Capital - what is it and why to create it. The article will tell you how to accumulate capital, explain why it is important to save money. Gives an understanding of the principles of investing. The first in a series of articles on how to create and increase capital.

What is capital.

Capital is the goose that lays golden eggs. In other words, capital is the money supply that is stored in a financial instrument and earns interest on capital. The interest received from the capital is your income, which you use at your discretion.

Everyone at least once in their life thought that having capital is great.

A few accumulate and create capital, few have managed to create capital by setting aside part of what they have earned. Why is it so?

Why so few people create capital.

Because it takes discipline. As in sports or studies, in order to achieve a result, you need to repeat the same exercises for a long time or memorize material in order to master it. So in the creation of capital, it takes 15-25 years to regularly replenish your “money tank” in order to fill it to the top.

As a result, when the "tank is full" the capital will be created and you need to skillfully manage it in order to receive a lifetime annuity in the form of interest on the capital.

Why create capital.

With the definition of what capital is understood, let's see what it is for. People have different goals, I will list the main ones:

1. Create a hereditary mass;
2. Buy property;
3. Buy housing for children;
4. Create all kinds of trust funds.

Having a large amount of money at your disposal, you will carry out the most important life plans. If you agree with the goals of creating capital, let's see what you need to do to create capital.

What to do to create capital.

Determine and be sure that for the next 15-25 years you will earn money and save some of it, and then invest.

Of course, this is not so easy to do - make a promise to yourself for 25 years to earn, and then also save.

But if you "look" back, you will see that you have been earning for 10-25 years and life goes on as usual. This should help you realize that in the future you can do everything.

It is worse not to put off anything and end up with nothing at the end of your life.

To create capital, determine the amount you would like to set aside. Make it simple. Subtract expenses from income and get the amount that you will save every month, let's say it's $ 200.

There is no need to live from hand to mouth and deny yourself everything. You need to approach this issue without fanaticism. You can save $200 - that's great!

Or calculate the amount you would like to receive in the golden years. It is very easy to do this using the calculation of a lifetime annuity. Based on how much you want to receive every month after your career ends, you will receive the amount that you need to save from today.

Next, we select an investment instrument with which we will invest the savings. You can choose on your own or seek help from a financial advisor. As practice shows, people even with earnings of $ 3000-5000 / month. at least they invest money in a bank on a deposit in Russia, at most they buy bonds or mutual funds also in Russia.

But this is not the whole list of investment instruments, then I will briefly talk about the more common ones.

Options for investing in Russia.

Today in Russia there are many investment options, we list some of them:

1. Individual investment account;
2. The property;
3. Deposit;
4. Russian broker;
5. Foreign broker;
6. Insurance company (unit-linked contracts).

I will briefly describe the tools indicated above and the principle of operation.

Individual investment account - (hereinafter referred to as iis) works simply, you invest 1 million rubles a year for a maximum of 3 years. Next, buy securities. Then hold or trade for 3 years. After 3 years have passed, you will receive:

• Invested capital;
• income from securities;
• Tax deduction of your choice;

a) 13% refund of the contribution amount for 3 years, but not more than 52,000 rubles. in year

b) 13% return on investment income.

The main advantage of iis is tax incentives. If you need tax incentives, then IIS is suitable, if you want to invest in order to earn a profit, then this tool is hardly suitable for investment.

An interesting alternative to deposits, but in my opinion there is too much paperwork, and the profitability is not very high, for example, if you choose a return of 13% of the contribution amount for 3 years, then the maximum that you can earn is 52,000 rubles. per year + possible investment income ~ 80,000 rubles. Suitable to put money for a short period, to save from inflation, no more.

The property - we all just take money and buy a property, which we will then either rent out, or resell for a higher price, or we will keep it for a while until certain circumstances (for example, the opening of a metro station next to the house in which you have an apartment for rent in rent) will not affect the increase in the price of the object.

Deposit - it is difficult to call an investment instrument, but as practice shows, people in Russia are rapidly bringing their savings to the bank. The deposit is a tool that works as follows. Sign an agreement with the bank and deposit money into the account. The bank specifies in the contract the conditions under which it takes money from you:

1. Term.
2. Sum.
3. Rules for withdrawing and replenishing funds.
4. interest rate.

After that, the bank manages the money at its own discretion, and within the period specified in the contract, returns the money and income in the form of interest.

The disadvantage of using a deposit is that it will not fulfill the main function of investing - making a profit. At the time of writing, deposits in Russia give returns either at the level of inflation or higher by 1-1.5%. Therefore, if you are going to create capital, then a deposit is not suitable for this.

Russian broker – There are many brokers in Russia, but they work in much the same way. A broker is essentially a platform that provides access to the stock market on specific terms. You open a brokerage account and start making money. Then you make transactions in the stock market - buy, sell and earn profit. After that, you file an annual tax return and pay income tax.

You can also choose a broker and put the money under management, i.e. you do not have to trade securities yourself, this will be done by a professional manager. The entry threshold in this case will be 250,000 for ruble products and $10,000 for foreign currency products.

Foreign broker - a foreign site, everything is the same as with a Russian broker, only some requirements are added:

• knowledge of the language to make transactions with securities,
• be an experienced investor.
• FFMS auditor certificate, CFA.
• At least 2 years of work experience in the Russian Federation or a foreign company.
• on an account or in securities of at least 6 million rubles.

This method of investing is suitable for those who actively trade in the stock market - 4-5 transactions per month, since you can get a fine for passive behavior.

Insurance company (unit-linked contracts) - English method of investing. You open a contract and deposit money, choose the composition of the assets that you want to have inside the investment portfolio and determine the shares.

For example, choose assets:

• US government bonds;
• Shares of global companies;
• Other alternative assets (gold).

