Evgeny Smirnov

Bsadsensedinamick

# Investments

What are direct and portfolio investments?

A direct investor develops a chosen enterprise, a portfolio investor buys shares of already successful companies.

Article navigation

Definition of direct and portfolio investments
How are direct and portfolio foreign investments similar?
How do direct investments differ from portfolio investments?
Purpose of participation in investment: direct, portfolio and other investments
Direct and indirect investments: essence, forms and principles
Are private equity investments different from venture capital investments?

It is well known that the classification of investments has a complex and ramified structure. Profitable financial investments vary in many ways. This article will discuss the similarities and differences between direct and portfolio investments.

Definition of direct and portfolio investments

Direct investment is the financing of the creation (creation or reproduction) of fixed assets of a particular enterprise. A typical situation typical for this type of investment: a company needs money to purchase equipment that can strategically solve the problem of increasing profitability. The management of the enterprise approaches a person (individual or legal entity) with a proposal for financial participation. A business plan is demonstrated, which describes the investor’s benefits from the investment with a detailed schedule for disbursing the requested funds. The conditions for control and cooperation are discussed.

Portfolio investments represent an injection of money into the turnover of an enterprise in order to increase its financial assets. In this case, we are not talking about achieving control over economic activities. The investor is interested in the rate of return, that is, the rate of profit per invested monetary unit or one share.

The similarity is manifested primarily in the goal of each investment - the most efficient use of available funds. All profitable investments, both domestic and foreign, are subject to this rule.

Foreign portfolio investments indicate general confidence in the recipient country. Since relatively small shares of the stock do not provide the opportunity to interfere in the management of the enterprise, the financier, when purchasing them, hopes for the stability and reliability of his investment. In general, capital inflows are beneficial for the national economy and confirm a good investment climate.

The same considerations apply to direct investment. A foreigner buying shares in an enterprise must have a minimum acceptable degree of confidence that his funds are protected by the state and that the legislation is stable. Otherwise, the acquisition may result in losses, even if the investor is actively involved in the management of the property and has the necessary skills for this.

In some cases, the criterion of similarity may be the method of purchasing assets (production or financial). This can be done directly from the issuer of the securities or indirectly through a stock exchange or secondary market from a third party. In this case, what matters is not the place in which the sale of shares is carried out, but the purpose of this operation. If a financier wants to obtain the right of management control, he buys the enterprise “in parts” from different holders.

A portfolio investor generally does not care who to buy shares from - he is only interested in their economic performance.

Commonality is also observed in the nature of a specific product, which is securities. Whether they are part of a portfolio or part of a direct investment, they can be speculated on or realized under certain circumstances.

How do direct investments differ from portfolio investments?

First of all, direct investments differ from portfolio investments in the nature of the assets for the development of which they are spent. The shares included in the portfolios were purchased with funds that the recipient disposes of at his own discretion as a financial instrument. Direct investment involves strictly targeted use (purchase of fixed assets, their renewal, modernization, construction, etc.).

Another difference is the amount. The contents of the portfolio are formed by several types and types of securities. This structure is appropriate for ensuring diversification, but is completely unsuitable for a takeover strategy. In other words, it is difficult to concentrate not only a controlling stake, but even a tenth of the total capital of an individual enterprise in one portfolio.

The third significant difference is in the timing of investment. Shares in a portfolio can be held for quite a long time, but can be sold at any time if they no longer provide financial returns. There are other considerations for selling, particularly speculative ones.

Direct investment is calculated as a long-term investment (at least five years). The reason for such a long cycle lies in the very nature of the operation. Such an investment, by definition, is aimed at developing production capacity and subsequent payback. There is little point in getting rid of securities before reaching point “zero” (beginning of making a profit).

In Russia, the differences between portfolio and direct investment are clearly demonstrated by the prevalence of the latter. In the conditions of the domestic economy, the attitude towards impersonal securities is wary, especially against the backdrop of the low development of the stock market.

In the United States, a significant part of the population is involved in stock exchange transactions. Ordinary citizens buy shares, form their own portfolios (on their own or using the services of financial advisors), that is, they act as investors. Russians don't trust securities. And the enterprises themselves (especially successful ones) prefer to find other sources of third-party capital for fear of the consequences of an uncontrolled issue of shares.

In the Russian Federation, direct investments are still practiced, when the financier knows who the cash flow will go to and what it will be spent on. It is likely that over time this proportion will change and Russians, like Americans, will invest their savings in the development of the domestic economy.

Purpose of participation in investment: direct, portfolio and other investments

It is obvious that the motivations of direct and portfolio investors are different. It is easier to understand the motivations if you take into account the classification of financial investments.

Real investments are called if they are aimed at the development of specific assets, that is, fixed assets. They are expressed in capital investments. Naturally, most of them are straight.

Financial investments consist of investments in instruments for generating income. When implementing them, the investor does not go into the intricacies of the economic mechanism of the issuing enterprise. He will be pleased if he receives an acceptable amount of dividends for the ruble invested in a certain company. This is precisely the situation described by the American writer Theodore Dreiser: small stock exchange dealers watched with which foot the financial tycoon would step onto the asphalt when getting out of the car. If on the left, then today he is “bearing”, that is, he is selling. This was their sign. Investor-financiers do not think about how the invested enterprises operate.

We can come to the conclusion that a direct investor seeks income by developing a specific enterprise and increasing its value. Ideally, he absorbs a growing company and receives the lion's share of its profits. His portfolio colleague goes to the same goal in a different way - he buys the most profitable or promising securities.

The duration of the investment cycle also serves as a classification criterion. Short-term investments are considered to be two years or less. The average period is from two to three. All other investments are long-term. The cycle time demonstrates the investor’s intentions - to make money quickly or to develop the object for a long time.

According to the form of ownership, investments are divided into:

private;
government;
internal;
foreign;
joint.

Each of the subjects pursues its own goals.

When allocating funding for a project, the state takes into account its social or other important significance (for example, general economic or even defense).

The task of a private investor is profit, but even here, not everything is simple. Sometimes an individual business entity seeks to establish a monopoly position or control entire sectors of the national economy. In some cases, investment is subject to legislative restrictions related to the fight against monopolies and state economic security.

Foreign investors taking capital out of their country pursue a variety of goals. Some are looking for the most favorable conditions for business (cheap labor, energy, raw materials, close markets, etc.). Others want to diversify revenue across currencies. Still others “signify presence” in regional markets, demonstrating the brand with an eye to the future. The forms of such expansion are mutually beneficial joint ventures, branches, foreign representative offices and subsidiaries.

