How to generate capital

Starting point

  • What do you have right now:
  • Surplus of income?
  • Some available fund, which you would like to raise?
  • Wish to make each cent you have exceeding to work for you?
  • If you answer to any of those questions YES, let’s go futher. If you answered „no“, do not spend time to read this study.


  • Today there are hundreds of different opportunities to invest:
    • Stock exchange (shares, bonds, securities, derivatives etc)
    • Deposits or fund share acquisition (pension deposit, bank deposit, insurances, mutual funds etc)
    • Loans (lending-investors unions or just to friends)
    • Crowdfunding platforms (debt-platforms, equity platforms etc)
    • Real Estate
    • Commoditeis (gold, silver, oil or corn futures)

Where we are?

  • There could be different types of investors, who read this study, but all of you want to invest risk-free and with a maximum margin of profit.
  • Those who have expirience of being investor know, that risk-free and maximum margin rate principals eliminate each other… If only not…
  • This „If only not“ consider „PERIOD of INVESMENT“
    • There is nothing more stable than instable economic development
    • „Rise and Fall“ always guarantees smaller flactuation in the end of the cycle.

Current econimocal situation?

  • There is no any rule in today economy, which could be proven 100%
  • Negative interest rate for deposit, was missing in all books I have ever read during my master degree study in enterprice finance and accounting
  • „Bailout“s and QM1,2…, when state banks started printing money to restore economy is something, which behind economy
  • How we can estimate current situation if states goverments and central banks can not foresee it?
  • It means that there is no any right forecast for economy either short-term and long-term, things are changing too rapidly nowadays and globalization puts additional influenceIn todays economical situation personal finance and investment planning is crucial how eliminate high-risk activity

Low risk activity

  • Low risk activity for every investor is something personal Experienced investor could invest to BOND to reduce risks (Starting investor deposits money to bank account
    • Parents invest to real estate property for children
    • Children invest to real estate property for parents

    All of them acting conservatively and aiming to long term profit and saving available funds

Most transparent investment?

Most transparent investment is the investment which you understand and can easily evaluate:

  • If you are experienced investor, you can read balances and reports of big international companies (like Facebook or Apple)
  • If you are starting investor you can count the deposit rate level and state guarantee of some amount, for example in Estonia 50 000 € against bank fraud If you invest to real estate property for you relatives you should consider if it is located in the right place and condition is good enough for living.

How to invest?

  • If there would be a simple answer to this question you would never have to work, but only invest.
  • The only important guideline in the investment should be always considered, that this is a process and sometimes long-term process.
  • To create a portfolio you have to take care about right strategy for investment: never mix short-term investments and long-term investments. Mixing of those two strategies lead to losses.
  • Evaluate properly amount of available cash surplus, which you can invest and never invest last cash to long-term projects.

Stick to chosen strategy

  • Before investment project beginning select the strategy based on your available funds and expectation.
  • Speculation is not the best friend to long-term investment, because you can miss the right long-term asset switching to its short-term benefits
  • Targeting to investment project result is one of the most important points in the phase of project evaluation
  • Consider profit and risk ratio conservatively

What type of investor you are?

  • Based on answers to above mentioned questions you will understand what kind of investor you are
  • What would be the safe investment for you personally?
  • If you have decided for yourself what kind of investor you are, you should evaluate how much money you are ready to invest into the future?Next study gives overview of investment opportunities for different types of investors.
  • Financial figures of different investment types
  • Some explanation of terminlogy of investor, which is used on this website Comparison of different investment project results