Nature And Introduction Of Investment Decisions

An efficient allocation of capital is the most important finance function in the modern items. It involves decisions to commit the firms funds to the long term assets. Capital budgeting or investment decisions are of considerable importance to the firm since they tend to determine its value by influencing its growth, profitability and risk.
The investment decisions of a firm are generally known as the capital budgeting, or capital expenditure decisions. A capital budgeting decision may be define as the firms decisions to invest its current funds most efficiently in the long term assets in anticipation of an expected flow of benefits over a series of years.

The long term assets are those that affect the firms operations beyond the one year period. The firms investment decisions would generally include expansion, acquisition, modernization and replacement of the long term asset. Sale of division or business is also as an investment decision. Decisions like the change in the methods of sales distribution, or an advertisement campaign or a research and development programmed have long term implications for the firms expenditures and benefits, and therefore, they should also be evaluated as investment decisions.

It is important to note that investment in the long term assets invariably requires large funds to be tied up in the current assets such as inventories and receivables. As such, investment in fixed and current assets is one single activity.

The following are the features of investment decisions,
The exchange of current funds for future benefits.
The funds are invested in long term assets.
The future benefits will occur to the firm over a series of years.
Importance of Investment Decisions
Investment decisions require special attention because of the following reasons:
They influence the firms growth in the long run
They affect the risk of the firm
They involve commitment of large amount of funds
They are irreversible, or reversible at substantial loss
They are among the most difficult decisions to make

Growth

The effects of investment decisions extend into the future and have to be endured for a longer period than the consequences of the current operating expenditure. A firms decision to invest in long term assets has decisive influence on the rate and direction of its growth. A wrong decision can prove disastrous for the continued survival of the firm; unwanted or unprofitable expansion of assets will result in heavy operating costs to the firm. On the other hand inadequate investment in assets would make it difficult for the firm to compete successfully and maintain its market share.

Risk

A long-term commitment of funds may also change the risk complexity of the firm. If the adoption of an investment increases average gain but causes frequent fluctuations in its earnings, the firm will become more risky. Thus, investment decisions shape the basic character of a firm.

Funding

Investment decisions generally involve large amount of funds, which make it imperative for the firm to plan its investment programmers very carefully and make an advance arrangement for procuring finances internally or externally.

Irreversibility

Most Investment decisions are irreversible. It is difficult to find a market for such capital items once they have been acquired. The firm will incur heavy losses if such assets are scrapped.

Complexity

Investment decisions are among the firms most difficult decisions. They are an assessment of future events, which are difficult to predict. It is really a complex problem to correctly estimate the future cash flows of an investment. Economic, political, social and technological forces cause the uncertainty in cash flow estimation.

Signed Football Shirts For Soccer Fans As An Investment

Perhaps you may have noticed recently that the stock market has crashed. Sure it’s sad for the people who invested so heavily in it but perhaps behind it all there are a few expensive lessons to be learned. The first lesson is that the stock market is a great place to invest your money when its hot but should it turn cold, the stock market giveth and the stock market taketh away.

Truly Beautiful Investments to Hold in Your hand

Whats really crazy is the stories that are coming out on the news about people who are committing suicide because they have lost their millions. Is that really what investing is all about or can there be more to life than that? What about investments that you can hold in your hand and truly appreciate whether they go up or down in value.

Always Valuable to Soccer Fans

This is where the signed football shirt truly shines as an investment opportunity for todays soccer fan. A truly special football shirt that a favorite soccer star has actually held in his hand and put his name on. Of course these types of signed football shirts can be bought on a speculative basis but can they ever completely lose their value in the way that so many other investment commodities have recently?

Not Worth Dying Over

Of course not! And that is what makes them such an excellent investment. Do you think those guys would have killed themselves if they were loyal soccer fans that had invested their millions in signed soccer shirts? Hell no! Because for one thing they can never lose their value the way that stocks have and besides, regardless of which way they go in value, they will always be a genuine signed soccer shirt!