• Bonds - 30%;
• Shares - 50%;
• Alternative assets - 20%.

As with brokers, in this case the company is also a platform where you are given access to the global stock market. Determine the assets in the portfolio and their shares, and the company buys shares in funds for you - units.

Thus, having balanced the investment portfolio, having determined the investment strategy, you begin to invest in the global stock market.

Let's summarize some of the investment vehicles that you can use to create capital:

Why not a deposit and income from renting an apartment.

Think for yourself and compare the obvious things.

The yield of a foreign currency deposit in Russia is ~ 3% per annum.

Profitability from renting an apartment ~ 3-5% per annum in rubles.

This is very little! Such profitability either covers inflation, or does not bring anything into your pocket at all.

Income from investing in the global stock market will bring you about 2.5 to 11% per annum in foreign currency, which is much more profitable, which means you will earn more.

It is simply impossible to keep money on deposits and earn money, because inflation "eats" all the accumulated interest.

And in order to create capital and earn, the profitability of financial instruments must be greater than the rate of inflation.

What tool to choose in the end.

If it is necessary to solve long-term financial problems and earn a profit, then the investment portfolio should have a large share of shares.

In this case, you need a tool that, at minimal cost, time and resources, will help you achieve your financial goals.

Also, Russia is a developing country and investments only in the Russian stock market will not give the necessary profit and will be more risky.

To distribute risks, it is necessary to invest part of the capital outside of Russia, and the unit-linked contract will help in this better than all the tools listed above.

With the help, you will legally gain access to investments in foreign countries and this will increase the chances of making a profit, as well as significantly reduce risks.

What will happen if you do not create the proper amount of capital.

Imagine Niagara Falls here it is.

You swim far away and nothing portends trouble, but as soon as you get close to the cliff, you can’t do anything anymore and fall into the abyss.

So it is with the creation of capital. Time passes slowly and does not portend trouble, but by shelving the creation of capital, you are getting closer to the abyss and the closer, the less likely you are to be saved.

Today we have analyzed why a person needs capital and what financial instruments can be used to create it. We came to the conclusion that in order to earn profit and reduce risks, you need to invest not only in Russia, but also abroad.

The unit-linked contract is the best tool for long-term savings with minimal costs, and in this article we will talk about it, in which I will tell you what unit-linked contracts are and how they work.

Friends, in order not to fall into the abyss of the Niagara Falls and to create the necessary amount of capital in a timely manner, I ask you to sign up for a consultation. And in the shortest possible time you will receive a good savings plan.

See you!

Sincerely,
Financial Consultant.

L. D. Revutsky, Ph.D., senior researcher

annotation

The issues of formation of investment capital and investment potential of enterprises from internal (own) and external sources of investment resources for the implementation of highly effective modernization and innovation investment projects are considered.

At the same time, investments are understood as capital investments in objects of economic activity (in particular, in enterprises) with the aim of increasing (building up) it in the future with a positive production and social effect of the long-term economic turnover of this capital.

It is argued that the investment strategy and tactics of the socio-economic development of an enterprise should proceed from strict adherence to the principle of economic activity according to means and opportunities, within the framework of the available investment capital and investment potential, without getting into exorbitant debts, with the full use of all its production, productive and commercial resources.

The task of determining the investment capital (investment resources, investment funds) and the investment potential of an enterprise usually arises when the idea of ​​the need and feasibility of expanding, reconstructing and / or technical re-equipment (modernization and innovation) of such an object appears and is being worked out and a comprehensive technical and economic , financial and social substantiation of relevance, as well as a numerical assessment of the expected performance, efficiency and profitability of the proposed investment project.

The investment capital of an enterprise can be own, borrowed and cumulative, i.e. the sum of the two previous elements. In the view of the author of this article, the total investment capital of an enterprise characterizes its investment potential at the actual level of use of its production, production and marketing opportunities. The units of measurement of the investment capital and investment potential of the enterprise and their elements are thousand rubles. or thousand conventional monetary units (cu).

The value of the investment potential of an enterprise cannot be strictly determined, it is an indicative indicator, since the borrowed investment capital included in it, due to a variety of objective and subjective circumstances, cannot be accurately and unambiguously assessed and can vary over a very wide range.

There are internal and external sources of investment resources (investment capital and investment potential) of the enterprise.

There are only two obvious (traditional) internal sources of these resources - sources of own investment capital for any enterprise: accumulated depreciation and accumulated unallocated, established at the time of calculation, the value of this capital.

The amount of accumulated depreciation and undistributed net profit is fixed from the moment the enterprise passes into the ownership of its last owner, if in the history of this business object there were transitions from one owner to another (from one owner to another). At the same time, historically verified accounting and economic facts of the expenses of a part of the accrued depreciation funds for their intended purpose (current and overhaul, as well as partial renovation of the production fixed assets of the enterprise), and the amount of annually distributed net profit received in the years in question as a result of economic activity are taken into account. this enterprise.

Thus, to determine the actual amount of depreciation deductions accumulated and remaining on the accounting records at the enterprise for the period of calendar time under consideration (the period of operation of the enterprise by the last owner) - Ano, the following expression is used:

Ano \u003d Anp - Apn - Abp, (1)

where Anp - the total amount of depreciation charges at the enterprise for the considered period of calendar time;

Apn - the amount of depreciation charges used at the enterprise for its intended purpose in the considered period of calendar time;

Abp - a part of the free depreciation funds of an enterprise, lent to a business partner (partners) and other friendly enterprises or organizations at their request with guarantees of repayment of this loan at the first request of the lender, if such events took place.

The actual amount of accumulated undistributed net profit of the enterprise for the considered period of calendar time - Pn is determined by the following difference:

Pnch \u003d Poch - Prch, (2)

where Poch - the total amount of undistributed and distributed net profit of the enterprise for the considered period of calendar time;

Prch - the sum of the distributed profit of the enterprise for the considered period of calendar time.

