Investments or investing and The concerning web link.

by Tewarit Maneechay

Investment or investing is a term with several closely-related meanings in business management, finance and economics, related to saving or deferring consumption. An asset is usually purchased, or equivalently a deposit is made in a bank, in hopes of getting a future return or interest from it. Literally, the word means the "action of putting something in to somewhere else" (perhaps originally related to a person's garment or 'vestment').

Types of investment
The term "investment" is used differently in economics and in finance. Economists refer to a real investment (such as a machine or a house), while financial economists refer to a financial asset, such as money that is put into a bank or the market, which may then be used to buy a real asset.


Business Management
The investment decision (also known as capital budgeting) is one of the fundamental decisions of business management: managers determine the assets that the business enterprise obtains. These assets may be physical (such as buildings or machinery), intangible (such as patents, software, goodwill), or financial (see below). The manager must assess whether the net present value of the investment to the enterprise is positive; the net present value is calculated using the enterprise's marginal cost of capital.


Economics
In economics, investment is the production per unit time of goods which are not consumed but are to be used for future production. Examples include tangibles (such as building a railroad or factory) and intangibles (such as a year of schooling or on-the-job training). In measures of national income and output, gross investment I is also a component of Gross domestic product (GDP), given in the formula GDP = C + I + G + NX. I is divided into non-residential investment (such as factories) and residential investment (new houses). "Net" investment deducts depreciation from gross investment. It is the value of the net increase in the capital stock per year.

Investment, as production over a period of time ("per year"), is not capital. The time dimension of investment makes it a flow. By contrast, capital is a stock, that is, an accumulation measurable at a point in time (say December 31st).

Investment is often modeled as a function of income and interest rates, given by the relation I = f(Y, r). An increase in income encourages higher investment, whereas a higher interest rate may discourage investment as it becomes more costly to borrow money. Even if a firm chooses to use its own funds in an investment, the interest rate represents an opportunity cost of investing those funds rather than loaning them out for interest.


Finance
In finance, investment is buying securities or other monetary or paper (financial) assets in the money markets or capital markets, or in fairly liquid real assets, such as gold, real estate, or collectibles. Valuation is the method for assessing whether a potential investment is worth its price.

Types of financial investments include shares, other equity investment, and bonds (including bonds denominated in foreign currencies). These financial assets are then expected to provide income or positive future cash flows, and may increase or decrease in value giving the investor capital gains or losses.

Trades in contingent claims or derivative securities do not necessarily have future positive expected cash flows, and so are not considered assets, or strictly speaking, securities or investments. Nevertheless, since their cash flows are closely related to (or derived from) those of specific securities, they are often studied as or treated as investments.

Investments are often made indirectly through intermediaries, such as banks, mutual funds, pension funds, insurance companies, collective investment schemes, and investment clubs. Though their legal and procedural details differ, an intermediary generally makes an investment using money from many individuals, each of whom receives a claim on the intermediary. Click for read more...


Personal finance
Within personal finance, money used to purchase shares, put in a collective investment scheme or used to buy any asset where there is an element of capital risk is deemed an investment. Saving within personal finance refers to money put aside, normally on a regular basis. This distinction is important, as investment risk can cause a capital loss when an investment is realized, unlike saving(s) where the more limited risk is cash devaluing due to inflation.

In many instances the terms saving and investment are used interchangeably, which confuses this distinction. For example many deposit accounts are labeled as investment accounts by banks for marketing purposes. Whether an asset is a saving(s) or an investment depends on where the money is invested: if it is cash then it is savings, if its value can fluctuate then it is investment.


Real estate
In real estate, investment is money used to purchase property for the sole purpose of holding or leasing for income and where there is an element of capital risk. Unlike other economic or financial investment, real estate is purchased. The seller is also called a Vendor and normally the purchaser is called a Buyer.


Residential Real Estate
The most common form of real estate investment as it includes the property purchased as peoples houses. In many cases the Buyer does not have the full purchase price for a property and must engage a lender such as a Bank, Finance company or Private Lender. Different countries have their individual normal lending levels, but usually they will fall into the range of 70-90% of the purchase price. Against other types of real estate, residential real estate is the least risky.


Commercial Real Estate
Commercial real estate is the owning of a small building or large warehouse a company rents from so that it can conduct its business. Due to the higher risk of Commercial real estate, lending rates of banks and other lenders are lower and often fall in the range of 50-70%.

