Investment of funds
under an investment of funds (English. financial investment) one understands the investment about money. A goal is to be gained it ideally an increase in value or a yield to obtain at least however the material value. By saving become the necessary funds foran investment of funds made available. Among the Ge or consumption acquired goods are not ranked as investment of funds. The investment of funds includes also the investment also.
The investment of funds can
- by direct investment with a trustworthy business partner
- with a bank by the acquisition of savings products
- on the capital market by the acquisition of shares or obligations takes place.
By the plant the financial source does without the direct Nutzniessung (e.g. consumption) of his capital. For this renouncement it becomes at present from the capital taker with a net yield in the minimum heightat the capital market of valid interest rate without risk compensates. If the debtor cannot exhibit the highest soil quality, the financial source a further interest addition receives e.g. possible future inability to pay or bankruptcy of the borrower, or uncertainty for the paying off of debtor-conditioned risks like concerning thatHeight of future refluxes of capital (e.g. with dividends). Since the interest rate risks with the running time of the investment grow, the financial source for a longer running time will also require higher interest rate without risk, than with an only short term investment of funds. Form for a given timethe different interest rates for different running times the interest structure curve.
Table of contents
goals of the investment of funds
an investment of funds can the following goals pursue:
- small risk: The investment of funds should be as surely as possible, i.e. the fluctuations in value and the probability of the loss of the assigned capital should be minimized.
- high Net yield: The investment of funds should throw as high a yield as possible off within a certain period.
- high liquidity: The investment of funds should as fast as possible again made money (i.e. ) to become generally sold to be able. (see also Fungibilität)
these goals behaveto each other competing, i.e. not all goals can be completely fulfilled. One speaks in this connection of the dilemma of the uneasy triangle of the investment of funds. Also the fiscal situation moves additional increasingly into the focus, i.e. with many investors. the influencethe tax on the selected plant form. With private investors accordingly the net yield is decisive after taxes, since a capital income is free of income tax. Shares are subject for example to the half income procedure, while funds are taxable with under-year old sales to 100%.
examplesfor forms of the investment of funds
- cash in own administration (e.g. the proverbial “saving trunk”)
- deposits at call
- savings deposits such as passbook and savings letters
- of government notes of the federation
- securities at fixed interest
- fund, share fund
- real estates
- gold and other precious metals
- art possession: Stamp, painting, carpets, Antiques
- certificate of indebtedness and/or. Change
- of mortgage bonds
- capital life insurances
- historical coins, plant coins (e.g. Krügerrand)
- ethical investment of funds
- noble wood
savings deposits: Standard agreement
with savings deposits mostly does not act it around „the normal “savings account in such a way specified, with that it specialAgreement with the savings bank and/or. Bank over the running time requires.
Interest charges: The interest usually lies between 0,5% and 2%.
Availability: Per calendar month can be taken off up to 2.000 euro. If the saver wants to take higher amounts off, then he must 3 months before well-informed, D. h. communicate to its savings bank that it in three months z. B. 8.000, 00 euro to take off wants. If it cannot keep the term of notice, then one will disburse it nevertheless the desired amount, must he then alsoa slight deduction of interest discount, which count advance interest so mentioned.
savings deposits: Term of notice over 3 months
interest charges: the interest rate for these savings deposits is higher than for „the normal “ passbook. The longer the agreed upon term of notice, the more highly is the obtainedInterest.
Availability: With savings deposits terms of notice of one or of four years are usual; possible are also different agreements. It is to be noted that according to the laws to the notice a waiting period of 6 months applies after the deposit. Usuallyalso for premium-favoured and fortune-effective savings deposits considering the longer running time a higher interest rate than with is paid legal term of notice.
who a money for one period between 4 and 6 years to put back would like, can a savings bank letterover any high amount (minimum amount: 50€) acquire. The savings bank letter is a security, in which a demand is confirmed by a document opposite the savings bank.