Based on the above considerations, the company's own investment capital, which has accumulated on traditional internal sources of investment resources by the time its value is assessed, X is the sum:

X \u003d Ano + Pnch + Abp. (3)

In this expression, the axiom is taken for granted that, if necessary (in particular, for investment purposes), all existing debts to the enterprise in question must be and will be returned as soon as possible.

In recent years, the management of enterprises quite often uses unused depreciation charges to replenish working capital. From the standpoint of an exemplary accounting policy of the enterprise, such a practice is hardly justified. However, if the reverse process of compensating the amount of accumulated depreciation charges of the enterprise, spent at different times for other purposes, from the resources of its production revolving fund is possible, then such a situation can be considered quite acceptable.

In addition to the traditional internal sources of investment resources of the enterprise mentioned above, as necessary, other possible own sources of such resources can be considered and used to increase its investment capital:

Proceeds from the sale of securities of foreign companies, firms, enterprises and organizations - VTsB, owned by the enterprise in question, if it has these securities;

Proceeds from the lease of free (currently unused) industrial, warehouse and administrative premises, as well as part of the enterprise's land plot - Vap, if such opportunities are available;

Proceeds from the sale of non-core and surplus core assets of the enterprise - Vna, if any;

Initial or additional issue of securities of the enterprise - ETSB, their placement and sale on stock exchanges;

Taking into account these possibilities, the formula for determining the total value of the enterprise's own investment capital - Ikso takes the form:

Xso \u003d Ano + Pnch + Abp + Vtsb + Vap + Vna + Etsb. (4)

It goes without saying that the elements Vpb, Vap, Vna and Etsb included in formula (4) are substituted into it in the form cleared of the due taxes and fees.

All elements of formula (4), starting from the fourth, belong not only to the enterprise's own investment capital, but also to its investment potential.

If an enterprise is part of a corporation (consortium, conglomerate, other forms of association of enterprises), by a special decision of the founders and the Board of Directors of this company, additional investment capital can be allocated for it from the corporate “common pool” of free cash.

In addition, in some specific cases, one of the internal sources of investment resources of an enterprise can be a part of the distributed net profit aimed at replenishing its investment capital in the form of a part of dividends allocated for this purpose by the founders - holders of the largest blocks of ordinary and preferred shares of this enterprise. It all depends on the degree of investment attractiveness, the expected socio-economic efficiency of the project under consideration.

When there are not enough own (internal) investment resources for the implementation of the planned investment project for the modernization and innovation of the enterprise, they resort to searching for external sources of these resources. The main forms of attraction by the enterprise of the amounts of money required for investments from outside:

Taking a loan of an appropriate size in state or commercial banks against the property of the enterprise;

Obtaining a similar loan in the same banks under the guarantees of the government of the country and the state, i.е. without pledge of property of the enterprise;

Obtaining the same loan from the same banks under the guarantee of solvent, wealthy legal entities or individuals, also without collateral of their property;

Borrowing funds from business partners and other enterprises and organizations in contact (in particular, from large financially secure clients) against guarantees of the return of borrowed amounts at the first request of the lender;

Finding and implementing targeted financing opportunities for the planned substantiated investment project for the modernization and innovation of the enterprise in question - FTP through public or private corporations, venture funds, funds for the development and implementation of innovations, etc.;

Variants of public-private partnership in the allocation of the missing investment resources required by the enterprise in question - Irp.

The general formulas for determining the total investment capital of an enterprise - Cicp are as follows:

Sikp \u003d Ixo + Ksz + Zsp

Sikp \u003d Xso + Kbz + Zsp

Sikp \u003d Xso + Ftsp

Sikp \u003d Ixo + Irp,

where Ksz and Kbz - bank loans to the enterprise in question, respectively, with and without collateral of all or part of its property;

Zsp - funds borrowed by the enterprise in question from business partners or from other enterprises and organizations in one way or another connected with it under the guarantee of repayment of the debts taken on demand.

There are other ways to attract investment resources from external sources by an enterprise. For example, requesting and receiving advances from some of our customers as part of the advance payment for future deliveries of products, work and / or services in the near future. A significant increase in the investment capital and investment potential of an enterprise can be achieved by issuing, placing and selling on the stock market the packages of its preferred shares corresponding in size.

Legal, financial and economic relations between enterprises-pledgers and banks-mortgagors are thoroughly considered in the publication [1]. In the same book, methods for determining the collateral value of collateral objects are described in detail.

The size of the loan requested by the enterprise from the bank on security, of course, depends on the fair market value of the pledged property and the degree of its liquidity. The more expensive the object of collateral is and the higher its liquidity, the larger the bank loan can be obtained.

Typically, the objects of collateral for obtaining relatively small bank loans by an enterprise are its machinery, equipment, vehicles and self-propelled mechanisms. In order to obtain larger loans, enterprises can mortgage, first of all, warehouse and office buildings, other objects of their own real estate, as well as their land plots with improvements and encumbrances, if they own them.

The value of the collateral value of the pledged object - Сз, as a rule, is determined by the corresponding product of two cost-forming indicators:

Cz \u003d Cp x Kzd, (6)

where Ср is the fair property pledged by the enterprise, thousand c.u.;

Kzd - collateral discount, showing how much the value of the pledged property Cp will differ at the time of its assessment and the collateral value Cp established by the bank for a particular credit transaction.

The margin discount Kzd is determined by the ratio [ 1 ]:

Kzd \u003d 1 - Sz / Avg. (7)

The scatter range of Kzd values, judging by the mentioned book, is 20 - 60%.

The same publication provides a more differentiated gradation of collateral discount values, depending on the degree of liquidity, characterized by the approximate period for the sale of the collateral object in calendar months. Such a gradation is shown in Table 1.