With the industry attribute, everything is clear: investments can be directed to individual target sectors of the economy (agriculture, light, heavy or other industries, IT technologies, trade, etc.).

An investor's interest in a certain sectoral specialization indicates the potential of the industry, in other words, its insufficient development.

Another criterion for classifying financial investments is the degree of riskiness. An aggressive portfolio indicates the investor’s desire for a high rate of return at the expense of security. Conservatism is manifested in the prevalence of reliable securities, but possible lost profits are sacrificed. Requirements for stock liquidity are dictated by the need to quickly raise funds.

Summarizing the above areas of investment, we can come to the conclusion that the main goal of portfolio investments is to extract speculative income. Direct investments are aimed at developing the real sector of the economy.

Direct and indirect investments: essence, forms and principles

Indirect financial investments are direct or portfolio investments in the form of securities purchased from intermediaries.

The role of the “transfer link” is played by specialized funds, mutual funds, brokerage and insurance structures, banks and financial consulting organizations.

These intermediary enterprises acquire shares of different companies and then sell them to interested parties. Securities are included in ready-made, optimized portfolios that take into account individual requirements.

Indirect investments are also called indirect or indirect. Their share should not exceed a tenth of the company's capital. Otherwise, such a block of shares can be used to seize control over the enterprise, which is typical for direct investment.

Direct investments	Portfolio investment
Direct investment involves the direct, direct participation of the investor in investing capital in a specific investment object, be it the acquisition of real assets, or the investment of capital in the authorized capital of an organization. The objects of direct investment are, as a rule, equipment, buildings, and know-how.	Indirect (mediated) investments involve the investment of investor capital in investment objects through financial intermediaries (institutional investors) through the acquisition of various financial instruments. The objects of portfolio investment, as a rule, are various securities, bank deposits, and foreign currency.
Direct investors are companies and entrepreneurs who invest in the acquisition of equipment, buildings, know-how in order to organize production and make a profit from such direct investments. Although in joint stock companies there is no such division into portfolio and direct investors. There are minority shareholders and majority shareholders. Large, medium, small.	A portfolio investor is a person or institution that purchases a financial instrument for its investment portfolio, that is, a certain set of investment instruments. Portfolio formation is associated with the tasks of risk diversification across different financial assets. Therefore, an investor who purchases a small block of shares or securities of an enterprise is not a direct, that is, a strategic investor, but is a portfolio investor.
Direct investments can also be made at the expense of financial (portfolio)	Briefcases - they can’t
Cannot be carried out through the secondary securities market	They can be carried out through the secondary securities market, but cannot turn into direct ones, since they go only to the owners of shares, and not to the enterprise. Yes, but not related to direct ones in any way
When forming the Authorized Capital, there is a relationship between direct and portfolio funds. Portfolios ultimately turn into direct ones. Often real investments cannot be made without issuing shares, i.e. without financial investments. Financial investments are an essential part of planning direct, real investments.

From the foregoing, we can conclude that financial investments are a link in the transformation of savings into real investments and serve as one of the most important channels through which savings enter production, and at the same time they can act as a relatively independent form of investment.

54. The role of scientific and technological progress in the development of the world economy.
STP is a continuous process of discovering new knowledge and applying it in social production, allowing for a new combination of existing resources in the interests of increasing the production of high-quality final products at the lowest cost. In a broad sense, scientific and technological progress refers to the creation and implementation of new equipment, technologies and materials, as well as the use of progressive methods of organizing and managing production.

There are two main forms of NTP:

1. Evolutionary, involving the gradual improvement of equipment and technologies; economic growth is ensured through quantitative indicators;

2. Revolutionary (scientific and technical - scientific and technological progress), manifested in a qualitative update of equipment and technologies, a sharp increase in labor productivity; economic growth is achieved through qualitative changes.

As evidenced by the practice of developing scientific and technical potential, sources of R&D financing play an important role: where the share of private investment averages 60% or more, a positive trend in the growth of investments in R&D and their high efficiency remains. This trend is characteristic of almost all OECD member countries: an increase in private investment against the background of a decrease in the share of investment from the state budget. So in the United States, private investment accounts for more than 60%, budgetary investment accounts for an average of 20–25%, and the rest comes from charitable foundations and grants. According to experts, the effectiveness of the US innovation system is due to clearly formulated tasks on a national scale, a high degree of intellectual property protection within the framework of state innovation policy (stimulating active patenting), a large share (~ 50%) of venture capital in the total volume of R&D financing, close ties between TNCs and universities. The American model in the field of R&D practically extends to all OECD countries, where, in addition to the United States, the leading EU countries occupy a stable position (Table 23).

At the same time, at the turn of the XX/XXI centuries. and in the development of the 2000s. The share of the group of developing countries is noticeably increasing, especially in the Asia-Pacific region. Here the leading role belongs to the PRC. The share of R&D expenditures in China's GDP is constantly growing: the period from 1996 to 2009. costs increased 3 times from 0.6% to 1.7%, respectively. The shift towards increasing R&D spending in China, along with government policy, is due to investments by TNCs in their foreign subsidiaries, which is explained by the increasing professional level of China's scientific personnel and their relatively low cost compared to developed countries.

As for Russia, the scientific and technical sphere here is noticeably inferior to developed countries in terms of the scale and intensity of innovation. Russia accounts for just over 1% of global spending on science, although research organizations employ more than 6% of the world's scientific workers. Funding for scientific research is carried out mainly by the state (more than 60%), while the share of the domestic business sector does not exceed 15%. Russia spends less on science than Japan by 8–9 times, Germany by 4 times, and the USA by more than 20 times. The reduction in internal costs for science is accompanied by a reduction in the number of scientific organizations (primarily industry ones) and the number of workers employed in them.

Plan

1. The essence and forms of international capital movement

2. Direct and portfolio foreign investments

3. Free economic zones

4. International lending. Global debt crises.

Topic: “International capital movements”

Plan

The essence and forms of international capital movement

For hundreds of years, world trade has occupied a position in international economic relations. However, at the end of the 20th century. free movement of capital becomes the absolute leader.

Formed monetarist philosophy- technology for creating an open global financial space that does not recognize national borders and sovereignties. It was especially evident in the creation of global financial pyramids. There has been a replacement of production practices with redistribution ones. Previously, the main profit was obtained in the process of real production, now it is obtained as a result of games with exchange rates. The virtual “financial economy”, or the production of money for the sake of money (usury, interest on loans), is condemned by Christianity and Islam as contrary to human nature.

