What İs The Investment And How İs The Investment Done?

Category: Forex
Video Description: Investment is the permanent use of savings to generate income. The difference from consumption is that the source or value is not consumed at the end of the transaction. Individuals consume a certain portion of their income in order to survive after they have arrived. The remaining part of the consuming part is called saving. Most individuals want to value their savings with "investment".

Revenue - Consumption = Saving - Investment

There are two options for individuals who want to invest their savings by investing.

1- Capital Investments

2- Financial Investments

Capital Investments

Capital investments are generally investments in fixed assets or assets. As an example of fixed assets, individuals can be development-oriented entrepreneurs if they invest their savings in capital goods such as machinery, building facilities, equipment, and equipment by setting up an enterprise with an entrepreneur. As a result of the financing source invested in the business, the profits generated by the production or services rendered will be converted into the monetary capital from the repayment, so that the investors will be able to allocate some of their profits to their savings. Investments made in assets are made up of more immovable assets such as houses and land.

Financial Investments

Financial investment is the way in which the financial instruments are used to evaluate the savings in investment instruments. Therefore, the financial investor tries to profit from the value changes of the investment products. The main thing here is to increase the capital, which is the target savings.

Of course, investors need to make some investment decisions before making financial investments. For example, it is necessary to answer questions such as which venture I will invest, how much risk I will take, which investment instruments and financial instruments I will use. Every investor should set a strategy according to his / her own. At this point, the investor needs to identify himself/herself well, that is, his profile.

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