Concerning web link

Diversification (finance)
Diversification in finance involves spreading investments around into many types of investments, including stocks, mutual funds, bonds, and cash. Money can also be diversified into different mutual fund investment strategies, including growth funds, balanced funds, index funds, small cap, large cap, and sector-specific funds. Geographic diversification involves a mixture of domestic and international investments.

Diversification reduces the risk of a portfolio. It does not necessarily reduce the returns. This is why diversification is referred to as the only free lunch in finance.[citation needed]

Diversification can be quantified as the intra-portfolio correlation. This is a statistical measurement from negative one to one that measures the degree to which the various assets in a portfolio can be expected to perform in a similar fashion or not. Click for read more...

Foreign direct investment
Foreign direct investment (FDI) is defined as "investment made to acquire lasting interest in enterprises operating outside of the economy of the investor." The FDI relationship, consists of a parent enterprise and a foreign affiliate which together form a transnational corporation (TNC). In order to qualify as FDI the investment must afford the parent enterprise control over its foreign affiliate. The UN defines control in this case as owning 10% or more of the ordinary shares or voting power of an incorporated firm or its equivalent for an unincorporated firm.Click for read more...

Gold as an investment
Gold was in use as a form of money, in one form or another, at least from 2560 BC until the end of the Bretton Woods system in 1971. It was used as a store of value both by individuals and countries for much of that period.

Since the end of the Bretton Woods system, gold has largely lost its role as a form of currency. The Central banks still use gold as a international trading and swapping currency. It is still considered by many as a store of value and a safe haven in times of crisis.

Central banks report holding large gold reserves, but groups such as the Gold Anti-Trust Action Committee point out that these reports are misleading as the central banks official balance sheets do not differentiate between gold held in the banks vaults and gold on loan. Click for read more...

Diamonds as an investment
Diamonds have been treasured as gemstones since their use as religious icons in India at least 2,500 years ago. Their industrial usage in drill bits and engraving tools also dates to early human history. Popularity of diamonds has risen since the 19th century because of increased supply, improved cutting, polishing techniques, and growth in the world economy. Diamonds are not normally used as a mainline store of value during times of crisis, due to their lack of fungibility and low liquidity. However, they may still be useful during times of hyperinflation.

Approximately 20% of mined diamonds are used in jewelry and 80% for industrial uses (such as lasers, drill bits and surgical equipment).

Chemical vapor deposition is now used to produce cultured diamonds which, unlike diamond simulants, require very close inspection to distinguish them from natural diamonds.Click for read more...

Methods of investing in gold
Investment in gold can be done directly through ownership, or indirectly through certificates, accounts, spread betting, derivatives or shares.

Other than storing gold in one's own safe deposit box at a bank, gold can also be placed in allocated (also known as non-fungible), or unallocated (fungible or pooled) storage with a bank or dealer. In the case of the latter going bankrupt, the client will be unable to claim the gold and would become a general creditor, whereas gold held in allocated storage should be returned to the client in full. However even with gold held in allocated storage, many gold bugs would still choose their storage provider carefully, making sure of high net worth, with some preferring an offshore bank or storage facility. Click for read more...

Over-investing
Over-investing in finance, particularly personal finance, refers to the practice of investing more into an asset than what that asset is worth on the open market. It is seen most frequently with houses, automobiles, and trailers.Click for read more...

World Investment Report
The World Investment Report focuses on trends in foreign direct investment (FDI) worldwide, at the regional and country levels and emerging measures to improve its contribution to development.Click for read more...

