Types of long-term investments and financial investments. What are long-term investments: types, sources, analysis and accounting

As a rule, long-term investment is more reliable and stable, although the profit from it may not be as large as in the short-term one. That is why many prefer this type of investment. There are many types of long-term investments. Let's take a look at seven of the most popular.

I. Shares and other securities

Securities, including shares, are in high demand compared to other areas of long-term investment. They imply the prospects of the company, the increase in production volumes, the development of new markets, including international ones. Often, when investing in stocks, the most promising area is selected. In order to preserve their own investments and potential income, professional investors invest simultaneously in a number of companies in various fields. All such investments form an investment portfolio.

In some cases, in order to select the most promising and successful areas or individual organizations, the owner of the funds does not have all the necessary information or knowledge. It also happens that in order to buy valuable papers more funds are required than are available. AT similar situations an investor can seek help from mutual funds or mutual funds.

Mutual funds are called intermediary organizations that perform a variety of operations with shares and other securities. They can buy them for their client in the required quantity, as well as perform other operations - sell or offer an alternative. Often, clients of mutual funds want to use the service of forming an investment portfolio with the highest profitability in order to sell their part in the future. In this case, the manager approaches the choice of securities in such a portfolio in detail, being interested in the wishes of the client.

II. Strategic investments

Strategic investments are long-term financial investments. It is to their number that the “controlling stake” belongs, after receiving which the right to manage the company passes to the investor. Acquisition of a controlling stake is unusually rare at once, often it is a rather lengthy process. The investor, step by step (sometimes it takes years), acquires shares, after which he owns the required number of shares. After that, it can strongly influence commercial policy or running the business.

III. Investments in production equipment and transport

This type of investment is very popular. So, for example, after the purchase of vehicles, they can be rented or leased, for the same purpose, some acquire technical equipment. As a result, the investor receives rent for the use of his property, in the future he can simply sell it.

In this case, everything must be carefully calculated - the cost of repairs, drawing up a lease agreement, insurance and other details. For this type of long-term investment, there are risks of equipment being unclaimed or damaged during operation. In the latter case, in the absence of insurance, repair costs can be significant. If you take into account all these nuances, then investments in transport and equipment can become very profitable.

IV. Investments in trading in the foreign exchange marketForex

This direction enjoys a certain popularity, although many treat it with distrust. Investments in the foreign exchange market can be made through trust management or PAMM structure. Such investments can be short-term and long-term. The investment period is determined directly by the investor.

As a rule, the profitability of such investments is quite high, it depends on the chosen strategy, diversification, risk level and other conditions. Nevertheless, the risks in this case can be very high, especially if you choose the wrong trader or company. Many investors initially invest for a short test period, and with successful cooperation, they increase the term and volume of investments.

V. Direct investment in production

Another popular direction of long-term investments is direct investments in business or production. In this case, options are possible - the placement of funds in the expansion of existing production in order to produce new products or improve its quality. The weak side of such investments can be the wrong choice of the direction of development or the insufficient development of the enterprise. Be that as it may, mistakes made during investments will not allow you to achieve the desired result.

VI. Investment in real estate and its construction

Investments in the construction of real estate or the purchase of built commercial or residential facilities will allow you to get a considerable profit. Some use not only their own funds, but also borrowed funds to implement their plans. And such a decision is fully justified, but only if you keep in mind the likely risks. When investing in the construction of a facility, it is important to take into account the likelihood that the contractor may either go bankrupt or refuse to complete the order due to the unfavorable economic situation in the state.

If the funds were invested in the constructed facility, then due to increased competition among landlords or the absence of a tenant, downtime is possible. Another weakness of this area of ​​long-term investment is the high cost of real estate. It takes a lot of money to buy a quality property. sum of money or the possibility of obtaining a loan in the required amount for favorable conditions. Unfortunately, these conditions are not always available.

VII. Investments in jewelry, precious metals and hoarding objects

This type of investment is long-term, since such things are stored for a long time, sometimes more than three years. However, it does not allow you to receive dividends or intermediate profits, and besides, they need to be protected or created. special conditions storage. Sometimes, however, you can make money on exhibiting in museums or renting. The weaknesses of such investments are the cost of security, the high price of the initial investment, the possibility of depreciation, damage and the occurrence of various force majeure situations.