Table 1.

Degree of liquidity	High	above average	Medium	below average	Low
Approximate term for the sale of the collateral object, months			over 2 to 4	over 4 to 6
Collateral discount amount,%			over 30 to 40	over 40 to 50	from 50 and above

In cases where the enterprise itself with or without a land plot is used as a pledge object, the value of its fair market value Cp is proposed to be determined by the normative-income (resource) method according to the refined formula given in article [2], adjusted taking into account the conditions of a particular such pledge agreements.

At the beginning of the article, the concept of the investment potential of an enterprise is given at the actually achieved level of its production and commercial use and development. Of much greater interest to the owners, top management and investment and financial analysts of the enterprise is the assessment of its investment potential with the standard full production load of the existing capacities for the production of both core and secondary (related) products, as well as for the implementation of the relevant scope of work and the provision of the envisaged services. Methods for determining the production and productive potential of an enterprise are presented in the most detailed way in the monograph [3]. The normative amounts of accumulated depreciation charges - Ann and accumulated retained net profit - Pon at the enterprise are determined respectively by formulas (1) and (2), in which indicators Ann and Pon are substituted for the indicators Anp and Poch. At the same time, the indicators of the total standard amount of depreciation deductions and the total standard amount of the enterprise's net profit for the considered period of calendar time are calculated according to the corresponding indicators of its productive potential. As a rule, the values ​​of the indicators Ann and Pon will almost always be much higher than the values ​​of the indicators Anp and Poch, i.e. the investment potential of an enterprise with the normative full use of its production, production and marketing (commercial) potential will always be higher than the investment potential of this business object, calculated for the actual level of its production and commercial load.

If the estimated or estimated cost of an investment project for the modernization and innovation of an enterprise significantly exceeds its investment potential, then the owners and top management of this economic facility, as a rule, have to make one of the three most effective and prudent management decisions possible in such cases:

Postpone the implementation of the investment project under consideration until better times, when it is expected that the required financial resources will be found;

Implement only the most cost-effective autonomous parts (stages) of the developed investment project, if it lends itself to an appropriate division and taking into account the total amount of investment capital formed at the enterprise;

Once and for all, refuse to implement this investment project as financially unsustainable.

The strategy and tactics of the economic activity of enterprises should always be built on the principle of “live and develop according to your means and opportunities” within the framework of the available investment capital and investment potential, without getting into unsustainable debts. This principle certainly applies to investment projects for the development of enterprises, the economic efficiency of which has been convincingly proven. The implementation of investment projects for the modernization and innovation of enterprises brings the greatest economic effect in cases where their production, productive and social capabilities are used in full force as a result of the implementation of these projects.

The greatest success in economic life is usually achieved at those enterprises whose owners and managers do not make mistakes when choosing, justifying the expediency and timeliness of the implementation of planned investment projects, and the danger (probability) of such mistakes is high for many reasons. It is difficult for an enterprise to earn and/or borrow investment capital, it is easy to spend, and it is problematic, difficult, and sometimes impossible to achieve a timely return of the funds spent with expected profit.

Having practically completed the preparation of this article, the author considered it expedient to get acquainted with the contents of the book “Investment capital of an enterprise” [4] in the hope of finding something in it that would improve the thoroughness and quality of coverage of the issue raised in the article. Unfortunately, the hope was not justified. In addition to the feeling of confused eclecticism, "porridge" and "noodles on the eyes" nothing remained in my head. Just a lot and actually nothing in essence. The surprising discrepancy between the title of the book and its main content. The text does not even have a clear definition of the concept of what is called the investment capital of an enterprise.

Literature

1. Fedotova M.A., Roslov V.Yu., Shcherbakova O.N., Myshanov A.I. Valuation for collateral purposes: theory, practice, recommendations for bank specialists, appraisers, analysts. - M.: "Finance and statistics", 2008. 384 p.
2. Revutsky L.D. A refined formula for determining the economically fair market value of enterprises. - M.: // "Questions of assessment", No. 4, 2009. P. 38 - 42.
3. Revutsky L.D. Production capacity, productivity and economic activity of the enterprise. Evaluation, management accounting and control. - M.: "Perspective", 2002. 240 p.
4. Gukova A.V., Egorov A.Yu. The investment capital of the enterprise. Under the general editorship of A.Yu. Egorova. - M.: "Knorus", 2006. 276 p.

What is investment capital?

The concept of investment has several meanings. The most general definition can be considered the definition of investment as the use of money for the purpose of generating income or increasing capital. All types of property and intellectual values ​​that are invested in objects of entrepreneurial and other activities for the purpose of making a profit or achieving a social effect are investments.

Already from this definition it is clear that we are talking not just about money, but about money, which is the monetary form of the circulation of capital, that is, investment capital. Investment capital can be own (retained earnings, depreciation) and borrowed, the source of which is temporarily free other people's money. But free cash is not an investment. They turn into investments in the hands of those who spend them on the purchase of elements of production that generates income, that is, turns them into real assets.

Real assets are the economic resources of the company: fixed and working capital, intangible assets used for production activities in order to generate income. Own savings, turning into real assets, directly turn into investments. Foreign free money (savings) is converted into investments through the capital market, primarily through the stock market.

The objects of investment can be real investment projects, real estate and a variety of financial instruments.

Financial instruments, as investment objects, are various types of financial obligations:

• bank deposits;
• Securities (bonds, stocks, options, etc.).

Therefore, the concept of investment is used to refer to:

• investing money, intellectual values, in real assets, that is, in production;
• investment of funds in financial instruments, that is, the purchase of securities.

The ratio of own and borrowed sources of investment financing is called financial leverage.