International capital movement is a determining element in the functioning of the world economy. At the beginning of the 21st century. The annual currency turnover amounted to over 400 trillion dollars. and 80 times higher than world trade in goods. The average daily market turnover is over 5 trillion. dollars. According to the Bank for International Settlements, over the past few years, bonds worth 5.3 trillion have been issued annually in the world. and issued bank loans worth $9.8 trillion. World trade, which developed dynamically after the Second World War, began to give way to the movement of capital. On average, in the 90s, world exports of goods and services amounted to 5 and 1.2 trillion US dollars, respectively.

The international movement of capital is determined by the movement of one of the factors of production, the economic preconditions of which in one country are more effective than in other countries.

International investment varies according to sources of origin, nature, time and purposes of use.

Foreign investments can be different in nature and form.

By source of origin foreign investments differ as follows:

State capital investments (official) are funds from the state budget that are sent abroad or received from there by decision either directly from governments or from intergovernmental organizations. These are government loans, loans, grants, assistance, the international movement of which is determined by intergovernmental agreements. This also includes loans and other funds from international organizations.

Private capital – these are funds from non-state sources placed abroad or received from abroad by private individuals (legal entities or individuals). This includes investments, trade loans, interbank lending; they are not directly related to the state budget. But the government keeps their movements under review and can, within its powers, control and regulate them. In practice, there are very subtle methods of converting public funds into private investment.

By placement period Foreign investments are divided into short-term, medium-term and long-term.

By nature of use Foreign investments are either loan or business.

Loan investment means lending money to earn a profit in the form of interest.

Entrepreneurial investments are directly or indirectly invested in production and are associated with obtaining a certain amount of rights to receive profit in the form of a dividend.

By purpose Entrepreneurial investments are divided into direct and portfolio investments.

Historically, the export of capital was formed as the export of capital from a small number of industrialized countries to more backward ones.

The constant development of the world economy has turned the export of capital into a necessary condition for the efficient functioning of the economy of any country. At the same time, not only industrially developed countries, but also moderately developed and developing countries export capital. Moreover, each country is both an exporter and an importer of capital. The movement of capital has turned from one-way to forward-looking. The actual global capital market has emerged as part of the global financial market.

Money market determines the relationship between supply and demand for short-term means of payment. This is usually an international commercial loan provided for the purchase of goods and payment for services. The movement of short-term capital thus includes all credits, or borrowings, agreements on which are concluded on the international foreign exchange market.

Medium-term and long-term loans, being part of the global credit market, at the same time constitute an integral element of the global capital market.

World capital market regulates the movement of long-term assets in the form of investments. The movement of long-term capital includes all movements of capital provided to foreign countries for a long period and return payments - interest, principal.

Reasons for the export of capital

The most important reasons for the export of capital to obtain greater profits are:

1. Over-accumulation of capital in the country from which it is exported.

2. The discrepancy between the demand for capital and its supply in various parts of the world economy.

3. Possibility of monopolizing the local market.

4. Availability of cheaper raw materials and labor in the countries where capital is exported.

5. Stable political situation and generally favorable investment climate.

Direct and portfolio foreign investments.

Investments(capital investments) a set of costs of material, labor and monetary resources aimed at the expanded reproduction of fixed assets in all sectors of the national economy. Investments are a relatively new term for the Russian economy. Within the framework of the centralized planning system, the concept of “gross capital investments” was used, which meant all the costs of reproduction of fixed assets, including the costs of their repair. The concept of investment also covers the so-called real investments, which are close in content to our terms “capital investments” and “financial” (portfolio) investments, that is, investments in stocks, bonds, and other securities.

Portfolio investments are represented by securities appearing in the portfolio of the country that provided the capital. These are stocks and bonds placed in major financial centers. The purchase of securities in this case is not accompanied by the establishment of control. The main goal is to generate income, and therefore the size and dynamics of portfolio investments are influenced by the difference in interest rates paid on bonds in individual countries. All portfolio investments can be divided into stakes of enterprises in the amount of less than 10% and debt securities (bonds, bills, etc.).

Portfolio investments are an important source of attracting foreign capital to finance bond issues issued by major corporations, public and private banking institutions.

Direct investments - These are investments in production that give the investor the right to control the management of enterprises in the country receiving the capital. In international practice, such investments are called foreign investments. Non-controllable payments, borrowings and purchases of securities are defined as movements of capital.

The growth of portfolio (speculative) investments is stimulated by the needs of diversification and the desire to avoid taxation. Direct investment is increasing with the increasing mobility of modern production technologies and the development of joint ventures.

To attract foreign investment, individual economic preferences are no longer enough; it is necessary to create competitive regional economic conditions, including political, social and production and economic factors. It must be remembered that portfolio (speculative) and direct investments behave differently in local markets. speculative investments quickly come and go if the financial market is poorly developed, direct investments are made through the purchase of property or part of it, for example an individual firm or company. German entrepreneurs prefer to invest abroad - direct investments, while American businessmen, geographically distant from many local markets, rely on portfolio investments. The world leader in attracting foreign investment, especially in information technology, is the United States.

In the process of economic globalization, the importance of foreign direct investment (FDI). At the end of the 20th century. their share in foreign capital investments amounted to more than 30%. FDI has become one of the leading forms of international economic relations, and the role of direct investor is most often played by transnational corporations. In the modern world, the main method of placing FDI, especially in industrialized countries, is cross-border M&As - transcorporation transactions for the merger and acquisition of foreign companies.

Investment climate - a set of political, economic and sociocultural conditions for attracting foreign or domestic capital, real business conditions in a given place. For example, the investment climate in Russia is assessed as unfavorable.

The use of foreign investment allows:

· Revitalize the economy

· Gain access to advanced technologies and management methods;

· Counteract the increase in the state’s external debt by providing funds to repay it;

· Stimulate the development of society’s own productive forces;

· Promote efficient production and economic growth, its integration into the global economic system through industrial and scientific and technical cooperation.

Indirect benefits of foreign investment include:

· Attracting new technologies, equipment and know-how;

· Opportunity to train specialists, managers and entrepreneurs who are proficient in modern technologies of management and production organization;

· Activation of the export potential of the donor country;

· Development of regional resources.

3. Free economic zones.B In the world practice of foreign economic activity, there are different models of territorial and economic management. In this series of complex formations there are also economic structures that are known as free economic zones (FEZ). Various types of such zones are called “islands” of the world economy, “windows” for the influx of foreign investments, technologies, and management skills into numerous regions and countries. Finally, many economists see the SEZ as a prototype of a new “open door” policy to the global economic system.