Well Worth the Sacrifice

OK. So now you are ready to sell your home and move into a cardboard box, so you can invest your entire net worth in signed soccer shirts and live under a bridge. Thats a wise choice, because for one thing it shows that as a true soccer fan you really do have your priorities in order. The wife and kids can go and move in with her mother. She’ll understand.

Using Prayer as an Investment Tool?!?

However before you begin making your purchases there are a few things that you will need to know. Of course the golden rule about not making emotional investments goes right out the window here, because after all, it is soccer your dealing with. However; with any type of sports memorabilia the idea if you plan on making money is to pick a rising star in his rookie year and pray like hell he doesn’t get injured.

Don’t Get Scammed

However; there is one other golden rule that you will definitely want to invest in signed soccer shirts by. That is that you should only buy a signed soccer shirt from a reputable website. Scouting around the Internet for screaming deals, more often not is only going to leave you holding a counterfeit. For investment purposes, the only option that you should consider is signed football shirts from credible online sources that come with a certificate of authenticity.

How to Start Saving for the Future With Long Term Investment Vehicles

In an uncertain economic climate, keeping your finances in good shape can be a difficult task. If you have long term goals, or simply think it’s a good idea to be prepared for unexpected financial burdens, a savings or investment plan makes a lot of sense.

Saving for the future means you’ll be in a position to help your children through higher education, or insure that you retire comfortably in your old age. Whether you’ve gained experience or are new to navigating the savings and investment market, a solid, long term financial strategy gives you both options and peace of mind.

What do I need to know?

You have a range of options when it comes to choosing an investment or savings product. The approach you select should reflect your needs and long term goals and it’s a good idea to familiarize yourself with the different accounts or ‘wrappers’ financial organisations offer:

ISAs – Individual Savings Accounts offer a high-rate of interest with the added incentive of tax exemption on the money you accumulate. Be aware that there is a limit on the amount you can contribute to an ISA per year. ISAs are available in both ‘cash’ and ‘stocks and shares’ categories.

Investment bonds – a lump sum is invested in a range of funds and assets with the intention of making the highest capital gain. While this option carries increased risk, significant tax incentives are available.

Pension and retirement plans – it’s never too early to start thinking about putting money away for your retirement and tax relief on the many pension products available make this type of saving an attractive option. Keep in mind, money put into a pension scheme will not be accessible until you reach a certain pre-determined age.

Offshore investment – although a legally complex area, moving money into an offshore account may bring significant returns. While your money may grow in an offshore account, you’ll be required to pay tax on any gains should you decide to move the money back home.

What are the risks?

Choosing to save or invest depends a lot on the extent to which you want to risk your money. If you have a clear idea of an amount of money you wish to accumulate over a certain period of time, an ISA or similar savings plan could be the better option. While the amount you stand to gain may not be as much as an investment strategy, your cash will be protected against the dangers of the stock market.

On the other hand, if you feel you have the time and money to risk in an investment, the stock market can deliver the returns you’re looking for. If you don’t have the experience to devise an investment strategy on your own, finding a financial advisor to help you through your decisions is a very good idea. Financial advisors will be able to select an appropriate investment plan for your personal needs and provide information and advice at every stage.

What Is The Role Of Investment Advisors

Gone are the days when people were content to invest in safe bank deposits and treasury bonds. With increased interest in investing in stock exchange shares, ETFs (Exchange Traded Funds), mutual funds and other types of financial investment instruments, an average investor is faced with a host of choices. Investment decisions can be confusing for an unseasoned investor. An investment advisor can help an individual to make informed investment decisions. By properly following the recommendations of the advisor an individual can secure optimal returns and capital appreciation over his or her savings.

Investment advisers are firms or individuals who give investment advice on personal or institutional finances. The advice can be in the form of choosing the best stocks for an investor to go long or short on, implementing strategies on when to go long, short or hold, suggesting on how to diversify the existing portfolio etc. These advisers are also well equipped to give recommendations on foreign investments.

