Investments. The concept of investments and their role in the development of the country's economy

The concept of investment refers to economic terms. Investments in their essence are various investments that can bring profit in the near future. Profit making is the main purpose of investment.

In practice, the concept of investment has some distinctive features. Financial investments - a set of monetary costs for various types of financial assets (such as shares, government securities, etc.).

Material investments (otherwise investments) are, first of all, invested in real estate or other property (buildings, constructions, commodity stocks or building materials).

Intangible investments are also financial investments in various studies, in advertising activities or in the training of personnel.

The concept and types of investments depend on their purpose of use in real practice. The effectiveness of such investments largely depends on their structure. The structural component of investments differs depending on their type, area of use and their percentage in the total investment portfolio.

Based on the structural component, the concept and types of investments can be further subdivided into direct real investments and portfolio investments . What is their difference?

The concept of real investments already implies direct personal participation of the investor in the work of investment investments. For example, this is a monetary investment in the authorized capital of at least 10% or the purchase of shares of an economic entity. Portfolio investments have a somewhat different purpose and structural content. The concept of investment portfolio type involves the purchase of a portfolio of valuable assets in order to increase their own revenues through profits from them in the future, but it does not oblige the investor to actively manage and control their movement.

The modern development of the national economic complex as a whole has in many ways expanded Concept of investments and their types . This is agricultural investment, and production, and infrastructure, and demographic investment in the human factor. Penetration of investments in various spheres of activity significantly accelerates economic growth in public life. This is directly related to fundamental changes in production, with the possibility of introducing nanotechnologies, the latest techniques in various fields of economic activity through investments.

Increasing the growth of land, the use of a new resource base, the renewal of technical skills and the introduction of conservation of environmentally friendly technologies - all this became possible in connection with the use of investments. For any economy, monetary investment is a real mechanism that ensures its growth and development. Investments are also divided into long-term and short-term, convertible and speculative. By the degree of risk, they can be divided into high-risk and low-risk, according to the terms of use - for indefinite, medium-term, long-term.

Investments at all levels play a crucial role in the development of production through the updating and modernization of production processes, improving the quality of products and its competitive ability. Investments are also used to carry out environmental protection measures, which also contributes not only to the development of companies and their normal functioning, profit, but also significantly influences the recreation and development of the environment. This, of course, is of no small importance in the life of every single person. After all, the flora and fauna of our planet for many years of civilization have changed significantly, their development and existence under threat. Therefore, environmental investments are no less important for any state.