As you can see, each type of long-term investment has its strengths and weak sides. Good when in investment portfolio there are several at the same time various kinds investments. This approach is called diversification. It involves the division of funds for investment simultaneously in a series financial instruments, which allows you to reduce the likely risks and get the desired income.

At the same time, the points of "application" of these temporarily free resources are distinguished in the following main directions:

Authorized or share capital of other organizations;

Securities issued by various issuers;

Providing borrowed money third party companies or third parties;

Accommodation on deposit accounts credit and financial institutions.

A company can acquire shares in existing enterprises, create a subsidiary, or join partners by buying out part of the organization.

The issuers of the acquired securities can be both commercial firms and state or municipal bodies. The main securities related to long-term financial investments are debt - promissory notes or bonds.

An organization can lend money to both individuals - its own employees, and legal entities - any companies under a loan agreement.

All these types of placement of funds have an increased degree of risk, because the result of investment and profitability are based on the entrepreneurial efforts of representatives of other firms. Business is an unpredictable thing, and therefore the risk of losing all invested funds is high.

Even banking products now - not the most reliable direction of investment, especially the funds of legal entities. The sweeping of the banking sector continues, and even experts are in no hurry to blacklist financial companies that will soon leave the market. The most annoying thing is that when you liquidate, you get your money back corporate clients, as a rule, they will not be able to - there will not be enough to pay off the remaining assets of the liquidated bank.

The geopolitical crisis that is taking shape in relations so far between only two countries, as well as the cool attitude of other states to what is happening between the Russian Federation and Ukraine, leaves its mark. It is not clear to businessmen what to expect in such a situation. It is not clear which companies will be able to survive this crisis and what investments will not only save, but also increase the invested money.

Under long-term financial investments refers to investments in securities of other enterprises and the state, investments in authorized capital for the purpose of participating in management, loans granted to other enterprises for a period of more than a year to receive income in the form of% or dividends or increase the value of capital.

Long-term financial investments are investments in financial assets enterprises and, as a rule, are not related to the main activity of the enterprise and do not affect the increase in income from the main activity of the enterprise.

Investments of the enterprise in securities (stocks, bonds) that are bought and sold on stock exchanges and for which it is possible to accurately determine market value(quotation), should be reflected in the balance sheet of the enterprise at market (current) value. Legislatively (TC RF), such a requirement is established for professional participants securities market. However, in order to provide more accurate information about the assets of an enterprise, it is advisable for all enterprises to revalue their investments in marketable securities with a significant change in market value.

If an enterprise owns more than 50% of the shares of another company, then such an enterprise is required to submit consolidated reporting, i.e. combined financial statements of a group of enterprises. The main purpose of compiling consolidated financial statements– present the activities of maternal and subsidiaries as the activity of a single economic entity. AT consolidated balance sheet listed together assets, liabilities and equity both parent and subsidiaries. Similarly, the income statement, cash flow statement, statement of changes in equity will present information about the group of companies, including the parent and subsidiaries.

In addition to the above main items, non-current assets include the following:

Profitable investments in material values - investments in property - buildings, premises, equipment and other valuables that have a material form and are provided by the organization for a fee for temporary use in order to generate income (rent) - the lessor.

Construction in progress- used to summarize information on the costs of acquiring the above assets before putting these assets into operation and accounting for the corresponding account, which reflects the costs of construction, installation, commissioning, and the costs of acquiring non-current assets.

Deferred tax assets - part of deferred income tax, which should lead to a decrease in income tax payable to the budget in the next reporting or subsequent reporting periods (PBU 18/02).

As a rule, these articles are not considered from the point of view of enterprise capital management, because. are temporary (construction in progress) or contingent (deferred tax assets).

Long-term financial investments are investments of free funds of an organization that are not related to its own production in order to generate income, the maturity of which is more than one year. Financial investments are also considered long-term if no maturity date is set. In this case, by default, the long-term nature of such investments is assumed.

Long-term financial investments primarily include the funds of the organization invested in share in authorized capital other organizations that can be both on the territory of the Republic of Belarus and abroad. It is also funds used to purchase shares and bonds that do not belong to the same company. As long-term financial investments, loans issued to organizations for a period of more than one year under debentures, as well as all other ways of placing free funds of the organization, aimed at generating income for a period exceeding one year.