SEZs as compact territorial entities can be called both ancient and modern. Their roots go back to ancient times and at the same time enrich their practical activities with new content of modern civilization. “Free economic zones,” according to American scientists M. Frazier and R. Ren, “are one of the oldest and at the same time the newest ideas of mankind in the field of economic development.”

Even in the era of hoary antiquity, the ancient Phoenicians, Egyptians and Chinese used free economic zones to develop foreign trade. At that time, the zones acted in the form of free harbors and ports. Carthage became the first free port in 814. BC. In the 13th century, free trade zones began to function. History captures the prototype of the free zone on the ancient land of Polotsk.

Free economic zones are international economic formations. They have become global in nature, covering almost all countries of the world, including rich and poor. With their help, a very intensive integration of entire regions into the system of world economic relations occurs.

Free economic zones are areas of very high concentration of trade, financial, industrial, and technological connections. They are centers of a high level of development of market relations, entrepreneurship, a place for improving technology and management mechanisms. At the end of the twentieth century, these phenomenal formations became a significant factor in the world economy and represent unique commercial centers that accelerate global trade turnover and stimulate foreign trade.

SEZs, at the newest stage of their development, are regularly and powerfully carrying their baton into the new millennium, penetrating into all spheres of the world economy. According to Western experts, by the beginning of the 21st century, over 1/3 of world trade turnover will pass through free economic zones.

The goals of countries creating SEZs may be different. Some countries use zones as an economic integration mechanism, while others use them to attract foreign technology. The UK, for example, began to create free airports (in Liverpool, Birmingham, Cardiff, Southanton, Prestich and Belfast) in 1981 with the aim of expanding employment opportunities and attracting activities that could boost economic conditions at the national level. Post-socialist countries in SEZs are testing elements of the market mechanism of the market economic mechanism. In the United States, a 1934 law required zones to facilitate and encourage foreign trade by exempting foreign goods from tariffs upon entry into the United States.

As we can see, a few examples are enough to verify the difference in the goals of creating a SEZ. However, despite the differences between these goals, they also have some commonality, within which economic, social and scientific and technical goals can be distinguished.

Economic:

o deeper inclusion of the national market into the global economic system;

o attracting foreign and national investments for the development of highly profitable production;

Social:

o comprehensive development of backward regions;

o increasing the number of jobs and ensuring employment of the population;

o education and training of qualified national workers, engineering, economic and managerial personnel;

o saturation of the national market with high-quality goods.

Scientific and technical:

o use of the latest foreign and domestic technologies;

o introduction to new forms of managerial work;

o attracting experience and scientific and technical centers;

o increasing the efficiency of used production facilities, infrastructure and conversion complexes.

All these and other goals of organizing a SEZ can be realized under a whole system of conditions created for foreign investors and the host country. In this regard, we will name the most important conditions for the normal functioning of the SEZ:

o political stability in the country creates an overall favorable investment climate. As practice has shown, it can be decisive in attracting foreign investment;

o the presence of a well-developed legislative framework that guarantees the rights and stimulates the activities of foreign and domestic investors;

o availability of developed infrastructure (industrial and commercial);

o a very important condition is the natural geographical environment.

The most important stimulator for the development of SEZs is the system of benefits for investors, who, before investing capital, carefully study the conditions of benefits provided to them.

Each country or one or another of its regions, when creating a SEZ, determines its own set of benefits. At the same time, as practice shows, the system of benefits established in the SEZ is quite individual and is related to the programs and projects implemented on its territory. However, in the economic literature there are four main groups of benefits:

fiscal benefits, stimulating the development of certain entrepreneurship inputs. They apply to taxes on profit, income, property and the level of tax rates. Their scope includes issues of permanent or temporary tax exemption for entrepreneurs;

financial benefits in the form of establishing low prices for the use of land, industrial premises, infrastructure facilities, and utilities. Financial benefits are the provision of various forms of subsidies from budget funds and preferential government loans;

administrative benefits usually provided by the administration of the FEZ in order to simplify the procedures for registering enterprises, entry and exit of foreign citizens and the provision of various services. The simplicity of administrative procedures is always positively assessed by the investor, and sometimes is decisive in attracting foreign capital to the zone;

foreign trade benefits. They are mainly related to the introduction of a simplified procedure for carrying out foreign trade transactions, as well as the reduction or abolition of export-import duties.

All of these benefits can be applied in various combinations.

The classification of SEZs is not just a list of them with a brief description, it is the evolution of their development, formation and functioning.

o Warehouse and transit zones (the most ancient, the simplest)

o Free customs zones

o Free Trade Zones

o Export production zones

o Complex zones

o Free scientific and technical zones

o International zones

o Program zones

The beginning of the era of globalization of all processes, primarily economic ones, confronts many entrepreneurs and investors with the task of choosing the most effective business model that corresponds to the spirit of the times. The emergence of such new forms of business models as online retailers (Amazon.com, eBay, Alibaba, TaoBao), crowd investing investment platforms that are gaining strength in the innovative sector, as well as the absence, in fact, of any boundaries of the movement of capital, intellectual resources and knowledge, poses a difficult task for many traditional forms of doing business to survive in a highly competitive business environment.

In addition, we should add the accelerated development of new capital management technologies (using the latest investment methods through communication networks), the distribution of financial flows not only through traditional banking structures, offshore profit centers, but also through electronic exchange and auction platforms, payment systems, etc. .d. In this context, familiar concepts such as direct portfolio and other investments take on a completely different meaning and provide new unique opportunities for investors.

In order to effectively manage a business and make management decisions that are adequate to current conditions, it is necessary to clearly understand what direct and portfolio investments are, and the logic of their relationship with each other and external conditions. First of all, it is necessary to remember that direct and, the definition of which, presented in academic science, has long been outdated, since the interpenetration of financial and industrial capital has long erased any boundaries between them.

In a general definition, direct investment represents the investment of capital directly into the business itself, complete control over it and all production and financial flows. Moreover, this control can be established both by direct purchase of the company, and through technologies for acquiring a controlling or blocking stake (both on the open market and over-the-counter) through the same direct portfolio investments.

Portfolio direct investments represent the primary investment of capital in financial instruments to obtain an increase in its value over a given period of time.

