What is investment company

Investment companies are companies that are engaged in investment activities, i.e. attraction of free funds on the capital market. The capital of these companies is usually represented by securities.

The concept of investment companies

Investment companies are a relatively new type of financial institution for Russia. This is not surprising, because the investment company can normally function only in a market economy.

Unlike investment funds, companies only work with securities. They are engaged in the accumulation of funds and their subsequent profitable investment. Investment companies usually produce their own stock. The funds received from their sale to invest in equities. Accordingly, the income of shareholders of investment companies directly depends on how wisely we will invest. A very popular way of investing in Russia is investing in construction companies.

Investment funds can be invested in stocks and bonds of various economic enterprises. Financial risks for investors are greatly reduced, because the fall in the value of some securities raises the price of others. An important advantage for the investor is obtaining the services of the financial Manager's role which is the investment company. It turns out that the investor risks only if you select the wrong investment company.

Signs of a reliable investment company

The choice of investment of the company should be guided by certain criteria that will allow not to make a mistake. Reliable investment company must have a license for brokerage and dealer activities and management of securities. Such a license may only be issued by the Federal service for financial markets. The hallmark of a reliable investment company you can consider it a long-lasting work – at least since 2008.

The presence of significant assets is an important sign of a good investment company. In addition, the investment company should not promise a yield that is several times greater than the average values. Data on investments of the company must not hide from investors. An important advantage of any investment company is the investment of money in the group. In this case, do not have to constantly track the dynamics of prices, look for any pitfalls and to be afraid of political risks.