The most common among long-term financial investments are contributions to the authorized capital of other organizations. They are produced as in cash, and in the form of investments in fixed assets, intangible assets, as well as goods, raw materials and materials. In addition, they are carried out in the form of a contribution of other values.

Less often, an organization makes long-term financial investments in the form of buying shares in other enterprises if these enterprises are known to bring consistently good profits. Such investments are made in order to extract a permanent stable income for several years, or in order to influence the financial, pricing policy of the enterprise.

The securities acquired by the organization must be reflected in the Book of Securities Accounting, which must be bound, sealed with the seal of the organization and signed by the head and chief accountant.

But at present, under economic crisis most organizations operate with a low level of profitability and even unprofitable, i.е. the size of the net profit of enterprises after taxation is low, or often none at all. As a result, enterprises bring low dividends to their shareholders and are low-liquid assets. Therefore, we can say that they are not of great interest to depositors and investors. In addition, another disadvantage of this type of investment is the high risk of depreciation. Depreciation of long-term financial investments occurs when the value of these financial investments decreases. At the same time, such a decrease should be sustainable.

23Apr

What investments are called long-term

Investing your own funds in any objects for the purpose of making a profit is quite common today. This is called investing.

Many owners of capital resort to it in order to increase their own assets and increase the production volumes of the enterprise. Individuals spend the income received on large purchases, and some use investing as their main income.

Investments can be of different nature. It depends on the time during which the investor plans to receive the invested funds and profit.

There are investments:

• Short term. Funds are invested for a period of several hours to one year. For example, you can make a couple of successful transactions on and earn high income for 5 hours. These are rare cases, but they do happen. This also includes popular. It usually opens for a year;
• Medium-term. They last from one to three years. In this way, you can earn interest on bank deposit, the stock market or by buying a stake in ;
• Long-term. The implementation period is three years. Most often it does not exceed 5 years, but it can drag on for several decades. The latter option is typical for global ones, which are inherent in the state in the domestic and foreign markets. This is the construction of large international facilities, such as an airport.

In this article, we will focus on long-term investments. This area is finding more and more adherents, because, unlike short-term investments, it can bring a stable high income.

Such investments are more often made by large enterprises or private investors with large savings. Small amounts do not appear here, since the risk of a quick loss of funds at the initial stage can lead to a complete loss of investments. With large amounts in this regard, it is easier, if a part is lost, then you can return much more.

Most specialists do not distinguish between medium-term investments. They believe that long-term investments allowed to be taken into account with a period of one year. Thus, the term of long-term investments can last from 12 months to five years (in most cases).

What are the pros and cons

Considering long-term investments as an investment, many rely on their benefits.

Pros:

• They can bring high income in a few years, which will be permanent (today you will invest, you will wait for a few years to pay off, and then you will be able to receive net profit without investing your own money);
• Perhaps your savings will pay off more than once (that is, during the life of the project you will be able to get a super-large return several times);
• Money is constantly in circulation, which means that with a successful development of events, you will not be left without income;
• They are not affected by short-term market fluctuations (you can lose part today and gain more tomorrow. This option will not work with short term investments, which are highly dependent on market volatility).

Despite the impressive advantages, these types of investments do not attract all investors, because. there are also disadvantages.

Minuses:

• There is no possibility (you have invested now, and you will receive the first income in a few years);
• You can lose all funds. This happens in the case of illiterate management. Funds are invested in a promising project, but there is no specialist to promote it;
• Lack of liquidity (impossible to wrap funds during the investment period). You will not be able to take part of the money from the project for your own needs. Otherwise with the idea long term investment will have to say goodbye.

We divide investments by types

There are several forms of long-term investment.

They can be classified by objects:

• Financial(investment in any securities: stocks, bonds, futures, options, etc.);
• (injection of assets into construction, production development, personnel training, etc.).

According to the stages at which the development of the project is located, investments are distinguished:

• Completed(means that the project has been implemented or the investment goal has been achieved). For example, you are in a house at the construction stage. When the building is put into operation, you can already dispose of your property, that is, the construction object is completed;
• unfinished(you have not yet realized the main goal of investments). Here, the initial investment process, when you have just deposited assets, and the stage close to completion can be considered.

