Investment companies are companies engaged in investing their own or others’ money into something with the purpose of their further multiplication.
What does an investment company do?
The simplest example will help you understand it. For instance, you have a certain amount of money and there is no desire to keep it “under the pillow”, and there is no time/energy/knowledge to make money work, for example, by investing in a business. For such cases, there are investment companies that will take on all the burden of investment operations, and you only get a great opportunity to enjoy profits. Many have tried to “taste” all the advantages of these companies and have appreciated them while the other ones were thinking where to invest the money.
An investment fund that is very similar to an investment company. At the same time, companies have a significant peculiarity — if mutual investment funds act only as trustees, investment companies have legal registration and conduct their activities with strict regulation by the law. In addition, they have the appropriate licenses to engage in brokerage and dealer operations.
2 types of these companies
All investment companies can be divided into 2 types: these are closed and open ones.
Closed ones are those that do not work with private investors. These companies work only with their or borrowed from the bank money. In short, they are not engaged in trust management and they are not interested in other people as investors.
Open investment companies accept investments from private investors in trust management, i.e. you can give (trust) this organization your money, and they will manage it, investing it somewhere, in order to further increase it and make a profit on your money (Forex, stock market, business, etc.).
These companies provide a trust management service — they are interested in private investors as these investors can create for themselves an unlimited number of passive sources of income and get more free time.
How to work with investment companies
It is possible and necessary to work with them. However, before you begin to do this, you need to understand a few very important things:
Before you learn to do well something (drive a car, build houses) you must train. From the 1st, 2nd, and even from the 10th time you will not learn how to deal with the airplane, no matter how much you want it and how easy it may seem to you. Here, you need a good teacher who used to do it hundreds of times.
It is not excluded that you can manage to drive a car or an airplane yourself, but imagine what it will cost you? (time, money, accidents, repair, etc.).
How to start
You can learn how to make money in any investment company, and it is absolutely not important if it is a financial is a pyramid or a company that deals with real trust management. The essence of the work of these companies is the same, only a few principles and rules of their work differ.
– It is necessary to start investing your money with minimum amounts ($ 50- $ 100). At the beginning of your journey, you will definitely have losses, and you should be prepared for this. Losses of small amounts are taken easier than large ones.
Training and working with investment companies can be compared with training and flying on an airplane.
The higher the speed the:
- Harder to learn to fly;
- The probability of an accident increases several times;
- You can quickly reach your destination;
The lower the speed of the plane, the:
- Easier to learn to fly on it;
- The probability of an accident decreases several times;
- Longer the flight is.;
The situation with these companies is similar.
If the profitability in the company is low then:
- It is easier to learn how to work with these companies;
- There is less chance that you may lose your money in the near future;
- Achieving this goal will take you more time;
If the profitability in the company is high then:
- It is more difficult to learn how to work with it;
- The probability of losing your money increases significantly;
- You can quickly reach the goal.
The best investment companies
Today, FinanceWorld recommends these best investment companies:
- Dean Graziosi (real estate);
- Lear Capital (silver and gold);
- Marco Rubel (real estate);
- Ameriprise (financial products);
- Charles Schwab (financial services), etc.
However, these are the companies recommended for big investors. The smaller ones can better pick other organizations that can be found on the Internet.