There are two types of investment advisers – registered and unregistered. US investment advisers require to be registered with the Securities and Exchange Commission (SEC). They can even be registered with regulatory authorities in local states. Investment advisers offer fee based services. This specific industry is strictly regulated and covered by provisions in US law.

Role of Investment Advisors

Investments in securities Advisers must give an investment scheme to clients before trading in securities. A good advisor informs the client on the best available choices to assemble in a stock portfolio. suggestion to hold on to shares or to exit the stock can also be given depending on the prevailing market conditions. Consultancy services like this are given to retail investors, individuals and even entities such as the mutual fund houses.

Putting the best interest of the client first US Investment advisers have a fiduciary accountability. This means that they are required to put the interests of their clients above their own interests and make absolute that the client gets the supreme investment suggestion. It also means that if instances of conflict of interest in the case of advisers are shown, then the client can take legal action against the individual or the firm.

Safeguard clients assets and maintain records An investment advisor is also accountable for maintaining records of all the client transactions. In such cases, the client needs to acquire a consolidated statement every three months. This statement shows the status of the assets as well as what transactions have taken place regarding the securities of the client.

Diversifying the portfolio Diversified investment advisers can confirm that an investors assets are expand across different sectors and in several types of investments such as stocks, bonds and choice investments. An investment advisor can also serve to vary and look beyond local investments and look at investing in foreign stock markets or mutual funds. This means that if there is a collapse in one sector or one class of investment, only a portion of the portfolio is affected.

Vacuum Food Sealers As An Investment For The Future And Your Healthiness

Vacuum food sealers are an investment decision for the future. Some may say that they are not worth the money and they’re expensive, but this conjecture is put to rest as soon as you own one of your very own best food sealers. The cash spent on a quality vacuum food sealer is absolutely an investment. You can vacuum seal all of your dry foods for a longer and healthier shelf life, you can store your food in the refrigerator or freezer, so as you can see; they have several functions for use. If you invest in one there will be a stop to throwing away food due to old age dates, mold, frost bite and mildew. By using a vacuum sealer you will most absolutely quadruple the shelf life of any particular food. Vacuum sealers are very simple and fool-proof to use.

Vacuum food sealers completely eliminate all the air from the special vacuum sealer freezer bags (in which you put your food in) and seals the special freezer bags with an airtight heat seal. This simplistic system will certainly impress you once you understand that you will be saving money and time from spoiled foods and various visits to the grocery store. Vacuum food sealers work internally by performing three key tasks without hard work from you. They remove oxygen (by sealing air out of the bag) which dramatically slows down the making of mold and bacterial growth. Vacuum food sealers are a must have for the reason that they also keep and create a moisture barrier.

Countless people are worried that as a result of totally getting rid of all the air from the vacuum sealed freezer bags, that their meat will lose all of its moisture and in turn make it dry, on the contrary this is not the case. Vacuum sealers keep the moisture in your foods while at the same time keeping excess moisture out. This will prevent you from opening a bag and having slimy meat! And lastly a vacuum food sealer is a must have because it makes a flavor barrier that makes it possible for the food being stored to retain its entire original flavor, and keeping the unwelcome flavors out. Vacuum food sealers are a must have in every kitchen because once you open a sealed package, the taste is just as fresh and vivacious as when you first sealed it up over a month ago!

There are countless uses that come from purchasing a vacuum food sealer. You can vacuum seal practically every single dry food for extended shelf storage such as whole bean or ground coffee for long-term storage without the worry of it going bad, you can store nuts and seed for longer periods of time at room temperature, and you can even vacuum seal soups or stews. Vacuum sealers are great for saving left overs in the refrigerator or the freezer without them getting frost bite or obtaining mildew. There are endless uses for a vacuum food sealer in which they save you time and money!!