Methods of long-term investment depending on payments:

• With one-time income(that is, you bought an apartment at the development stage, and after putting the house into operation at a higher price);
• With distributed profit(in this case, after the completion of construction, you decide on. Income will be received at the regularity described in the lease between you and the resident).

Investments are also:

• State;
• Enterprises;
• Individual.

Classification of infusion of funds by purpose:

• Strategic(your goal is to take over a company. You buy shares in a company until your block of securities gives you the right to a decisive vote in the management of this company);
• Aimed at generating income(you only want to increase your capital and do not count on participation in the management joint-stock company).

Sources for investments

In order to invest, you must first think about where to get the funds for these purposes.

There are two forms of financing long-term investments:

• At the expense of own funds;
• Due to attracted assets.

When there is money for investment purposes, this allows you to build up. But you should understand that you must have exactly available funds, the absence of which will not worsen your financial position. Otherwise, if the result of the transaction is unsuccessful, you may lose your own funds that you needed for other purposes.

If personal savings are absent, then you can use the attracted ones.

They consist of:

• Loans (most often from bank resources);
• Assistance from the budget;

For the purpose of long-term investment, you can take a bank loan or borrow funds from friends. An enterprise can use a loan from another company at a small percentage. For individuals this may turn out to be unprofitable, since the rates for bank loans do not cause a desire to get involved in a dubious adventure.

If you are 100% sure of the successful implementation of the idea and have calculated everything possible risks you can also take out a loan. However, under unfavorable circumstances, you can lose not only the money you borrowed, but also remain indebted credit institution for several years.

If you already have your own small company, you can count on funds from the budget. The state singles them out for significant goals within the region and the country. For example, you are going to develop . This will require documenting yours and its further consideration by the local administration.

Attracting investors is beneficial if you want to finance. For example, you have already invested your own money in . You have an interesting idea, which in the future can turn into a large influx of funds.

If on this moment you do not have the finances to implement it, you can, competently presenting your own thoughts to them. For these purposes, a business plan is created, which contains all the technical points and calculations for the project.

Financial and real investments

The main essence of long-term investments is their division into investment objects. Most often, the components of real investment become the subject of long-term infusions of funds.

The composition of long-term investments may include investments in:

• Building;
• Purchase of equipment;
• Repair of existing equipment;
• Licenses;
• Patents;
• Trademarks;
• The latest developments;
• Research work.

Most often, this form of investment is typical for enterprises or the state apparatus. Private investor, in the presence of large sums, can afford to buy real estate, cars or sponsor some company on favorable terms.

Transactions with such objects take place exclusively on a long-term basis. Income from this kind of investment can be received at least in a couple of years.

Another thing, financial investment on a long-term basis: they can be placed for a period of one year and do not require bulky investments from their owner. This type of income generation is also common among individuals. The latter mainly transfer their savings to a qualified intermediary who, for a fee, provides the services of a financial advisor.

Financial investments are typical for currency and. You can use platforms for this purpose brokerage companies, as well as place funds in units of mutual funds. When you buy stocks, bonds, forwards or currencies, you thereby become an investment participant.

We buy securities

The most common examples of long-term investments are securities on stock market. Today you buy, for example, shares at one price, and a year later you sell them at a different price and make a profit. This is the principle on which financial investment is built.

The most important rule is not to succumb to the volatile flow of the stock exchange. This is a process that involves the change in the value of a security during a day or a longer period.

If the volatility is temporary, you should not be afraid for your own funds. With a natural fall in prices, it is necessary to get rid of an unprofitable asset in time so as not to lose funds entirely. It is better to replace it with another one.

When making transactions with securities, it is recommended to buy at the moment when the price of the asset has fallen to the minimum level. In this case, you can get the maximum income in the future.

Strategic investment

Let's understand what is meant by investment strategy. Long term investment often strategic. This means that an enterprise can set a specific goal for the time of injecting funds into a large object.

Most often, this goal does not imply income at the initial stage, but has a strategy for future control actions in relation to the investee.