If we talk about their properties, the characteristics of direct investments and portfolio investments are largely similar in that investment of capital both directly in business and in securities provides for:

Making a profit at a given point in time
Principles of diversification of financial investments— portfolio and direct investments
Risks(cm. ) , inherent in both the real sector of the economy and its financial component
Financial flow management both in a production asset and assets included in the investment portfolio
The degree of professional and economic competence in matters related to the conduct of a specific business, or participation in its management by entering into the authorized (share) capital

It is also worth noting here that direct and portfolio investments are a very effective mechanism for the redistribution of capital from non-competitive and obsolete sectors of the economy and companies to more promising and innovative types of business.

The difference between portfolio investments and direct investments mainly lies in the fact that a portfolio investor, using more liquid instruments, can always quickly regroup assets in his portfolio, which, naturally, is not possible for an investor who has purchased a factory, retail chain or real estate. For example, it is always easier to place a block of shares in an IPO on the stock exchange than to find a direct buyer who may also request a significant discount.

On the other hand, the main positive difference between direct and portfolio investments is that the owner of an actually operating enterprise is less exposed to market risks associated with price fluctuations on stock exchanges.

Summarizing what has been said, it should be concluded that direct and portfolio investments and their mechanism of action have more similarities than differences, which is actually confirmed by practice. For example, many companies and corporations have special divisions involved in the formation and management of a portfolio of securities both for the company itself and for the business of its partners and competitors.

Direct portfolio and foreign investments in the Russian economy

The period of formation of the modern Russian economy is relatively very short, but the accumulated entrepreneurial experience and knowledge are largely sufficient to speak about the existence of fundamental prerequisites for the development of investment business.

Previous periods of development of the investment industry, ranging from check (voucher) privatization to the “golden” period of the Russian stock market (before the start of the 2008-2009 crisis) are also largely due to the fact that foreign direct and portfolio investments made up a fairly significant part of the Russian investment market .

For example, until 2009, the share of foreign investors in stock assets listed on the MICEX reached 40-45% (according to the RBC agency).

Here it is necessary to make, however, one small clarification. Statistics regarding foreign investment only take into account the final destination of money from abroad and do not take into account its actual original origin.

Therefore, foreign investments should be considered (about more than 70-80%) the financial assets of Russian companies themselves. This money is repatriated from offshore jurisdictions for investment in domestic businesses.

In addition, a significant part of foreign money preferred the portfolio form of investment, largely fearing the market risk of direct investment in the Russian economy and the lack of guarantees for the security of property rights. However, portfolio investments and direct investments of both Russian and foreign origin played a significant role in the growth of the national economy before the start of the crisis in 2013-2014, providing an average GDP growth of 3-4%.

If we talk about sectors of the economy and instruments for investing capital on the part of foreign investors, the difference between portfolio investments and direct investments was most clearly manifested. The greatest demand was for assets (shares) representing the oil and gas sector (Gazprom, Lukoil, Yukos, Surgutneftegaz, Uralkali), banking (Sberbank, VTB) and industrial (NLMK, MMK, ChTZ, KAMAZ).

While the real sector was represented by partial participation of investors in oil production projects (Sakhalin-1, 3 projects, Nord Stream-1 gas pipeline, purchase of TNK BP) and in several mechanical engineering projects (such as Auto VAZ, Superjet 100, screwdriver assembly of cars in Kaluga or Vsevolozhsk, etc.).

At the end of the topic, a few words about the fact that the definition of direct and portfolio investments has now become almost arbitrary, and an investment fund, under certain conditions, can become the owner of a large enterprise, a company, just as any entrepreneur in the same way (sometimes without realizing it) can be a regular portfolio manager. The main secret is the set goals, which form the investor’s final idea of where and how to invest his capital.

Send your good work in the knowledge base is simple. Use the form below

Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.

Posted on http://www.allbest.ru/

in the discipline: “Foreign Investments”

Topic: Direct and portfolio investments

Is done by a student

Sviridov D.

Saint Petersburg

Introduction

1. Economic essence and forms of investment

2. Internal and external sources of investment

3. Direct investment

4. Portfolio investments

5. Principles of forming an investment portfolio

Conclusion

Bibliography

INTRODUCTION

Currently, the Russian economy is on the rise: a budget surplus, a decrease in inflation, a strengthening of the ruble, and an increase in business activity in the economy. However, the structure of the Russian economy, in which the main emphasis is on the mining industry, is not undergoing significant changes. According to experts, almost complete depreciation of fixed assets of many Russian enterprises will occur in 2005-2007. Accordingly, the modernization of enterprises is a key factor in the successful development of the Russian economy in the coming years.

In this regard, the main and most urgent task of state policy in the field of modernization of the country's industry is to create conditions for a dynamic investment process. As an example, we can consider countries that, in a relatively short period of time after the Second World War, modernized their economies (Japan and some Western European countries). Their distinctive feature was a very high share of investment in the gross national product. Stimulation of investment in order to modernize the industrial structure was carried out in the United States both in the early 60s and in the 80s.

The problem of investment in Russia is further complicated by the fact that many Russian and foreign investors remember the consequences of the 1998 financial crisis. Until now, many foreign investors who left the Russian market after the 1998 crisis have never returned. In this regard, government authorities have recently paid special attention to the investment climate in Russia, which reflects the risks and efficiency of investment.

The characteristic features of a market economy are the dynamism of the economic environment, constant changes in external factors that determine the policy of the enterprise, changes in competitive prices for products, fluctuations in exchange rates, inflationary depreciation of the assets of an economic entity, the emergence of competitors providing products of identical or superior quality. To maintain the competitiveness of the enterprise and its market share, the enterprise constantly needs to reconstruct production facilities, update the existing material and technical base, increase the volume of production activities, and develop new types of activities.

To reconstruct old equipment and purchase new equipment, an enterprise needs a large investment of money, which is most often not available to the enterprise due to the lack of available funds. To attract the necessary funds, an enterprise must pursue an aggressive investment policy.

Investment activity, to one degree or another, is inherent in any enterprise. With a large selection of types of investments, an enterprise is constantly faced with the task of choosing an investment solution. Making an investment decision is impossible without taking into account the following factors: type of investment, cost of the investment project, multiplicity of available projects, limited financial resources available for investment, risk associated with making a particular decision, etc.

Investments - cash, securities, other property, including property rights, other rights that have a monetary value, invested in objects of entrepreneurial and (or) other activity in order to make a profit and (or) achieve another useful effect.

The significance of a comprehensive study of state regulation of investment activity is determined by the fact that investment management is the most important means of structural transformation of Russia's production and social potential, increasing its efficiency, and implementing effective counter-cyclical and social policies.

