This is not the minimum interest in the bank, not the dubious and incomprehensible management of your assets, this is a real increase in production efficiency that brings you profit every day. Maybe not right away, but in the future, yes.
2. It is with the help of real, and not financial, investments that a business has the opportunity to develop faster, more efficiently, better, wider. New technologies will increase production efficiency, new equipment will allow you to produce better products, which means you will have more customers and, accordingly, you will be able to.
3. Objects of real investment can quickly become obsolete due to rapid technological progress. It seems that they updated the equipment, improved technological processes, and while all this was being implemented and developed, the competitor had already bought something more technologically advanced, because suddenly a completely new technology appeared on the market. It may be like that. Therefore, real objects require continuous investment and support.
4. Objects of real investment are very little liquid. If any financial instruments can be sold, in principle, very quickly (except for crisis and stagnation), then equipment, especially those that have already been in operation, most often cannot be sold quickly.

Or the purchased raw materials may not have time to be sold, sold, and it will deteriorate. And nothing will happen to financial instruments, and they will also be sold faster in any free financial market.

If you have already firmly determined that you want to make real investments in your organization, then you need to understand at what expense this real investment can be made.

Sources of real investment

Federal Law No. 39-FZ refers to such sources of capital investment:

1. Investing with own funds;
2. Investing with borrowed funds.

An example of borrowed funds is, for example, income from the sale of shares, additional contributions to the authorized capital, etc. That is, this is not a loan, not a loan. The funds raised do not imply interest payments, but they also need to be “paid” for them in a certain way (for example, for shares - dividends).

So, using loans is not a good idea. What if the project fails? Not only does real investment often yield results for years, but you need to pay for a loan now, there is also a risk of incomplete realization of your investments. And banks, as you know, are not interested in your problems. Therefore, it is better to either save up for real investment, or look for funds raised for your business.

Real Investment Management

Management of real investments is carried out in the organization by specialists, since this process requires certain knowledge and skills.

The management process includes the following stages:

1. Conducting an analysis for the presence of real investment in the business. That is, it is required to study the past investment experience of the organization, if it was:

• What investments were made, and what part of the total investment is occupied by real investment;
• How did the volume of real investments change before and why;
• To what extent real investment projects have been implemented;
• To what extent the invested funds were mastered;
• To what extent investment projects are completed / not completed and how much more resources are needed to complete them;
• How effective were the previously made real investments, how did they correspond to the goals and desired parameters.

1. Based on the experience learned, the amount of real investment that you want to realize in the future is then determined. This desired volume comes from how much and what you want to change in your business.
2. Definition of the form of real investment that you want to apply/implement in your business. This was written above.
3. Selection and search of such investment projects, areas of investment, investment objects, which would correspond to the goals that you want to achieve in the investment process, as well as the forms of investment that you previously defined.

At this stage:

• The proposals that are currently on the investment market are being studied, the most appropriate to the business and its capabilities are selected;
• The necessary investment objects are selected;
• A thorough analysis of all selected investment objects is carried out.

Virtually all forms of large-scale investments (except minor investments due to depreciation of equipment) are considered as investment projects. For investment projects, a detailed business plan is required.

1. Selected investment projects are analyzed for their effectiveness. In parallel with this, all possible risk factors inherent in this particular project are also analyzed, as well as the correspondence of the level of risks to the level of profitability of the project.

When analyzing possible risks, the main indicators of the project are taken and changed in a negative direction. At the same time, the sensitivity of the project to such negative changes is analyzed. Such modeling of possible risks allows the investor to understand how the project indicators and the overall possibility of its implementation may change. And also later, during the direct implementation of this project, it is good to navigate in all scenarios of its implementation.

At the same stage, the risks of reducing the solvency of the organization as a whole are considered: real investments need money, they are taken from any other possible areas of activity of the enterprise or from reserves, and this diversion of funds is quite long, so the overall solvency of the enterprise can significantly go down.

1. A real investment program is being drawn up.

All possible options for investment projects at this stage of real investment management are classified according to possible profitability, risk, investment goals, their liquidity, etc. Based on the fact that the total investment is limited in any case, the most profitable projects are selected that will contribute to its most active development. It is these projects that will be included in the future investment program.

