Investment project: how to choose and earn

It cannot be said that the notion of an investment project has taken root in Russia perfectly: so far most of the population recognizes only one type of investment - the purchase of housing. However, other areas are gradually entering our lives and become familiar.

Investment projects are a separate niche of this industry. It’s not always easy to work with them, so the main features will be described in this article.

What is investment projects

An investment project is a project that explains in detail the feasibility of its existence. It describes the concept of the company and the business plan for which it plans to develop.

An investment-based project will only collect them if it can convince the sponsors that they are benefiting. Therefore, all stages of activity, potential profits and costs are described in a specific numerical expression.

The result of an investment project is the implementation of some idea, not necessarily a single and specific one: some are engaged in currency trading on the stock exchange, and investors receive a percentage from this.

Do not confuse this concept with a business plan.

Project classification

There are several classifications of investment projects.

In terms of implementation. There are investments long-term, the payback of which is calculated in a period of three to five years or more, medium and short-term, which generate income already in the first year. Usually, the longest are having big startups operating with the appropriate amounts: for example, if you invest 1 a million dollars in building an industrial factory, the income can flow even five to seven years before the first profit. Most likely this is not the type that interests the ordinary population.

On the threshold of entry. The minimum amount that can be invested can be large - from $ 1 million (this is a niche for legal entities, often just not enough money, a certain legal status is also needed), moderate to $ 1 million, and small to $ 100 thousand. Of course, the boundaries with the amounts are very blurred and depend on a specific niche, in the rocket industry and a million dollars will not be considered such a big investment.

By focus. The investment project is social and commercial. Most often you will be dealing with the latter, where the organizer's goal is to engage in potentially profitable activities. Social issues are related to solving acute social issues (for example, unemployment), the benefits from them are not always economic.

By potential income. High-yielding, mid-income and low-yielding. Among the high-yield ones, there are HYIP projects that guarantee a high interest rate (however, it can fluctuate: the fastest payments are promised to fasts, and the long-lived ones are characterized by smaller amounts). It is on the HYIP that you can earn the most, especially if you know how to choose them.

It is possible to classify further, here are the main criteria by which these projects may vary.

Payback period

The payback period of the investment means the period for which the income will fully cover all investments and begin to make a profit. It depends on the amount of investment and the size of the promised regular return, but it is difficult to calculate a 100% accurate figure: circumstances beyond the control of you or the project organizers may affect.

This indicator is basic when choosing an investment project, and the developers themselves indicate the numbers above all else, in order to attract the investor and answer his main question. In HYIPs, this is the percentage that you will receive daily, weekly, or monthly.       

There is one difficulty in calculating the payback - the inability to take into account changes in the exchange rate for the period to receive dividends. To simplify your life, you can simply choose fast investment projects.          

You can calculate using three methods: manually using a formula, in spreadsheets and special calculators. Manual should be chosen when you work with large and serious investments - this way the risk of miscalculation is greatly reduced.

HYIPs as investment projects

For this it is necessary to allocate a separate section: HYIP projects in society, some ambiguous attitude was formed, close to negative.

But an experienced investor perfectly understands where and why he is going. It is quite possible and even necessary to extract the maximum benefit and correctly enter the HYIP projects, and with a certain skill it is not so difficult.

In terms of focus, this niche can be, in principle, different: related to traditional currencies, cryptocurrencies, the agricultural sector, real estate - whatever. This criterion does not play a special role and it may not even be considered.

What you need to consider when choosing

RџSЂRё investment In addition to the payback period, projects also need to take into account several important criteria:

1. The concept of the project. The organizer must clearly explain what, why and why his company does;
2. Relevance. The direction should be in demand - so the chance that the project will last afloat and you can earn much higher;
3. Feasibility. The idea should be concrete and realizable in the near future: currency trading, tourism, lending. Do not trust abstract stories about the distant future;
4. Possible risks. They are in any undertaking, they are simply expressed in varying degrees - this degree must also be able to be defined;
5. Analysis of possible costs that may impede the receipt of income.

A good investment project willingly offers the audience information about themselves, creators, plans and amounts. Not very good speaks in general terms and pours water. Both in the first and in the second case an independent analysis should be carried out - blind trust even to the most attractive promises (especially them) is not always justified.

Specialized resources that regularly publish descriptions and ratings of new startups can help with the selection.

Risks and benefits

In conclusion, it is worth assessing the main risks and benefits of the concept of an investment project.

Risks

1. You can run into fraudsters and lose money, which is especially unpleasant with a high investment threshold;
2. The audience may lose interest in the project, it will close due to a lack of investors and you will not receive money;
3. The concept will be unviable and not needed by anyone, because of which the company will not receive income.

Almost all of them are leveled by good, deep analysis.

Advantages

1. A choice. Projects with different duration, threshold of entry, focus and scale arise each - I don’t want to choose;
2. Alternative source of passive income. Money will simply flow into your account without your participation;
3. No need to make an effort. In addition to the first analysis when choosing a project you really do not need to do anything;
4. Potential. This direction is constantly being improved, it attracts new faces and becomes more serious;
5. You can earn a lot. In the future, much more than the average office work.

Investing is not a big deal. You can always start with small steps and test your strength, and then confidently multiply your capital.