The main area of ​​capital investment is the oil business, which is characterized by the least need for innovation. British companies are actively cooperating with the Russian government as oil and gas suppliers to the domestic market. The main contribution of these companies Ї investments in field infrastructure; in oil production, their role in the all-Russian volume is minimal.

Investment capital (long-term and short-term financial investments) Profitability of investment activity

The general formula of relations arising in the investment capital market can be expressed as follows: an investor makes investments in the form of money, goods and property rights, hoping to receive income from investments after some time. At the time of realization of investments (sales of investment capital) on the market, investments are opposed by a set of investment goods or objects of investment.

The circulation of investments in the field of reproduction of physical capital (movable and immovable property) can be described as follows. Investments are made in investment goods to create the material prerequisites for commercial activity. Investment capital in various forms is advanced into specific types of goods, collectively representing physical capital. Investment in cash can be invested in any element of physical capital. Investments in commodity form, invested in commercial activities, are directly transformed into material elements of capital. Investments in the form of property rights are realized in the process of reproduction as the use of experience, know-how and other intellectual values.

Much has been written and said about the unification of the financial and monetary systems of Europe now and in the coming decades. While more and more multinational corporations are entering the Russian market, the harmonization of accounting systems will be a key factor in successfully attracting foreign and domestic investment to the economy. Factors that will influence the development of accounting and reporting systems include the development of the legislative and tax systems, attracting investment capital and improving the skills of accounting specialists.

The amount of investment capital is determined according to the balance sheet as the sum of own funds and long-term liabilities

To take into account investment capital in the profitability of an enterprise, one can resort to decomposing the rate of return into a profitability ratio and capital turnover Ok

Profitability - the ability to earn a profit sufficient for current activities, as well as attracting and retaining investment capital.

Economic crime hinders the development of production, diverts investment capital, spurs inflation, deprives the state budget of a significant part of revenues, exacerbates all existing economic problems.

Obtaining financing in exchange for shares is much more difficult than obtaining debt capital. Small, new, young or fast-growing firms face many more problems with equity financing than large, mature or listed companies. European companies, moreover, often suffer from a lack of share capital, which reduces their ability to withstand emerging difficulties and raise additional funds. Investments in shares of private enterprises are accompanied by greater risk and the threat of illiquidity than in the financing of large or even more so public companies. This gap puts small growth firms at a permanent disadvantage in attracting long-term investment capital. Therefore, the government's response to high risk/reward ratios should be lower taxes on income, higher allowable write-offs for losses, and tax exemptions on the amount of (re)investment in shares of private companies. These simple steps will have an invigorating effect, encouraging start-ups and stimulating investment in start-up, young or growing companies, as opposed to more "safe" but less potentially profitable ones with less opportunity to create new jobs.

The investment capital must be divided into two parts. One part must be invested, i.e. with this money, shares of stable companies with good dividends should be bought, which should be stored for months and years, not paying attention to market fluctuations. The second part of your money invested in the market can be used for trading. You must determine the ratio between the parts yourself. Trading on the exchange involves a lot of risk, and at first you can lose a significant amount. In addition, frequent buying and selling requires constant market analysis. How will you deal with possible losses Do you have enough time and patience to methodically monitor the market and search for companies to trade Are you too gambler to start this game at all These are very serious questions everyone should answer on their own.

Another important way to increase the growth rate is diversification, i.e. division of investment capital between the shares of several companies. How the Growth Rate is Calculated in This Case Let's say that you bought shares in n companies, dividing your capital equally between them. After selling these shares, you again divide the money from the sale equally and buy shares in other n companies. Let's assume that your goals are identical each time, the values ​​of s and I do not depend on the choice of companies, and all the shares you buy behave independently. Without considering the corresponding calculations, we immediately write the final approximate formula. If we divide the capital into n parts, then

As already noted, the same model also describes the distribution of the choice of stocks by exchange players of different qualifications. Beginners are more likely to pick bad stocks and their only way to save their investment capital is to place very tight stops. More experienced players who pick stocks with a higher probability of going up can afford to place stops further back.

Let's analyze one of the possible options for such a search. You can start your analysis by identifying companies in the S P-500 that have seen higher dividend payouts in recent years. At the beginning of October 1995, there were 43 companies with dividends exceeding 2%, and the average annual dividend growth over the past five years has exceeded 10%. If you were to build a portfolio of the shares of all these companies, investing the same amount of money in each, then in a year - as you can see from the changes in stock prices - your investment capital would increase by 20.1%, not counting the profit received from the payment of dividends. The S P-500 Index has risen 18% over this period. Thus, even without deep analysis, using only the criterion of dividend growth, it would be possible to surpass the market growth by 2%, which, as we have already said, is currently measured by the behavior of the S P-500 index as a whole.

Divide your investment capital into 5 equal parts,

The companies included in the Dow Jones Index are giants of the American industry, leaders in their respective industries, which account for 20% of US investment capital. The US economy is developing, the income of these companies is growing on average, and the prices of their shares are growing accordingly.

Such an investment can give very large profits, but in accordance with the main law of the exchange game mentioned more than once, the risk from it is also very high. In addition, a serious approach to investing in small companies requires a lot of time. Therefore, if you are not risk averse and do not have a lot of free time, you can safely skip this section, limiting yourself to the information from the last section of the previous chapter. If you do decide to take part in such a treasure hunt, then the following description, specifying the information in section 7.6, will help you make the right decisions regarding small company stocks. Once again, we remind you that only a small part of your investment capital can be invested in such companies.

Will the least risky investment strategy suit you when your investment capital is placed in the behemoths of the market - in companies with a share value of more than one billion dollars. The risk is minimal, but the average return on investment is only about 10% per year. The author prefers the option of investing in companies that are market leaders and pay the maximum dividends in relation to the share price. At the same time, the profit is almost 1.5 times greater, and the risk grows very slightly. All companies in the Dow Jones Industrial Average are market leaders, and the investment strategy described in section 8.1 is not only profitable for them, but also quite safe.

