What is investment?
The concept of investment in general, aims to achieve material profit in the long run.
He will make profits.
The difference between investment and ingenuity?
Stones mean that you deduct part of your income, and keep it in its form as a backup
As for investing, it is directing part or all of your money to an industry to achieve financial profits
What is the benefit of investing?
Investment represents the most important aspect of achieving material wealth, as well as preserving capital
Long-term and short-term investments are the only way that guarantees you a huge financial wealth, as it makes you achieve huge additional profits while retaining the financial value of the assets that you invested.
Many types of investments do not require much effort, such as requiring you to have experience in management, or to be present at the project site and supervise it in order to ensure that you reap large profits.
Is investing risk?
• The instability of the financial markets and the volatility of the markets, as we mentioned previously
• Inflation and price hikes
• Lack of experience and knowledge of the investor, and his inability to deal flexibly with economic changes
• The political conditions of the country
What is real estate investing?
Real estate investing is buying real estate as an investment to generate income rather than using it as a primary residence or workplace
Real estate or property is one of those investments that have a physical presence and can be touched and seen
How do I start investing in real estate?
Before you take the step of investing in real estate, you must know that there is a great diversity in real estate investment and also you must know and study the real estate market well and know the most high-demand places in the real estate investment market in Egypt
Questions to ask before investing
Prices of rents and real estate in a particular area?
Is this area commensurate with the money I want to invest?
Are there services and facilities near the property?
Are the papers of the property to be invested in sound?
Investing in commercial real estate:
It is one of the best types of successful investment in the property, transactions with traders or companies have a great advantage because commercial companies are more interested and experienced in the sense that they can not afford to delay the payment of rents and do all repairs and damages within the property.
Residential investment: How do I invest in residential?
It is the most stable way in terms of the length of the residential rental period and the guarantee of fixed monthly rent, easy access to tenants
But there are some drawbacks, such as periodic maintenance expenses to maintain the shape and value of the property.
Is investing in real estate in Egypt profitable?
Investing in real estate is a long-term approach and delivers high profits in the future at a low risk level
Real estate investment is a good and convenient source of income. Whether you’re looking to earn a quick return through wholesale, flipping and property restoration, or earning a steady income from renting real estate
– The value of real estate increases over time
– Your investment will remain tangible, something that belongs to you compared to other types
– If its price does not rise, it will maintain the capital
– Provide a fixed monthly income from the rent of your unit
And since markets have a lot of volatility, it won’t happen one day that your property is equal to zero.
Is real estate investment risky?
The real estate market is like any market that is exposed to fluctuations and tremors that is affected by political and economic conditions and every market has its disadvantages and advantages
But the disadvantages of real estate investment do not amount to serious risks as you may face some problems or defects such as:
– Real Estate Bubble
– Decline in the value of rents
– Rent does not cover the value of the premium when investing in a property in installments
– You can’t sell part of an investment like stocks for money
– You may face the lack of tenants for your property
Investing in the stock exchange:
What is the stock exchange?
Is the market through which the original (trading process) is sold and bought such as corporate shares or oil contracts and therefore the exchanges provide companies, governments, other groups and individuals with a platform to sell and buy securities with the investor public
Therefore, the word stock exchange is not limited to corporate shares only as we are interested in exchanges for commodities such as oil, gold, bonds or derivatives and other assets.
Stocks and indices:
Stock:
Shares offered by a company on the stock exchange are a ownership stake available for public trading and this allows the total value of the stock to be determined by supply, demand and expectations by investors and analysts.
Assuming that the company makes good profits and is expected to invest more money for expansion, investors will try to buy shares, since the stock is subject to strong supply, demand and future expectations, the value of the stock will rise.
In such a case, it is profitable for the old investor to sell his holding in a process called “profit-taking”, where the investor sells the original after the price rises above the purchase level to take advantage of the difference.
Indicators:
As for the indicators, they are a measure that calculates the average value of the shares of listed companies and has a digital value that climbs and falls according to the changes in the share prices it contains.
The benefit of these indicators is to reflect an overall picture of the market as a whole or perhaps a particular sector of companies that share certain features, such as an index of the largest companies in the country.
