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Time does not stand still and everyone thought about it - there is work, but they want to receive passive income, or even forget about the important boss, the team, the schedule and go on vacation while receiving their interest. This article will be about this.
Tools for investing
Capital can be formed from various sources - real estate, money, equipment, etc. When the time comes, you will face the purchase of securities through Freedom Finance, the first thing that comes to mind - what is the main thing in this case?
The main thing is two concepts that should not be forgotten. Risk and profitability of investments. The higher the total income from securities, the greater the risk of losing the investment.
But first, let's give an idea of what securities are. Securities are a document that certifies your right to own property or confirms the fact of a lease between an investor and a company, giving the right to receive income from them.
The following types of securities exist:
- bonds from the state
– bank shares (promissory note, deposit, deposit)
- Corporate bonds
- Shares of enterprises
– securities of production companies
The investor has the right to choose how he will manage his securities. According to the forms of management, the following are distinguished:
- Independent management
- Fiduciary management by other market participants
That is, at first, in order to learn all the basics, it is worth contacting professional market participants. Several forms of trust management are also distinguished here:
– mutual investment funds
- Management of a package of documents by the bank
– Trust management of an investment company with the appropriate license
This is where the main trick of all securities management lies. Mutual funds can manage your securities portfolio. For such a service, you will be charged an amount of 0.5 to 5 percent per hour, regardless of the profitability of your portfolio.
Banks already take on more extensive obligations and the size of the service will be from 15 to 20 percent of the net profit of your securities. Despite the fact that the management decision is made by the bank, full responsibility for the result will be assigned to you.
Both options do not seem too rosy, so usually all investors try to manage their portfolio themselves, but here you already take all the risks and your portfolio can both rise and fall in price.
For auctions, you need to choose a good broker - a participant in investment auctions. When choosing a broker, you should consider the following criteria:
– Professionalism and reliability
- Availability of a license
- Stock exchange membership - MICEX, RTS
- The size of the charged commission
- Availability of remote access for trading by the client
Do not neglect the analytical services provided by both banks and private companies. This can be a good step to start your investments.