For example, big company may set a goal - to make another company its subsidiary. For these purposes, she gradually buys up shares on the stock market of this company. This process takes several years. During it, a large company does not plan to give up its goal and pours all newly appeared free funds into the purchase of shares.

As soon as the holding of securities becomes impressive and gives the right to a controlling vote at the shareholders' meeting, a large company proceeds to the most important stage. It announces the decision to join the investment object. In the future, she receives profit from the activities of the new branch.

We invest in construction and real estate

Buying real estate for income is common not only among large enterprises, but also private investors. Buying an apartment in a house that is still only on paper, you can incur minimal costs. Once the building is built, there will be two options for making a profit. It is called .

Firstly, you can sell such a property for much more expensive than the price purchases. And you can also rent it out. Secondly, investments will pay off in a long period, but they can bring much more than just selling an apartment. Subsequently, you can find a buyer for rented housing.

The main disadvantages of long-term investment in real estate:

• The possibility of losing funds if the project is not implemented due to the fault of the developer;
• Over time, real estate loses its value, and therefore you need to know when it is better to sell it;
• The building is constantly in need of repair, and these are additional funds (especially if it is rented out);
• If the premises are empty due to the absence of customers on it, then the owner can only receive losses.

It is important to consider that it is better to buy such objects during a calm period in the real estate market. Then you can buy a room at the most favorable price. For example, it is better to buy an apartment in the summer.

How to invest in vehicles, equipment and other machinery

It is common today. It means the delivery of equipment for a long-term lease with subsequent redemption. This is a fairly convenient process that allows you to invest.

Example. You buy a car and rent it out. Once vehicle paid off, you can sell it. The main thing is that the condition of the vehicle allows this to be done. This is the disadvantage of investing in large machinery, equipment and so on. Equipment wears out and requires regular maintenance. In some cases, repairs will cost large amounts, which exclude the expediency further use investment object. If you allocate funds for repairs in a timely manner, and not use them only for personal purposes, then you can receive a stable income.

We develop production

Invest in own enterprise is a prerequisite successful business. If you allocate funds for the purchase of new equipment, repair existing ones, and also constantly improve the skills of your staff, you can turn a small enterprise into a big business.

At first, this process will be very costly, but in the future it will pay off handsomely. Own business always requires investments and often in terms of money. In order for a company to develop and increase its turnover, it is necessary to increase productivity. This will bring good profits and allow you to occupy a certain niche in the market.

Income from gold

For the most part is. You buy a few grams of gold and wait for it to rise in price.

There are two significant downsides here:

• You will not be able to buy an ingot at a nominal price, as the seller bank makes its markup. Consequently, the profit will be less;
• Gold is subject to a special storage system, which also costs money. You will not be able to keep the ingots at home, as even any imprint on it will reduce its value.

So that the investor does not have contact with precious metal, banks came up with . They assume that you are buying gold, but you are not buying bullion as such. Gold is written only on paper. You are only dealing with money from the difference in the price of buying and selling.

Where to get currency

Does not remain aloof and notorious Forex market. On it, you can buy currency, and then sell it at a higher price. There are not so many fans of this process, since the investment process is more like a roulette wheel.

The winning percentage is quite small. This is due to high volatility, which can “eat up” your capital in seconds.

essence foreign exchange market- purchase currency pair and tracking price changes. Most often, only professionals and only those who have decent amounts of money are engaged in such activities. An ordinary investor has nothing to do here, since with small investments you can instantly lose money.

How to become an investor

Long-term investments require careful preparation and informed decisions. Any careless step can deprive you of the initial capital. Here you need to carefully consider each step and evaluate all possible risks.