Advantages of investing in the stock exchange:
1- The stock exchange represents a good opportunity to invest freely and transparently, subjecting companies that list their shares on the stock exchange to additional financial rules requiring them to be disciplined, disclose financial statements and fundamental changes.
2- A new generation of brokers based on electronic applications has emerged in some countries
3- The individual can start investing in low amounts and the individual can start with a small amount to learn how to invest in the stock exchange without risking big money
4- Easy to sell so that if you want to get the money you will easily be able to sell some of its shares at any time
Defects or problems of investing in the stock exchange:
1- The risk rate is high
2- The value of the investment can be lost in full if the share price falls to zero
3- Needs consultations, analysis and a precise plan to make a profit
4- Market risks. Investing in the stock exchange is affected by economic conditions on the performance of companies such as inflation, unemployment and other political conditions.
5- Liquidity risks, which are related to the investor’s inability to sell shares or bonds and convert them into cash flow at the time you need money
6- Inflation risks may cause inflation in a market such as the real estate market investors sell their shares and buy in the currently high shares
Investing in gold:
Firstly we must know the benefit of investing in gold is to keep the money that individuals resort to in time of economic obligations and there is more than one way to invest in gold.
How can I invest in gold?
1- Through the spot exchange “Forex”
2- By buying or selling a quantity of gold on a specific date in the future but it is not suitable for small investors because it needs the ability to analyze future movements
3- Buying gold directly from jewellers’ stores in the form of jewelry, alloys or gold pounds, storing them or keeping them at home or in the bank
The advantages of investing in gold?
1- Gold is not affected by inflation or the dollar price, no matter how bearish gold moves will bounce back and raise its prices again during the year
2- Provides the greatest flexibility so for example gold can be purchased in grams depending on the amount you want to invest
3- Easy import of the amount invested it is very easy to sell gold within hours
4- Investing in gold is ideal for short-term and long-term investment
The disadvantages of investing in gold?
1- The price of gold is not fixed and the value of your investment may decrease according to market conditions
2. Difficult to store
3- Maintaining and securing it
4- It will not achieve the expected profit or the return you can invest in
Investing in precious metals is risky
Is investing in gold profitable?
The masses of financial analysts and investors disagreed that gold is a means of fortifying against the risks of other investments it saves the value of the money but it is not valid as an investment tool because it does not achieve a return like other investment methods
On the other hand, fans of precious metal see the opportunity to make a profit on capital through long-term investment in it, meaning buying gold and leaving it for a long time until its price rises to make a profit from the difference in the buying and selling prices.
Investing in certificates:
Because citizens are always looking for ways to save their money and also collect a profit or a monthly return
Banks are considered a destination of different destinations that citizens go to and put their savings in
For example, banks are keen to provide
Savings certificates
This guaranteed them a guaranteed profit when purchasing savings certificates for a certain amount, and this profit is determined based on the value of this profit based on the value of the certificate purchased, and the interest rate that can be obtained when purchasing savings certificates amounts to 11.5% of the value of the certificate.
Investment certificates
Investment certificates are the second alternative to savings certificates, there are a number of banks issuing investment certificates as the best solution
To invest large amounts of money and banks are racing to raise the different interest rate on the value of certificates to attract investors to buy these certificates, and the banks are committed to the interest rate set by the Central Bank of Egypt which reaches 11.5%
Advantages of investing in certificates:
• Investment certificates are very safe securities and their losses are not heavy
• There are many investment certificates that suit all citizens as they start from only 500 Egyptian pounds
Does investing in certificates make a profit?
It’s a way to save money, but it doesn’t yield the expected return.
Defects of investing in certificates:
• The most important disadvantages of certificates are the weakness of their profits or returns at all levels of the bank’s variable interest
• Being restricted by a time factor in order to obtain your money makes the customer lose part of the interest if the certificate is withdrawn before its due date
And also there is a difference that the interest of banks is forbidden
Invest in real estate, gold, bank or stock exchange?
Real estate is the most profitable and the least exposed to market volatility.
The stock exchange is easy to invest in due to the availability of electronic applications
The bank’s certificates are the safest, and there are no heavy losses, but they’re good for saving more.
Gold is easy to sell and save money as soon as possible but it is difficult to take and its price is changing in a fast way