The nature, definition and types of investments

Investment is the capital investment subject to anything to subsequently increase their income.
Necessary element of the process is to replace worn-out assets with new ones. However, increased production can be carried out only due to new investments aimed not only at creating new production capacities, but also on the improvement of old equipment or technology. That is what makes economic sense investment.
The investment is seen as a process reflects movement of value, and as an economic category – economic relations connected with the movement of the value invested in fixed assets.
Set of costs is a long – term investment in different areas of the economy, is implemented in the form of targeted capital investment for a certain period in various industries and sectors of the economy, as well as in the objects of entrepreneurial and other activities to generate income. The concept of "investment" means investing in sectors of the economy not only in the enterprise but within the country and abroad.
Investment is putting money aside for the next day to have the opportunity to get in the future. One part of the investment – consumer goods, they are deposited to the reserve (investment increase in stocks).
But the resources allocated for the expansion of production (purchase of buildings, machinery and facilities) is another part of the investment.
Investments are divided into:

1. intellectual – is aimed at training and retraining courses, transfer of experience, licenses and innovation, joint research and development;
2. capitalbridge the cost of capital repair, acquisition of land plots;
3. direct investments made by legal entities and individuals entitled to participate in the management of the enterprise and completely owning the enterprise or controlling not less than 10 % of the shares or equity of the enterprise;
4. portfolio – not entitling investors affect the operation of firms and companies, investing in long-term securities, purchase of shares;
5. the real long – term investments in branches of material production;
6. financial and government debt;
7. hoarding – the so-called investments made with the purpose of accumulation of treasures. They include investments in gold, silver, other precious metals, precious stones and articles of them, as well as in items collector's demand.
   A General specific feature of these investments is the lack of current income on them.