The main purpose of this essay is to reveal the essence of investments. The abstract will describe the concepts and essence of investment, and will also cover the topic of sources of investment. Direct and portfolio investments and their composition and functions have been studied.

1. ECONOMIC NATURE AND FORMS OF INVESTMENT

The concept of “investment” is quite multifaceted. In general, investment in economic literature refers to any current activity that increases the future ability of the economy to produce output. Accordingly, investing money and other capital in the implementation of various economic projects with the aim of subsequently increasing them is called investing. Legal entities and individuals making investments are investors. The economic motive for investing funds is to receive income from their investment. In other words, investments include only those investments that are aimed at making a profit and increasing the volume of capital. Consumer investments, for example, in the purchase of household appliances, cars for household personal use and other goods in their economic content are not considered investments. In world practice, there are three main forms of investment:

· real (capital-forming) investments;

· portfolio investment;

· investments in intangible assets.

Real (capital-forming) investments are investments in real assets, i.e. in the creation of new, reconstruction and technical re-equipment of existing enterprises, production facilities, technological lines, various production and social service facilities in order to increase fixed assets or current assets.

Portfolio investments are investments in the purchase of securities of the state, enterprises, banks, investment funds, insurance and other companies. In this case, investors increase their financial capital rather than their production capital, receiving income from owning securities. At the same time, real investments of funds spent on the purchase of securities are made by enterprises and organizations that issue these securities.

Investments in intangible assets include investments aimed at acquiring licenses, patents for inventions, certificates for new technologies, trademarks, certificates for products and production technology and other intangible assets.

Investments in economic literature are usually classified according to the following main characteristics:

1. By the nature of participation in investment:

a) direct investment - direct investment of funds by the investor in investment objects (this type of investment is carried out mainly by trained investors who have fairly accurate information about the investment object and are well familiar with the investment mechanism);

b) indirect investments - investments mediated by other persons (investment or financial intermediaries). These investments are made by investors who do not have sufficient qualifications to select investment objects and further manage them. In this case, they purchase securities issued by investment or other financial intermediaries (for example, investment certificates of investment funds and investment companies), and the latter place the investment funds collected in this way at their own discretion - they select the most effective investment objects and participate in their management , and the income received is then distributed among its clients.

2. By investment period:

a) short-term investments - investment of capital for a period of no more than one year (for example, in quickly implemented commercial projects, short-term deposits, etc.);

b) long-term investments - investing capital for a period of more than one year (usually in large and long-term investment projects). In the practice of investment companies and banks, long-term investments are detailed as follows: up to 2 years, from 2 to 3 years, from 3 to 5 years, more than 5 years.

3. By form of ownership:

a) private investments - investments made by citizens, as well as non-state enterprises and organizations;

b) public investments - investments made by central and local authorities and management at the expense of budgets, extra-budgetary funds, as well as state-owned enterprises at the expense of their own and borrowed funds;

c) foreign investments - investments made by foreign citizens, legal entities and states;

d) joint investments - investments made by persons of a given country and foreign countries.

4. By regional basis:

a) domestic investment - investment of funds in investment objects located within the borders of a given country;

b) investments abroad - investing in investment objects located outside the country.

2. INTERNAL AND EXTERNAL SOURCES OF INVESTMENT

The main sources of investment are shown in Fig. 1:

Fig. 1. Sources of funds for investment

Investments, especially real (capital-forming) investments, can be made both from internal (national) and external (foreign) sources. Both sources of investment play a significant role in enhancing the attraction of capital and development of the country's economy. First, let's consider internal sources of investment. On a national scale, the overall level of savings depends on the level of savings of the population, organizations and government. Thus, the population can save certain funds for the future, companies can reinvest part of the profits received from their activities, and the government can accumulate funds by exceeding budget revenues over expenses. At the same time, the volume of savings directly affects the volume of investment in the country, since part of the funds is spent on consumption, and the rest on investment. Based on this, the following main internal sources of investment can be identified:

a) profit

Businesses and organizations often use profits as a source of investment. They use part of the profit received to develop their business, expand production and introduce new technologies. It is obvious that those enterprises and organizations that do not allocate funds for these purposes ultimately become uncompetitive. Enterprises sometimes try to make up for the lack of financial resources, including for business development, by increasing prices for their products. However, it should be borne in mind that an increase in prices for their products causes a reduction in demand for them, which leads to problems with the sale of products, and, as a consequence, to a decline in production.

b) bank loan

Bank lending in many developed countries is one of the main sources of investment. At the same time, long-term lending plays a special role, since in this case the burden on the borrower is low and the enterprise has time to “promote” the business. However, the role of bank lending as a source of investment depends on the development of the banking system and economic stability in the country. There is no doubt that instability in the country leads to the reluctance of banks to issue long-term loans and finance investment projects. In general, bank lending contributes to a gradual increase in production and, as a result, to the overall growth of the country’s economy.

c) issue of securities

The issue of securities is gradually becoming a source of investment in Russia. At the same time, in developed countries, the issue of securities is one of the main sources of financing investment projects. In order to raise funds, enterprises can issue both shares and bonds. At the same time, buyers of securities, as a rule, can be any legal entities or individuals with available funds. In this case, it is they who act as investors, providing their own funds in exchange for the company’s securities.

d) budget financing

Currently, Russia is experiencing a state budget surplus. Thanks to this, it is possible to implement part of investment projects through centralized sources of financing. At the same time, both non-repayable budget financing of nationally significant projects and lending to potentially profitable projects can be used. Public investments are usually directed to the implementation of a limited number of regional programs, the creation of particularly effective structure-forming facilities, the maintenance of federal infrastructure, etc. At the present stage of development of the Russian economy, priority areas from the point of view of budget financing are stimulating industrial development and maintaining scientific and production potential.

e) depreciation charges

Depreciation charges are aimed at restoring means of production that wear out during use in the production of goods. However, currently in Russia depreciation charges are depreciating due to inflation, which significantly reduces their role as sources of investment. The financial resources received by the national economy from domestic sources of investment are not always sufficient for the successful economic development of the country. This is especially true for countries with developing or transition economies.

investment foreign portfolio regulation

3. DIRECT INVESTMENT

Direct investments are investments made directly into the production and marketing of a specific type of product; investments that ensure ownership of a controlling stake. Direct investments are investments in the construction of economic facilities abroad. They give the right to complete control over property. The form of income generation is entrepreneurial profit. At the moment they dominate over portfolio ones. They give the right to create their own production abroad, join the economy of other countries, and enjoy benefits as a foreign owner. Direct investments are investments in the authorized capital of an economic entity in order to generate income and obtain the rights to participate in the management of this economic entity.

