the Most readable: active and passive investments

Published: 11.11.2016
active and passive investments

The concept "investment" as a way of investment of capital for the purpose of further receiving profit, enters our life more and more deeply. The possibility of receiving additional, and even main income from favorable passive investments does this sphere of the financial market more and more attractive to the consumer. Before making the investments in any asset it is necessary to understand a little types and types of investments to choose for itself more acceptable strategy.

the Convention of this type of classification is explained by the fact that it is possible to call the same type of investment both active and passive. For example, investing the means in PAMM-accounts, the investor analyzes their profitability, moving assets from one account on another - such type of operation it is possible to call active investment unambiguously. However, when the operating trader begins to dispose of the means located on the PAMM-account - the way of such investment becomes more similar to passive.

It is considered that risks on passive investments are slightly lower, than on active. However it is quite logical that any financial risks are directly proportional to profitability. Therefore, the risks are lower, the profitability is higher. If making the choice between profitability and reliability, you prefer the last - passive investments - your option. Many investors do not puzzle over the similar choice, and invest a part of assets with a passive way, and a part active that allows to counterbalance risks and profitability.

There is no definite answer to this question to this day. Between supporters of active and passive investment an undying debate which essence comes down to one are conducted: everyone chooses for himself the most convenient way. Passive income from investments is chosen by the people who do not have free time for the independent analysis of the financial markets, or not possessing information fully and preferring to entrust the finance to professionals.

Conditionally investments are divided into two views:

Active investments assume independent management of the assets while passive - transfer of management of the finance to the third party. It can be management company, or any trust fund, an essence from it does not change.

Advantages:

Source: http://photo-rai.ru

Published in category News Labels:

Leave a comment:

 

In order to leave comments, you need to register