Unexpected surprise. In the morning, when you go to your computer, you suddenly see that your shares have fallen by more than 15% and continue to fall further rapidly. After reviewing the news, you discover that a number of leading brokerage firms have downgraded your company. You are very upset and in a state of complete stupefaction watching your investment capital melt away every minute. You are of course hoping that the decline will stop and you will sell the stock for a not so big loss.

© I.D. Anikina, 2009

FINANCE. ACCOUNTING. AUDIT

UDC 330.14.01 BBK 65.263

FINANCIAL AND INVESTMENT CAPITAL: GENERAL AND SPECIAL

I.D. Anikina

The features of financial and investment capital that influence the formation of the company's investment strategy are identified and considered.

Keywords: financial capital, investment capital, investment strategy, capital mobility, pricing factors, assessment of the future situation, consideration of subjective pricing factors.

The growth dynamics of the Russian economy is largely determined by the dynamics of investment processes and the structure of investments. Investments in real assets form the basis of economic growth; however, investments in financial assets are also one of the necessary conditions for the transformation of economic relations in Russia. Stabilization of the country's economic growth largely depends on the speed of processing information about investor preferences and project risks (such information is carried by changes in prices for financial assets in the stock markets) and on the possibility of assessing and redistributing not only project risks, but also macroeconomic risks.

In economic theory, the concepts of investment and capital are sometimes distinguished, the main purpose of which is to generate income, while the goals of investment are interpreted more

broadly, which can be an increase in the investor's utility that is not measured in valuation. For example, in the Soviet economy, “the main motive for investment was not profit, the receipt of which was an important, but still secondary goal. The main meaning of investments was seen in the expansion of production, its modernization and the creation of new jobs, regardless of the effectiveness of such investments.

According to modern researchers, “without the formation of an adequate public attitude to the basic element of a market economy - capital, in relation to which all the rest are derivatives, the formation of market relations ... in Russia has no prospects, and capital management of economic entities will be erroneously ... concentrated on own sources of funding.

According to the method of obtaining income, capital can be differentiated as investment and financial. Investment capital increases its value as a result of "acquisition of new capacities or expansion

rheniya existing”, that is, as a result of the investment of the financial capital of the company (own and mobilized from external sources of funds) in real investment projects in order to maximize the value of the company. Investment capital is the resources involved in investment activities for their renewal (not necessarily in the same material form) and income in the future. Financial capital can be defined as an incremental form of the value of investments in the process of relatively independent movement of financial resources by ensuring the reproduction process, that is, not only expansion or renewal, but also the functioning of the invested investment capital. “From a general economic standpoint, capital is a set of financial resources transformed in the process of business turnover of economic entities into tangible, intangible and financial assets” . Proceeding from this, the following system of signs is inherent in financial capital: 1) the totality of financial resources; 2) the movement of financial resources, which is carried out relatively independently of the movement of real assets, but financial capital creates conditions for the accelerated functioning of investment capital.

Financial and investment capital are in close interaction with each other: the effectiveness of the functioning of the investment capital of an enterprise is largely determined by the efficiency of its formation, and the effectiveness of the functioning of financial capital is determined by the effectiveness of its participation in investment capital, which is reflected in the formation of the company's investment strategy. The investment strategy of the company includes the stage of formation of financial resources. The main task of this stage is to attract financial resources with specified parameters (time of obtaining resources, volume, costs of attraction, terms) for the implementation of investment projects. The purpose of the investment strategy is the choice of directions for investing financial capital in order to generate income in the future. Thus, investment

This strategy includes the stages of formation of financial resources and distribution between the investment projects of the company. The well-known scientist L. Krushwitz considers investments and financing as “payment-oriented processes” and gives them the following definitions: “investment is an entrepreneurial action that at different times t leads to cash payments and receipts, and this process always begins with a payment . Financing is an action that leads at different times t to cash receipts and payments, and this process always begins with receipts. Thus, an investment action for one investor is at the same time a financial action for another.

Financial and investment capital are distinguished by the following features.

1. Isolation of investment and financial forms of capital. The existence of financial capital is based on investment capital, but financial investments cannot be put in line with any real asset. Financial capital has a certain independence in relation to investment capital. The independent movement of financial capital can be separated from the movement of real assets, which leads to a financial crisis, to gaps in the value of investment capital and the underlying financial capital. With the development of precisely finance capital, every capital "seems to be doubled, and in some cases even tripled, as a result of the different ways in which the same capital, or even the same debt claim, appears under different forms in different hands." Due to their properties, the value of securities does not coincide with the value of real capital, although it depends on its change. K. Marx believed that a change in the value of securities does not lead to a change in the wealth of the nation, which is embodied only in real capital [ibid, p. 515-517].

Indeed, the dynamics of the value of shares does not always coincide with the dynamics of the value of real capital, which reflects the characteristics of financial capital: assessing the financial

soviet capital, tangible assets must be analyzed not just as the sum of individual elements, but as a whole, as a system in which all elements are interconnected and interdependent. Securities reflect the value of not only tangible assets, but also goodwill, in which the quality of management, the quality of labor resources and the optimal combination of tangible and intangible assets play an important role. In the short term, fluctuations in the value of financial assets may not reflect an increase in the country's wealth, as they occur under the influence of not only economic, but also speculative factors, the psychology of investors, which have an important impact in the short term. In the long run, the growth of financial assets determines the growth of the wealth of the country, and the prevalence of financial investments is a measure of the development of the economy as a whole.

