It discusses the universal desire for financial security and wealth building. It highlights the importance of saving as a foundation for investment and outlines a multi-step approach to achieving financial freedom.
It is obvious that with economic developments, rising inflation, and various investment methods that provide investment opportunities for all individuals, saving alone, if it does not lead to wise investment, is economically unjustifiable. Besides the stagnation of capital and the decrease in its value over the long term, it will not yield any profit or return to meet future financial needs.
You can choose your investment advisor from among specialists or investment companies like Pikap Sarmaye, which have years of investment experience, and in this way, by ensuring a return on investment, reduce your investment risk and achieve the desired profit and return within the planned time frame. Furthermore, after becoming familiar with the concept of investment, different investment methods, goals, and strategies will be discussed, so stay with us until the end.
What is investment?
Investment means allocating all or part of your financial resources in an area with the aim of earning income and making a profit in the future. As discussed, saving money not only reduces the value of capital over the long term but also will not yield any significant profit or return.
There are generally a variety of investment methods available, and it is necessary to choose the best method of investment considering your investment goals, the amount of capital, risk tolerance, and the expected time frame for returns.
Identifying the best investment method is not limited to setting investment goals. It’s better to thoroughly understand the different types of investments and, alongside this, to consider your personal temperament and preferences. Because all these methods are profitable for you in the long term, but they have different advantages and disadvantages, and none will be without risk.
Therefore, what matters in the investment opportunity is setting priorities and available resources and then choosing the best method of investment and determining a precise investment strategy with the help of an experienced investment advisor like Pikap Sarmaye, who guarantees the return of your investment to help you make a worry-free investment. In some cases, you have the possibility to invest your money simultaneously in several ways.
Types the Best Investment Method
Investment methods are categorized in different models, but generally, investments can be divided into three main categories: ownership, lending (debt), and cash equivalents.
– Ownership Investment
Ownership investment means taking ownership of something in exchange for money, in the hope that it will generate more profit and value in the future. From this perspective, ownership investment is one of the first methods of investment that people turn to. However, although it is considered the most profitable method of investment, it can have very high risks in some cases. This type of investment includes various forms such as buying stocks, real estate, cars, gold, art, and valuable objects, as well as investing in businesses.
– Buying Gold
The best method of investing in gold, and indeed the most common among the various methods available, is buying and selling second-hand gold. However, this does not mean that buying white gold and decorative gold does not provide an investment opportunity. But second-hand gold, since it is not decorative and will be melted down, does not carry a commission and is not subject to any tax. Therefore, over the same period, compared to white gold, which contains other metals such as palladium, it will be more profitable. Additionally, other methods such as buying and selling gold bullion, purchasing coins, and ultimately investing in gold equity funds are available for those looking for investments with minimal capital.
– Buying Real Estate
When it comes to investing in real estate, perhaps the best investment method that comes to mind is buying land or a property, with the intention of benefiting from rental income or selling it in the future at a higher price. However, participating in housing construction and also buying old houses and renovating them to create added value at the time of sale are also types of real estate investment that create investment opportunities simultaneously in different sectors.
– Buying Vehicles
This type of investment often includes buying cars at factory prices and selling them at a higher price, buying and selling nearly new used cars, buying accident-damaged cars, repairing and selling them, and also buying and renting expensive and luxury cars. The car buying and selling rates are always influenced by the dollar rate and raw materials, but apart from this, the impact of Chinese cars entering the Iranian car market cannot be ignored.
In order to make a wise investment in the car market, it is necessary to know the popular and high-demand cars, be familiar with the technical issues related to cars, and be able to determine the best times to buy and sell. Perhaps this is why the car market is controlled by a handful of professionals, and few among others consider investing in cars. However, you should be aware that cars depreciate and their price will decrease over time from production. Therefore, you must continuously monitor market fluctuations and the online platforms that facilitate car buying and selling, to act at the best and nearest possible time before the purchased car depreciates.
– Investing in Cryptocurrency
– Buying Stocks
Buying stocks is essentially the acquisition of a share resulting from the division of a company’s assets into equal units, which are issued by public companies to finance their needs in the stock market. A shareholder is always part of the company’s profits and losses, and the value of their shares may decrease or increase over time. In return, the company grants rights such as benefiting from the company’s profits and the right to vote in general meetings to the shareholder, but the shareholder cannot claim ownership of their share of the company’s assets until the company is dissolved.
