What are the most important basics for investment

Being able to properly invest at a young age fund, you can forget about the need to spend a considerable amount of time to provide your own needs. Still, do not expect that you will absolutely have nothing to do. You will need to study, analyze, and take risks.

Nevertheless, sooner or later such efforts will give a positive result represented by a stable profit. At first, most likely it will be only an additional income, but step by step it can become the main one.

In addition, the invaluable experience of how to become rich from investing extra money safely will be acquired during the investment process. It is sure to come in handy in the future, even if you can not earn significant money.

In order to effectively get a return on your investments, you need to know that there are certain factors that hinder the growth of capital, but there are factors that help the capital grow. Negative factors include risks and inflation, positive ones - profitability and time. Your task is to minimize the action of the former and to maximize the use of the latter.

Inflation is the main enemy of the investor. As a result of the annual depreciation of money, the purchasing power of your capital is regularly reduced. Therefore, in order to reduce the inflation factor, it is necessary that the return on your investments exceeds the current level of inflation, otherwise, you risk, after some time, obtain a reduction of your investments, which will annually be “eaten” by the inflation. Even a difference of 1-2% of the level of inflation on long terms is able to give a serious failure in the amount of your savings.

Basic investment strategies

Using capital growth strategies should always be aware of the risks. Absolutely all financial instruments are subject to risks, to some extent. And since the process of accumulation lasts a very long time (at least 10-20 years), then the probability of occurrence of any adverse event during this period increases many times.

Imagine, to begin to invest for monthly income you have invested all of your funds in the shares of one successful company that has shown just fantastic growth over the past few years. After buying the shares, their value has increased several times. You always buy more and more and your mind calculates the profit that you will receive in the future.

But one day the company declares itself bankrupt and all its shares fall almost to zero. You lose everything at once, all your money, which has been saved for many years. Not very bright picture, isn’t it?

To prevent such situations is necessary to learn about basic investment and method of risk reduction (diversification). The essence of this method is the distribution of your savings on different financial assets. Let's say you put money into stocks, bonds, currency, bank deposits, real estate, etc. Within the financial instrument, it is also possible to divide into different assets. You can open bank deposits in different banks. Form a portfolio of shares, which includes several companies with varying degrees of reliability and profitability. A well-diversified portfolio is able to protect your investments from possible losses.

Where is best to invest my money

Depending on the level of risk, all investments are divided into three groups (in order of increasing degree of risk):

• conservative (best way to begin investing);
• investments with moderate risk;
• aggressive investment.

Despite the fact that there are investors who, in pursuit of high profits, agree that their investments are at high risk, most investors still try to avoid high-risk investments. This applies to both beginners and experienced investors.

The precious metals market and, accordingly, the companies engaged in its extraction and sale, are extremely attractive for investors being good ways to invest money. In the current conditions of growth in volatility in world markets and the growth of inflation expectations in the world, it is advisable to stake on the growth of shares of gold mining companies.

At current levels, for example, are attractive natural resources investments in Kazakhstan. The gold reserve of Kazakhstan is quite large. There are more than 200 studied sources of this precious metal in the republic.

The entry into force the Law "On Subsoil and Subsoil Use" at the end of 2017 opens the new horizon of opportunities for joint gold mining in large mines. Invest in Kazakhstan mining industry can be very profitable for investors because of the high gold content of rocks and close proximity to the surface. Also, the cheap labor should not be underestimated. Analysts believe that the new law is aimed at protecting the interests of investors who will receive guarantees of stable operation in the fields of Kazakhstan.