International investment
International investment brings growth and sustainable development when the right policies are pursued. International investment includes foreign direct investment, other capital movements and the operations of multinational enterprises.
The OECD Investment Committee provides a forum for international co-operation, policy analysis and advice to governments on how best to enhance the positive contribution of investment worldwide.
The Committee represents the investment policy community from countries which are the source of 90 per cent of global investment flows. Composed of senior officials from treasuries, economics, foreign affairs and other agencies, the Committee is the guardian of all OECD investment instruments and at the forefront in efforts to develop internationally acceptable best practices based on OECD unique peer learning methods.Click for read more...
Investment Map
Investment Map is produced by the International Trade Centre (ITC) and the United Nations Conference on Trade and Development (UNCTAD) in partnership with: the World Association of Investment Promotion Agencies (WAIPA); and the Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group.
Investment Map aims to assist investment promotion agencies (IPAs) in defining priority sectors for investment promotion, identifying potential investors in a given sector, identifying competitor countries for inward investment, and defining opportunities for bilateral investment.
Investment Map combines statistics on foreign direct investment and international trade, tariff data and activities of multinational firms. The tariff data includes MFN tariffs as well as multilateral, regional and bilateral preferences and covers ad valorem equivalents of specific tariffs, tariff quotas and anti-dumping duties. Tariff and trade data are available for merchandise goods (not services) at the 6-digit level of the Harmonised System for about 5,000 product items. Information on foreign direct investment (FDI) is available on goods and services for up to 150 sectors.
The main strength of Investment Map is the combination of different data (international trade, foreign direct investment, tariff and foreign affiliated companies) into an easy-to-use, interactive Internet tool that allows analysis by country, trading partner and sector. We anticipate it will be best used to identify market opportunities, in combination with tools that provide other information that influence investment decisions, such as costs, conditions and fiscal incentives. Click for read more...


Philatelic investment
Philatelic Investment, the investment of funds in collectible postage stamps for the purpose of realizing a profit, is a relatively recent phenomenon. Stamp collecting has long had the reputation of being an unprofitable hobby for most beginning collectors; nevertheless, investing in stamps is growing in popularity among more advanced collectors. Rare stamps are among the most portable of tangible investments, and are easy to store. They offer an attractive alternative to art, other collectible investments, and precious metals. In addition, for those wary of investing in single-country mutual funds or individual stocks of developing nations, stamps may provide the advanced collector/investor with a means to profit from their appreciation. Click for read more...


Silver as an investment
Silver, like other precious metals, may be used as an investment. For over four thousand years silver has been regarded as a form of money and store of value. However, since the end of the silver standard, silver has lost its role as legal tender in the United States. (The last silver-containing coin meant for circulation as legal tender was the Peace dollar released in 1935.) Click for read more...


Value investing
Value investing is a style of investment strategy from the so-called "Graham & Dodd" School. Followers of this style, known as value investors, generally buy companies whose shares appear underpriced by some forms of fundamental analysis; these may include shares that are trading at, for example, high dividend yields or low price-to-earning or price-to-book ratios.

The main proponents of value investing, such as Benjamin Graham and Warren Buffett, have argued that the essence of value investing is buying stocks at less than their intrinsic value. The discount of the market price to the intrinsic value is what Benjamin Graham called the "margin of safety". The intrinsic value is the discounted value of all future distributions.

However, the future distributions and the appropriate discount rate can only be assumptions. Warren Buffett has taken the value investing concept even further as his thinking has evolved to where for the last 25 years or so his focus has been on "finding an outstanding company at a sensible price" rather than generic companies at a bargain price. Click for read more...


Tax-free investments
You can invest up to £93,000 tax-free with NS&I – find out more with our tax-free investments calculator. You have worked hard for your money...make it work harder for you. With no income tax to pay on the investments shown below, you get to keep all your returns. Click for read more...


Investments
Investment success is a direct reflection of the expertise of your financial provider. For more than 120 years, the companies of the Principal Financial Group® have provided sound investment services with competitive results.

Combining innovative products with experienced investment personnel and sound financial practices, we offer a wide spectrum of services to help businesses as well as individuals achieve their financial goals. Click for read more...

American Century Proprietary Holdings
We are an Investment Management Firm
Since 1958, American Century has evolved from a small, single-style mutual fund manager to a multi-disciplined, global asset investment management firm offering diverse investment vehicles and employing approximately 2,000 people. We've done so by building an organization with strong values and principles, attracting and retaining talented people, utilizing the best research and technology available, and executing a disciplined and repeatable investment process.Click for read more...

Standard Life Investments

Standard Life Investments is one of the UK's leading fund managers dedicated to delivering excellent investment results.

Clients of Standard Life Investments benefit from a truly global perspective based on talented investment teams, a clear philosophy and an understanding of key world markets.

We aim to deliver the exceptional performance and service that our clients expect. We achieve this through the strength of our investment process and the quality of our people.

A unique, proven and repeatable investment philosophy called Focus on Change provides the framework for our teams' expertise to shine. This is applied consistently, which ensures clients benefit from our insights.

Access to our global expertise is available in the UK through an extensive range of vehicles covering all major asset classes. We also have specific experience of developing tailored products for UK clients. Click for read more...



Reference

Wikipedia. 2007. Investment(online). from www.wikipedia.org when 11/07/2007