Stocks, which are purchased as securities by an investor, come in various types, and buying and selling them in the stock market requires sufficient knowledge and experience. Indeed, this type of investment is best suited for individuals who have ample experience in the financial markets and the ability to conduct fundamental and technical analysis of the stock market; otherwise, it would not be a worry-free or secure investment. Although the stock market has been one of the most profitable investment platforms in recent years, it is also considered one of the riskiest. As much as the value of stocks can multiply over the long term, there is equally a possibility of sudden capital loss.
– Investing in Businesses
It doesn’t matter whether you invest directly in your own business or indirectly by providing the financial resources needed by a startup, investing in business and entrepreneurship is the most profitable type of investment and the best method for those who seek not only ongoing income but also an increase in their principal capital value. Investors who create their own businesses not only create job opportunities for people and play a significant role in the economic growth and development of the country, but they will also be able to achieve high profits in the long term by having a precise investment strategy and thereby producing bestselling products or products and services in high demand.
– Buying Art and Valuables
Investing in art pieces has been particularly attractive in recent years, showing a remarkable annual return of approximately 25% on valuable works. Art investments generally do not experience severe price fluctuations and are not affected by economic downturns. Over time, the value of the purchased artwork not only maintains but often increases. However, due to the very specific and limited market for such items, their liquidity is quite low.
Lending Investment
On the other hand, credit investment or lending allows you to provide necessary financial resources to a company by purchasing its bonds and to receive your principal and interest over a set period. This process is somewhat similar to what banks do; by investing your money in a bank, you are essentially funding the bank’s ability to lend to others, with the expectation of getting your principal and interest back on a specified date.
While purchasing corporate bonds guarantees the return of your capital, you will not share in any potential stock appreciation of the company, which could multiply within the same period. Additionally, other securities such as international loans, mortgage-backed securities, commercial paper, and treasury securities also fall under credit investments.
Cash Equivalents Investment
Investing in money market funds provides high liquidity—you can withdraw your money at any time, similar to cash. However, these funds typically offer very low returns, ranging from 1% to 2%.
Investment Goals
Investment objectives often include securing and preserving capital value, generating profits and enhancing financial value, earning income, and achieving tax advantages. Setting these objectives, ideally guided by an experienced investment advisor, allows an investor to choose the best investment method based on their available capital, risk tolerance, expected timeframe for returns, age, psychological disposition, and personal preferences.
Different types of investments can be profitable in the long run, but their benefits, drawbacks, and risks of capital loss vary. For example, entering the stock market and buying shares is not overly difficult and allows everyone to invest with minimal capital. This accessibility is perhaps the most significant advantage of the stock market. Simply visiting a brokerage office and obtaining a trading code can enable online market access and stock trading within a month.
However, without the ability to perform fundamental and technical analysis, a significant drop in the value of purchased stocks may force you to sell at a lower price than purchased, resulting in substantial capital loss. Investing in a business, despite being potentially the most profitable investment through entrepreneurship, revenue generation, and long-term capital value increase, requires significant capital and is very risky if undertaken alone. In this context, collaborative investments may be the best approach for those interested in entrepreneurship.
What makes investing in a business superior to stock trading is the high potential for profitability with careful planning, accurate market research, and effective marketing after startup. Investment companies like Pickup Capital, with specialists in various sectors, provide suitable investment advice from the concept stage through to setup and beyond, ensuring capital return and enabling investment without expertise for all individuals. Bank deposits also offer an investment opportunity with minimal amounts, earning fixed monthly or annual interest, but banks do not work to increase your capital value; it is up to you to manage your capital to achieve returns beyond what the bank offers.
Investment Strategy
Investment strategy is essentially a set of rules and methods that tell an investor, based on existing conditions such as financial resources, age, tactical skills, and predefined investment goals, what the best investment method for them is and what actions to take or avoid to achieve their expected returns within the planned timeframe.
Navigating the investment path, individuals inevitably face the trade-off between risk and profit, and at some point, must accept a degree of risk for higher returns. A carefully planned investment strategy, based on sufficient market knowledge and experience, serves as a safety map for investors on this path. Utilizing the experience of a seasoned investment advisor, like those at Pickup Capital who have years of specialized activity in establishing aesthetic clinics, minimizes investment risks.
Pickup Sarmayeh, with its team of experienced specialists in the establishment of aesthetic clinics, will support you through all stages of launching your clinic, including:
– Services for obtaining Ministry of Health licenses
– Registration of the aesthetic clinic
– Finding a suitable building for the clinic
– Introducing the highest quality devices for purchasing hair removal lasers, rejuvenation, and slimming machines that meet global standards
– Interior design of the clinic
– Clinic branding
– Marketing and advertising after the clinic launch