2. The difference in the mobility of financial and investment capital. Financial capital has maximum mobility compared to investment capital, but at the same time, different parts of investment capital also have unequal mobility. The most mobile are the human and information components of capital, the least are technical and natural, the latter also have a greater specificity in terms of types of production compared to human resources, which makes it difficult to change the direction of their use, and consequently, change the investment strategy.

Differences in mobility stem from the heterogeneity of investment capital: in its composition, it has specificity - complexity, difficulty or impossibility of switching the use of this asset from one type to another. Specificity leads to the emergence of sunk costs, since it is either impossible to “switch” this asset to the production of other goods, or it requires additional costs. This makes it difficult for capital to flow quickly from one industry to another, unlike financial markets and the possibilities of financial capital. Russian scientist Yu.V. Yaremenko supplemented and developed the theory

resource specificity and proposed the theory of resource heterogeneity. The essence of this theory is that resources can be ranked according to their quality: at one end there will be resources of high quality (quality), at the other - the same resources of low quality (mass). The development of technologies changes the composition of resources - high-quality resources turn into mass ones, which requires time and resources. This theory is being developed by modern scientists who study models of economic dynamics and take into account the need for heterogeneity of capital for the functioning of the economic system.

This implies the importance of the choice of investment strategy by companies: making decisions on certain real investments is a critical decision, since in the future the rejection of such investments, the transition to another technology requires significant costs. Investments qualitatively change the structure of the economy, the choice of one or another investment option brings the system to a new state, irreversible to the previous one.

The heterogeneity of resources affects the choice of investment strategies by enterprises. The heterogeneous nature of resources leads to conclusions about the different access of various participants in the market process to quality resources. Only companies that generate stable cash flows get access to high-quality resources (labor, technology, etc.). In the conditions of instability of the market economy, companies can maintain the stability of cash flows largely due to the monopoly production of products, which is why the protection of intellectual property, the desire of companies for growth, and the creation of transnational corporations are so important in modern conditions.

Differences in the mobility of financial and investment capital lead to differences in the duration of changes in the structure of the financial market and the structure of the national economy. The structure of the financial market (the ratio of the volumes of various securities circulating in the financial markets) can change much faster than the structure of the national economy, since the transformation of the investment structure within

the national economy requires significant investment and a long investment period. However, the development of modern information technologies partially alleviates this contradiction, investments can be attracted through financial markets, the development and implementation of new technologies are much faster than traditional ones, having a significant impact on the structure of the entire economy.

In the modern economy, changes in real assets are taking place: these are not only and not so much industrial buildings, structures, machinery and equipment, but also intellectual property, know-how, as well as modern information technologies, which are characterized by high volatility in value, which brings them closer to financial assets . Information technologies are characterized by a high rate of development, implementation and obsolescence, which makes it possible to attract speculative capital as a source of financing for such technologies, which in this case will be a “normal” source of financing. Information technologies, due to the high speed of development, “turn out to be the only type of technology in relation to which “short” speculative capital can turn out to be normal productive. The time for their renewal is so short, and the cycle of life is so compressed that it corresponds to the velocity of circulation even of finance capital.

3. The difference between pricing factors for financial and real assets underlying them. Prices for real assets, to a greater extent than for financial assets, may deviate from market prices. This is due to the existence of non-competitive (monopoly, oligopoly) markets, the prices of which can be influenced by individual companies or the state. TNCs, using the transfer pricing mechanism, also have a significant impact on prices, which can differ significantly and almost arbitrarily from market prices established on the basis of traditional market mechanisms - in case of similar sales between unrelated firms [ibid., p. 359].

Financial markets are among the most competitive in the world, they are characterized by a significant number of sellers and buyers, none of which can control the pricing of financial assets. Market prices for financial assets may differ from fair prices, but this is due not so much to the influence of individual counterparties on the pricing process (most often this influence is of a short-term nature), but to the peculiarities of the institutional structures of the stock market (oligopolistic market structure, high financial risks, low market turnover). , the existence of several trading structures with different infrastructure, imbalances in supply and demand in the stock market, unequal access to information of various market participants).

4. The need to assess the future situation, which is characterized by uncertainty and a high degree of risk when making a decision at the current time, which leads to the impossibility of making an accurate forecast of changes in the value of financial and investment capital.

Changes in the prices of financial assets occur more sharply and more quickly than for real assets, and their volatility grows not only under the influence of changes in fundamental factors, but also under the influence of speculative sentiment and investor psychology. Many experts believe that the efficient market hypothesis cannot explain speculative booms and sharp declines in the stock market and is a convenient starting point for describing the evolution of market prices only in normal times.

Studies show that a variety of investments, both real and financial, became objects of speculation and sharp price changes. These are gold (New World, 1550s, 1978-1982), real estate (canals, rich houses, Holland, 16361640), public lands in Chicago (18301842), mortgage investment trusts, offices and malls (Japan, Sweden, 1980s), mortgage bonds, real estate (USA, England, 2008), banks (Argentina 1980-1998, Chile, 1981, Japan, USA, 1980-1992, 2007-2008 Mexico, 1994, Indo-

nesia, republic of korea, malaysia, thailand 1997-1998), US dollar (1985), US FDI (1980s), junk bonds (US 1989-1990), Japanese equities , (1980s), securities of companies from leading countries of the world (2008) . Thus, changes in the prices of investment resources lead to an unavoidable risk in making investment decisions for both investments in financial capital and investment capital. But financial capital is more dependent on fluctuations in the general economic situation, on political stability, on the balance of supply and demand in financial markets, that is, on macroeconomic dynamics: "financial capital creates institutions of the global investment monetary system, the content of which coincides with the system of structural levels of macroeconomics" .