3.1 Foreign direct investment

Foreign direct investment has a significant impact on the entire global economy, and international business is at its core.

From an economic point of view, from the position of firms, this is: securing a stable market for themselves directly or as a springboard for entering world markets of “third countries”; formation of your own “internal market”, certain sectors of which are located in individual countries; inclusion of one’s interest in interstate relations at the regional and broader international level. Direct investment requires foreign control of 10 percent or more of the common stock or "effective voting power" in the management of the enterprise. For some, this is associated only with ownership, a share in the share capital, which can be obtained through: purchasing shares abroad; reinvestment of profits; intercompany loans or intercompany debt.

In addition, there are various non-joint-stock forms that exist and are actively developing, such as subcontracts, management agreements, franchising, licensing transactions, production sharing, etc.

4. PORTFOLIO INVESTMENTS

Portfolio investments - investments in long-term securities formed in the form of a portfolio of securities; small investments that cannot provide their owner with control over the enterprise. Portfolio investments are investments in securities, purchasing shares of enterprises in another country. They prevail in countries where the political and economic environment is unstable. They do not give the right to control property, but provide influence on the enterprise and receipt of income in the form of dividends. Portfolio investments are practically capital invested in stocks, bonds, bills and other types of securities. The emergence and circulation of financial capital are closely related to the functioning of real (i.e. productive) capital.

Thus, investments based on the purpose of investing capital are divided into:

1) real investments;

2) portfolio investments.

Investments are classified by type of ownership. The structure of investments by form is understood as their distribution according to who owns these investments. By type of ownership, investments are divided into:

1) state;

2) municipal;

3) private (investments by citizens);

4) public associations (consumer cooperation, etc.);

5) mixed forms (without foreign capital);

6) foreign;

7) mixed form with foreign participation.

4.1 Portfolio foreign investments

Portfolio foreign investments are a form of capital export by investing it in securities of foreign enterprises, which does not give investors the opportunity to directly control their activities. The share of portfolio investments in the total volume of foreign investments in the early 2000s amounted to 35 - 40%. The total amount of foreign portfolio investment in developing countries alone in 2004 amounted to $86.6 billion.

It is often difficult to draw a clear line between direct and portfolio foreign investment. Portfolio investments are associated with the formation of a portfolio and represent the acquisition of securities and other assets. A portfolio is a collection of various investment values collected together that serve as a tool for achieving a specific investment goal of the investor. The portfolio may include securities of the same type (stocks) or various investment values (stocks, bonds, savings and deposit certificates, certificates of pledge, insurance policy, etc.).

Portfolio investments are associated with the formation of a portfolio and represent the acquisition of securities and other assets. A portfolio is a collection of various investment values collected together that serve as a tool for achieving a specific investment goal of the investor. The portfolio may include securities of the same type (stocks) or various investment values (stocks, bonds, savings and deposit certificates, certificates of pledge, insurance policy, etc.).

5. PRINCIPLES FOR FORMING AN INVESTMENT PORTFOLIO

The principles for forming an investment portfolio are the safety and profitability of investments, their growth, and the liquidity of investments. Let's take a closer look at the concept of liquidity. The liquidity of any financial resource is understood as its ability to participate in the immediate purchase of goods (works, services). The liquidity of investment assets is their ability to quickly and without loss in price turn into cash.

When forming an investment portfolio, you should be guided by the following considerations:

investment security (invulnerability of investments from shocks in the investment capital market),

stability of income,

liquidity of investments, that is, their ability to participate in the immediate purchase of goods (works, services), or quickly and without loss in price to turn into cash.

None of the investment values has all the properties listed above. Therefore, a compromise is inevitable. If the security is safe, the yield will be low, since those who prefer safety will bid high and drive down the yield. The main goal when creating a portfolio is to achieve the most optimal combination between risk and return for the investor. In other words, the appropriate set of investment instruments is designed to reduce the investor’s risk to a minimum and at the same time increase his income to the maximum.

To effectively manage an investment portfolio, a financial manager must use the following principles, which are widely used in world practice when forming an investment portfolio:

The success of investments mainly depends on the correct distribution of funds among types of assets by 94% by choosing the type of investment instruments used (shares of large companies, short-term treasury bills, long-term bonds: etc.); by 4% by choosing specific securities of a given type, by 2% by assessing the moment of purchasing securities. This is explained by the fact that securities of the same type are highly correlated, i.e. If an industry is experiencing a decline, then the investor’s loss does not really depend on whether the securities of one or another company predominate in his portfolio.

The risk of investing in a particular type of security is determined by the likelihood of earnings deviating from expected values. The predicted profit value can be determined based on the processing of statistical data on the dynamics of profit from investments in these securities in the past, and the risk - as the standard deviation from the expected profit.

The overall return and risk of an investment portfolio can change by varying its structure. There are various programs that allow you to design the desired proportion of assets of various types, for example, minimizing risk at a given level of expected profit or maximizing profit at a given level of risk, etc.

The estimates used in compiling the investment portfolio are probabilistic in nature. Construction of a portfolio in accordance with the requirements of classical theory is possible only if a number of factors are present: an established securities market, a certain period of its operation, market statistics, etc.

The formation of an investment portfolio is carried out in several stages:

formulating the goals of its creation and determining their priority (in particular, what is more important - regular receipt of dividends or an increase in the value of assets), setting risk levels, minimum profit, deviation from expected profit, etc.;

choosing a financial company (this can be a domestic or foreign company; when making a decision, you can use a number of criteria: the reputation of the company, its availability, the types of portfolios offered by the company, their profitability, the types of investment instruments used, etc.);

choosing a bank that will maintain an investment account.

The main question when managing a portfolio is how to determine the proportions between securities with different properties. Thus, the main principles of constructing a classic conservative (low-risk) portfolio are: the principle of conservatism, the principle of diversification and the principle of sufficient liquidity.

The principle of conservatism. The ratio between highly reliable and risky shares is maintained in such a way that possible losses from the risky share are overwhelmingly covered by income from reliable assets.

The investment risk, therefore, does not consist in losing part of the principal amount, but only in receiving an insufficiently high income.

Naturally, without taking risks, you cannot count on any super-high incomes. However, practice shows that the vast majority of clients are satisfied with incomes ranging from one to two deposit rates of banks of the highest category of reliability, and do not want to increase income due to a higher degree of risk.