Interest charges: Savings bank letters usually bring in a higher interest than the investment of funds on a passbook. In contrastto this the interest rate for the entire agreed upon running time is certain. For the interest charges there are two possibilities: The buyer deposits the nominal value and receives the agreed upon interest annually or half-yearly disbursed or credited similarly as with a deposit book.Besides there is in such a way specified „abgezinsten “savings bank letter, with which the buyer pays only the nominal value less the interest, which results at run time.
Availability: The equivalent of a savings bank letter can be had only after the expiration of the agreed upon running time.If the buyer needs the money however in former times, then he knows the savings bank letter beleihen to leave and of the savings bank a credit in appropriate height get.
with this plant form connects the saver the goal, housing or house property tooacquire or already existing property to improve. Who locks a savings agreement for building purposes, requirement on a interest-favorable saving loan with a building company not subject to notice has after saving a part of the building savings sum (40%) and at expiration of one minimum period (18 months). The height of the loan corresponds to the differentAmount between the building savings sum (over those the contract is locked) and savings balances at the time of the dispatching. While the asset interest on a building savings account is comparatively small, there is the interest for the loan likewise. Does not become the loan in requirementtaken, the savings agreement for building purposes thus only for saving related, many building societies later improve the asset interest up. See:Collective building saving
securities at fixed interest
by the expenditure of securities at fixed interest, which offer the credit institutes for the purchase, become means for larger projects (investments)applied. Mentioned are here mortgage bonds, with which funds can be procured for housebuilding; Municipal bonds, loans of federation, federal courses and Federal Postal Administration, around means z. B. for the development of trade areas, canal construction, to get development of traffic and telephone network.
Interest charges: ThoseAverage yield of securities at fixed interest knows z. B. about 5-6 per cent are. It depends on the situation at the capital market (stock exchange).
Availability: Securities at fixed interest have certain running times, which lie generally between 5 and 10 years. After this time those becomePapers to the nominal value, D. h. the imprinted amount, paid back. Who would like to convert the securities before the intended redemption date into money, she can sell at any time over Kreditinstitut at the stock exchange. Then it is not guaranteed however that he receives the bond issuing price(mostly under 100%, D. h. under the nominal value, is), but is paid the respective current rate, which is determined at the stock exchange. The current rate can be over or under the bond issuing price. Thus securities in the course sink, if their interest charges loweras those is appropriate for the again spent. They can rise in the reverse case - if the interest at the capital market sinks - in addition.
a portion right at the capital stock of a corporation confirms shares by a document a share at height of its nominal value.Shares are acted at stock exchanges to the exchange rate value, which results from supply and demand.
Interest charges: Shares confirm a portion by a document of the profit (dividend right). The height results from the rate of dividend, which refers to the nominal value. It is dependentof the profit situation.
Availability: Shares can be bought and sold usually at any time. Kursverluste or profits on exchange can result.
investment companies (Kapitalanlagegesellschaften) buy securities of different kind, z. B. Shares and mortgage bonds. They form togethera special estate, also fund mentioned. Who buys a Investmentanteil, a joint ownership possesses to fractions at this special estate. Its value depends on the current rates of the securities, which are contained in the fund. The Investmentsparen is the basis the principle of the Risikostreuung. Ifthe courses of certain papers of a fund sink, then can become balanced by Kurssteigerungen with other papers.
Interest charges: (=Ausschüttung) yields, z. B. Interest, dividends, profits on exchange from the fund assets, can be distributed annually to the owners of the portions. The height that„Payments “depends on the yield of the securities contained in the fund and/or. properties with the real estate funds. One can compute the height of the interest charges, by determining the proportional portion of the payment of the price of the portion light.
Availability: Investmentanteile haveno firm running times. Who would like to back-have its money, can the portions over its Kreditinstitut sell. Of the development of the value of the securities contained in the fund and/or. It detaches real estates whether with the sales of a portion more or less one releasesas with the purchase on it one spent.