If you want to become an investor in a long-term project, follow the recommendations:

• Decide on the object of investment. Choose what is important to you, how much income you want to receive. It is better to look for the area in which you are well versed. Your income and further mood for investing depend on this step. The amount of investments also plays an important role: if it is impressive, then you have a large number of tools for earning;
• Once an object is selected, learn as much information about it as possible. Browse websites, reviews, TV shows, listen to the news. Do not neglect reading special literature. Often it contains more practical points than on the Internet. You can attend various seminars, training and training courses. The most valuable information can be obtained from the lips of an experienced investor. Therefore, try to find such a person;
• Make a forecast for a possible turn of events. Here, consider all the nuances of the chosen direction. Calculate the possible minimum and maximum profit. Consider the most unfavorable events and their impact on the investment object. Compare the possible risks and your desire to part with hard-earned savings. You must calculate absolutely everything in order to know how to react to this or that situation in the future;
• Now you can start the investment process itself: engage in the purchase of investment instruments (securities, currencies, machinery, equipment or training courses for staff);
• We monitor the situation on the market and the state of your assets. If you notice a trend of a sharp decline in prices, which is steadily gaining momentum - do not wait until you are left penniless. For example, if you sell them, and use the proceeds to buy securities of another company;
• We analyze the process. A kind of investment audit. Follow the movement of your capital. If there is income, be sure to write down its size, taking into account initial expenses. So you can determine the effectiveness of invested funds and get rid of illiquid long-term assets in time.

Risks of long-term investments

Long-term investments imply a high risk for the owner of the capital. It is difficult to predict what the economy will be like in a few years, and therefore the forecast of investment efficiency is not easy to calculate.

There are the following main risks of this type of investment:

• The chance of losing everything at the initial stage is quite large. This may be due to ignorance of the business area or an illiterate asset management system. At small investment for a private investor, this risk increases several times;
• Long payback. It is possible that your invested funds will not return at all soon, and this is fraught with additional costs to maintain the life of the project;
• No one guarantees income at the end of the investment period. Even an experienced specialist cannot calculate a 100% forecast, and therefore the result may be unexpected and far from in favor of the owner of the capital.

Inflation also increases the risk of long-term investments. If its pace is steadily growing, then your income will eventually turn out to be less than planned.

The unstable situation in the country is also not best time for long term investment. Further uncertainty and uncertainty about the future day can cause disappointment in the investment process.

We determine the effectiveness of investments

To understand whether investments will be profitable, an analysis of all aspects that may affect them should be carried out.

The principles of justifying the effectiveness of investments include:

• Definition minimum amount possible income. For these purposes, it is necessary to calculate the cost of funds that can be obtained in the event of the liquidation of the project itself. For example, if you invested in stocks, then you need to calculate their liquidation value. It consists of the sum of all assets of the enterprise divided by the total number of shares. The price received is the one that will be paid to you if;
• Comparison salvage value and actual. Again, consider the example of securities. Talk to stock exchange and find out the stock quote at the moment. If, at the same time, the liquidation price is higher than the market price, then such an asset is considered undervalued. This means that the company has great potential, which means that its shares can grow several times in the near future;
• Asset valuation. Using the same stocks as an example, you need to find out what approximate income you can receive from them. Shares can increase in price, and they also provide for the payment of dividends. If the value rises, and dividends are paid on time, then the company is gaining momentum. How larger enterprise, the lower the value of their dividends as a percentage. Also, when investing in companies that have appeared on the market recently, expecting dividends at first is a pointless exercise. But as soon as the volume of sales of the joint-stock company grows, you can count on additional income in the form of dividends.

Also, when managing long-term investments, it is necessary to pay attention to such factors:

• on the market;
• The speed of innovation;
• The state of the economy in the country.

The effectiveness of long-term investments cannot be accurately calculated. The approximate amount of income based on the calculations made may also not correspond to reality, since the situation in the country and new events can dramatically change the direction of the asset price.

The ratio of the investment structure is also important, which determines the diversification of the portfolio (if you invested in different types securities, it can generate more income and save money).

Accounting for long-term investments

Long-term investment is a capital flow that must be recorded on the balance sheet of the enterprise. They are accounted for as non-current assets on account 08.

The purposes of investment accounting are:

• Complete and timely reflection in the balance of all funds allocated for investments;
• Control over all stages of the project;
• Reliable reflection of the inventory value of assets;
• Supervision of a long-term investment fund (it must have a sufficient amount of assets).

For example, an enterprise decided to invest in its own production and bought a machine for 155,760 rubles, taking into account. In the line of balance reflecting fixed assets, as a result, the cost of the equipment and the price of its delivery will be reflected - 9040 rubles, including VAT.

Based primary documents reconciliation of amounts and calculation of VAT takes place, and in accounting this will be reflected in the following way.