1. The stage of implementation of the investment program and all projects included in it.

The implementation of the investment program is carried out using such tools as:

• A certain scheme of project financing;
• Schedule of project financing;
• capital budget.

Each tool performs its function, and with the help of a combination of these tools, the implementation of the investment program will not be long in coming.

1. All investment projects and the investment program as a whole are constantly monitored, the main performance indicators of projects and the entire program are analyzed.

Here is such a simple scheme for managing real investments. Managing real investments in organizations is not an easy thing, and every investor, deciding to take such a step, must understand what, in addition to a headache, he will get from this whole process.

Conclusion

As you can see, real investments are a good thing. They carry both risks (relatively small) and huge advantages for any business, allowing it to develop, work more efficiently and be the most competitive.

At the same time, real investment, as a very reliable type of investment, is available not only to organizations, but also to individuals. It is often expensive, but the returns are good, and investing in intangible objects can even be quite affordable if you create these objects yourself.

In a word, it is up to you to decide whether to make a real investment or not, but this occupation is definitely worth it.

First, let's find out what is hidden behind the concept forms of investment .

The form of investment is various ways and methods of realizing the free capital of a company or an individual.

There are a great many of these ways and methods, but all of them are equally accessible to both individuals and legal entities.

Forms of investment and their differences

They differ in the following ways.

If we consider investing in terms of timing and time, then the following forms are distinguished:

• (up to 1 year)
• (over 1 year)

If we share forms of investment by investment objects, we can distinguish:

• financial investments (securities)
• investing in various types of monetary instruments
• real or direct investment (investment in production)
• investments in the authorized capital of other companies.

When investing financially, the object of your investments will be securities traded on the stock markets. The purpose of buying securities is either to obtain additional net income or to establish financial control over the company that owns the security by acquiring a controlling stake.

Investing in monetary instruments is, as a rule, aimed not at making a profit, but at preserving the temporarily free funds of the investor and is of a short-term nature. In the current realities, the most common monetary instrument is a bank deposit. It allows you to save and sometimes increase your temporarily free funds.

Real or allow organizations to enter new markets for their own products, modernize their own production and increase the capitalization of their company as a whole.

There are the following forms of real investment

• mandatory investments are made in order to ensure environmental standards in production, as well as to ensure the proper level of working conditions for workers. Such investments are regulated by the state
• in the development of production: improving the organization of labor, technological and technical improvement of equipment. All this is aimed at reducing production costs and the total cost of products, services, etc.
• to the expansion of production. The main goal of such investments is to increase the volume of products and the level of profits, respectively.
• in the construction and creation of new branches of production. In such branches, new types of finished products are produced, new types of services are provided, etc. All this helps to strengthen the company's financial position and conquer new sales markets, as well as increase the number of potential consumers.

Consider the objects of real investments:

• takeover of another organization by purchasing a controlling or full stake. This form of investment requires a large amount of funds and leads to an increase in the total capitalization of both organizations, and also has a number of advantages in the form of complementary technologies, an increase in the number of types of manufactured products, a reduction in prices for raw materials and materials, the convenience of selling finished products, etc. P.
• modernization and repair of the equipment available to the enterprise. This is done in order to increase production volumes, improve the quality of products, etc.
• creation and launch of new construction, as a separate legal entity with a complete, ready-made production cycle, in order to diversify the main activity.

When carrying out investment activities to maintain the competitiveness of the enterprise, many organizations use forms of financial investment in order to diversify its core business.

Sources, as a rule, are temporarily free financial and monetary resources of the organization.

Forms of financial investment:

• investments in the authorized capital of the joint venture. This allows the organization to establish strategic relationships with suppliers of materials and raw materials, which in turn has a beneficial effect on its own operations.
• in the authorized capital of enterprises engaged in the sale of goods, allows you to develop new markets
• into profitable monetary instruments. This form allows you to receive income from temporarily free funds and use them as efficiently as possible.
• in financial instruments or investing in the stock market. This form of investment is the most large-scale, has flexibility in the choice of instruments and terms of investments.

  Also this form of financial investment is able to solve some strategic tasks, by financial injection into a third-party organization.