The main role of investment in the economy

Investments in the economy are the investment of monetary, material and intellectual resources into a business entity or sector of industry.

It's no secret that the investor automatically assumes all the existing risks that are somehow connected with the investment of material and cash. If the project is initially unprofitable, then it is very likely that the investment will only slow its default.

The profit received from the invested funds can not be limited to the size of the initial investment. In this case, the interest rule works, that is, the investor receives a percentage of the profit, and not the amount that was agreed in advance.

The skill of the investor is to choose as profitable a project as possible, which in the future can bring the greatest result expressed in income.

Investments in the economy, which are called real, imply the direct acquisition of real capital, which can be expressed in one form or another. And in this case, investments will be used to significantly expand, form and carry out reconstruction.1

If we are talking about financial investments, in this case we mean the acquisition of various securities, which in a number of cases opens up opportunities for the investor not only to participate in the process, but also to influence the implementation of reforms and the organization of financial management of the invested volume.

Today, such a kind of investment as speculation or otherwise speculative investment has become widely known. In this case, money, investors are invested in currency and precious metals with the expectation that over time (and as a rule here it is a question of a fairly short period of time) their cost will increase substantially, and, therefore, will provide the investor with the greatest, as expected profit.

First of all, this is their profitability, that is, what kind of profit the investor can expect, investing in one or the other in the investment project. Also an integral part of any investment is - risks.

In this case, there is not always a standard pattern - the higher the expected risk, the higher the income.