The principle of diversification. Diversification of investments is the basic principle of portfolio investment. The idea of this principle is well illustrated in the old English proverb: do not put all eggs in one basket - “do not put all your eggs in one basket.”

In our language it sounds - do not invest all your money in one paper, no matter how profitable this investment may seem to you. Only such restraint will avoid catastrophic damage in the event of an error.

Diversification reduces risk due to the fact that possible low income on some securities will be offset by high income on other securities. Risk minimization is achieved by including in the securities portfolio a wide range of industries that are not closely related to each other in order to avoid synchronicity of cyclical fluctuations in their business activity. The optimal value is from 8 to 20 different types of securities.

The dispersion of investments occurs both between those active segments that we mentioned and within them. For government short-term bonds and treasury bonds, we are talking about diversification between securities of different series, for corporate securities - between shares of different issuers. Simplified diversification simply consists of dividing funds among several securities without serious analysis.

A sufficient amount of funds in the portfolio allows you to take the next step - to carry out the so-called sectoral and regional diversification.

The principle of industry diversification is to prevent the portfolio from being skewed towards securities of enterprises in the same industry. The fact is that a cataclysm can befall the industry as a whole. For example, a fall in oil prices on the world market can lead to a simultaneous fall in the share prices of all oil refineries, and the fact that your investments will be distributed among various enterprises in this industry will not help you.

The same applies to enterprises in the same region. A simultaneous decline in stock prices may occur due to political instability, strikes, natural disasters, the commissioning of new transport routes that bypass the region, etc. Imagine, for example, that in October 1994 you invested all your funds in shares of various enterprises in Chechnya.

An even more in-depth analysis is possible using serious mathematical tools. Statistical studies show that many stocks rise or fall in price, usually at the same time, although there are no such visible connections between them, such as belonging to the same industry or region. Price changes for other pairs of securities, on the contrary, are in antiphase. Naturally, diversification between the second pair of securities is much more preferable. Correlation analysis methods make it possible, by exploiting this idea, to find the optimal balance between various securities in a portfolio.

The principle of sufficient liquidity. It consists of maintaining the share of quick-selling assets in the portfolio at least at a level sufficient to carry out unexpectedly high-yield transactions and satisfy clients' cash needs. Practice shows that it is more profitable to keep a certain part of the funds in more liquid (even less profitable) securities, but to be able to quickly respond to changes in market conditions and individual profitable offers. In addition, contracts with many clients simply oblige them to keep part of their funds in liquid form.

Income on portfolio investments represents the gross profit on the entire set of securities included in a particular portfolio, taking into account risk. The problem of quantitative correspondence between profit and risk arises, which must be solved promptly in order to constantly improve the structure of already formed portfolios and the formation of new ones, in accordance with the wishes of investors. It must be said that this problem is one of those for which it is possible to quickly find a general solution scheme, but which are practically not completely solved.

When considering creating a portfolio, an investor must determine for himself the parameters that will guide him:

you need to choose the optimal type of portfolio

assess the combination of portfolio risk and income that is acceptable to you and, accordingly, determine the share of the portfolio of securities with different levels of risk and income

determine the initial composition of the portfolio

choose a further portfolio management scheme

CONCLUSION

The investment process plays an important role in the economy of any country. Investment largely determines the economic growth of the state, employment of the population and constitutes an essential element of the base on which the economic development of society is based. Therefore, the problem associated with the effective implementation of investment deserves serious attention. The importance of economic analysis for planning and implementing investment activities can hardly be overestimated. At the same time, preliminary analysis, which is carried out at the stage of development of investment projects and contributes to the adoption of reasonable and informed management decisions, is of particular importance.

The main direction of the preliminary analysis is to determine indicators of the possible economic efficiency of investments, i.e. return on capital investments provided for by the project. As a rule, the calculations take into account the time aspect of the value of money.

As a result, it should be noted that currently investments should primarily be directed to the development of production, invested in production assets and other assets. Therefore, when implementing an economic growth strategy, the Government must create the conditions and management mechanisms necessary to offer long-term “cheap money” for the development of production and the economy as a whole.

The emerging Russian innovation system should not only ensure the establishment of a knowledge-based economy, but also promote Russia's participation as an equal partner in the global innovation process. Despite the fact that to date, innovative activity has not yet become the basis of the country’s economic development, over the last decade real prerequisites have been created for the transition to an innovative path of development. Based on the results of the analysis of factors influencing the investment climate and the current political and economic state of Russia, it seems possible to carry out the following measures to improve the investment climate in Russia: ensuring political stability and consistency of reforms in the country, taking measures to further reduce inflation, tax incentives for investment activity, development of the stock market and stimulation of the preservation of Russian capital in the country.

In this essay, we looked at what investments are and what types of them are found in economies. We learned the essence of investment, sources of investment and their formation. Direct investments and their importance, and portfolio investments with their detailed description of the concept, composition and use of a portfolio were considered in most detail.

In conclusion, I would like to note that investments are a complex mechanism that can significantly increase the economic potential of the state. Therefore, the success achieved in this area will largely predetermine the successful implementation of socio-economic reforms and the economic development of the country as a whole.

BIBLIOGRAPHY

1. Blokhina T. Institutional investment market: state and prospects // Economic Issues, 2003, No. 1.

2. Large economic dictionary. M.: Book World. 2008 - 860.

3. Balabanov I.T. / Financial management: Textbook. manual - M.: Finance and Statistics, 2000.

4. Birman G., Schmidt S. Economic analysis of investment projects. - M.: Banks and exchanges, UNITY, 2001.

5. Ramilova A. Direct foreign investments as an object of state regulation // Russian Economic Journal, 2003, No. 7.

6. Serov V.M., Ivanovsky V.S., Kozlovsky A.V. Investment management: Textbook for Universities / State University of Education - M.: ZAO “Finstatinform”, 2002 - 175 p.

7. Urinson Y. “On measures to revive the investment process in Russia” // Questions of Economics, 2001, No. 1.

8. Cherkasov V.E. International investments. Educational and practical manual. - M.: Delo, 2001. - 160 p. Sharp W., Alexander G., Bailey J. Investments: trans. from English - M.: INFRA-M, 1999- 1028 p.

9. Khodov L. On the distinction between direct and portfolio investments. - M., REJ, No. 2, 2006.

10. Kornyukhina N.B. Sources of investment resources in Russia. // EKO.- 2001.- No. 1.- P. 76.

Posted on Allbest.ru