The main regulator of the balance of the financial market is the interest rate, which reflects the supply and demand for financial capital. The level of the interest rate should reflect the actual opposition of all loan and real capital in a free competitive environment. Under this condition, the interest rate is formed on the basis of the time preferences of individuals. If preferences change and preferences of the present over the future decrease, then individuals' savings increase, the interest rate falls and stimulates investment in long-term capital goods, economic growth occurs.

If the interest rate falls due to the government's "easy money" policy, then price signals are distorted, investors invest in too expensive and long-term projects that previously looked inefficient. The prices of capital goods are rising, the real estate market and the stock market are rising. But individuals' time preferences haven't changed, and they continue to spend more rather than save. There is a crisis in the production of capital goods.

Thus, the policy of the government, if it does not take into account real changes

investor preferences, distorts price signals, misleads the investor, and leads to erroneous investments. There is an increase in the real estate stock market, speculation increases, stock prices rise, but do not reflect the real preferences of individuals to save savings, as well as real incomes and returns on shares. There is a discrepancy between the existing market prices for shares and the fundamental value of shares. Even if real, physical capital does not disappear anywhere, it loses its value both under the influence of real changes in investor preferences, and under the influence of changes in the policy of the central bank, and other factors, that is, capital ceases to be capital as a self-increasing value. Falling share prices have a negative impact on real capital as well. It leads to a decrease in the investment opportunities of the enterprise, since the investment attractiveness of a new issue of shares decreases and the financial instability of the enterprise (financial risk) increases, which leads to an increase in interest rates on borrowed capital. The fall also has a negative impact on the purchasing power of the population, especially in countries where the share of the population owning shares is large. When the stock market rises, additional opportunities are created for companies to raise capital, both by issuing shares and by raising debt capital at favorable interest rates. The development of financial markets contributes to the growth of investment and the rise of real production, other things being equal.

In modern economic science, the prevailing opinion is that it is impossible to make an accurate forecast, even with all the completeness of information: “The more distant and complex in its foundations the phenomenon that needs to be predicted, the more caution must be shown. Predictions can only be conditional. Intellectual honesty requires that we accompany even these cautious statements with a caveat: they are made with a greater degree of ignorance. Representatives of the Austrian school are convinced that

the torture of making a forecast at least a year ahead is a waste of work, "given the complexity of the economy and the subjective assessments used that operate in the minds of people" .

5. Accounting for subjective and psychological factors in determining the value of financial assets. The modern market economy develops not only under the influence of economic, but also non-economic factors, and the importance of the latter increases as the complexity of economic development increases. The effect of non-economic factors is especially pronounced in the stock market, where the actions of investors are determined not only by rationality. “Investors are prone to herd instinct,” notes B.B. Rubtsov. When stock prices change, investors' unidirectional actions reinforce themselves (the autoresonance effect). This happens both when stock prices rise and fall. Even after the fundamentals kick in, "the time it takes for a trend to change is often determined by people's psychology: when people feel the change."

There is a contradiction between the speed of dissemination of information and the speed of its comprehension (it is much less than the first). This is one of the reasons why in the short term the price of financial assets depends not only on the rational expectations of investors, but also on psychological factors (moods, instinctive and subconscious reactions of market participants). Thus, if short-term speculative investors predominate among market participants, then the market price of financial assets will differ significantly from the fair one. This can lead to the emergence of "soap bubbles", manias and crises.

The share price reflects not only the objective performance indicators of enterprises, but also the emerging preferences of investors. In turn, the future expectations of investors affect the current choice of real investment projects that determine stock prices, that is, not only real management decisions affect the exchange rate.

shares, but the share price also influences the choice of management decisions. Under these conditions, an expert analyst, determining the areas of the most profitable investments, influences the formation of securities quotes; subjective opinions and assessments affect reality. This is especially important in low-liquid markets, markets with a small number of sellers and buyers, in these conditions, the expert's opinion is of particular importance. His professionalism, observance of generally accepted ethical and moral norms will determine the prospects for the development of the market and the economy. The development of the stock market, the use of new financial instruments depends on the level of financial literacy of the investor. The investor is forced to turn to intermediaries who are ready to share the risk with him and help him increase his capital. This situation requires the creation of an appropriate infrastructure, including an institutional one, to help the stock market function normally.

Specialists and analysts who shape investor preferences have a significant impact on financial and investment decisions. But, like all subjects, in their actions they are guided not only by the interests of investors, but also by their own, their opinion is based not only on objective, but also on subjective data. Making investment decisions on this basis may lead to a deviation of fair asset prices from market ones.

6. Discrepancy between needs and opportunities for financing investment strategies. In the absence or lack of their own financial resources, enterprises need financial resources to reproduce their investment capital. On the other hand, the subjects of the financial market have free cash in the absence or limited opportunities to invest in real production. The financial system contributes to the resolution of this contradiction. However, in modern conditions there is a frequent discrepancy between the requirements for the necessary financial resources imposed by enterprises to finance investment strategies (long-term, significant

volume, certain terms for receiving cash flows, risk) and financial resources available from banks and other financial institutions, private investors.

To solve this problem, financial innovations arise that make it possible to convert cash flows with some parameters (risk, time, frequency of receipt, currency, interest rates, etc.) into others that satisfy financial market participants.

Thus, financial and investment capitals, being interconnected and interdependent, have features that lead to their relatively isolated development and multidirectional movement at certain points in time; discrepancy between the cost of financial resources and investment resources underlying them; crises covering both the financial system and the real sector of the economy. At the same time, the development of financial capital is a necessary element in stimulating investment activity in the real sector of the economy, leading to an increase in innovation, an increase in the quality of life of the entire population, and an increase in the welfare of the country's citizens.

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FINANCIAL AND INVESTMENT CAPITAL: GENERAL AND SPECIFIC

This paper examines financial and investment capital peculiarities which determine the investment strategies of the company.

Key words: financial capital, investment capital, investment strategy, capital flows, price development aspects.