A comprehensive guide for Angel Funding...

Investment Opportunities

Going as per the word investment is declared in the dictionaries, it means purchase of a particular commodity with an expectation of profitable returns generating from the same. On the other side, it may also mean buying a business or a commodity keeping in mind the prospect of future durability or improved gains. There are several ups and downs as well as risks involved in investment opportunities and apt dealing is always important to have successful returns. Investment is a very relative topic. There is no particular domain where this particular venture may be deemed applicable or inapplicable. Today, there are innumerable amount of investment opportunities in all domains. All one needs to do is a thorough market research and use opportunities accordingly. A proper investment opportunity if understood properly may produce sweet results for a long period of time but because there are innumerable number of such opportunities in every field, people are often hoodwinked and find it difficult to select the proper investment opportunity which may sometimes be disastrous. But there are several of the investments that are risk free. These may be offered by respective governments and are mostly limited. In most of the cases, investment opportunities include handling of huge sums of money, so understanding where and when to invest often decides the outcome.

What are various investment opportunities?

As it has been already mentioned, there are innumerable investment opportunities out there in the market. This is exactly why knowing about all the possibilities and types of market openings is important which also plays a trivial role in deciding the final success of the opportunities. The various kinds of investments can be basically categorised primarily in seven types namely cash investments, debt securities, stocks, mutual funds, derivatives, commodities and real estate. The cash investments include savings bank accounts, certificates of Deposits, treasury bills etc. These investment opportunities provide low rates of interest and may be affected by the impact of inflation or recession. The second factor of debt security is a more risk free investment and provides periodic payments and possible capital appreciation returns at maturity. Stocks are risky business even though they make you part owner of profits generated by a company. Mutual fund investment opportunity involves paying a manager to select securities and one need not bother with tracking the investment. It’s generally risk free. Next are the derivatives. This may be in the form of futures, options and swaps. They are derived from the value of the underlying assets as bonds, assets; equities etc and minimize the risk of loss from fluctuations. The next form of investment opportunity is associated with high risk and high reward. These are commodities and still lack in standardization. This is one field where in depth knowledge and specialized analysis of the market condition is required or the going gets very difficult. Last but arguably the most profitable among these is the real estate investment opportunity. It requires long term commitment of funds and are generated through rentals, lease or sale. Though the investment is a long shot one, it involves huge profits.

Angel Investment as an Investment Opportunity

Angel investment in most cases is private funding of a business in a problematic situation. This is however very different from a pooled funding as most angel investment is handled on individual basis. The investment opportunity involves high stakes but the gains from it are enormous almost unachievable in any other form of investment. Therefore, angel investment is all the more popular. Generally, angel investors expect a return of ten times the original limit within a period of five years from acquiring. It is a high value investment opportunity and therefore involves a well defined exit strategy when the time is ripe. Therefore a lot of issues, conditions, returns, in depth understanding of the business etc need to be considered and decided upon before any step is taken.

Advantages of Angel Investment Opportunities

Even though most people consider angel investment to be a rather difficult and wealthy venture, there are several good advantages associated with it. The most important advantage of this investment opportunity is that it generates a huge amount of returns. Secondly, they involve huge amount of investments hence there are always exit strategies to secure the investor of loss even if he does not gain from it. On the other hand, because the money used or invested is their own, there is always a chance to negotiate and opt for a more flexible deal especially for early stage business developers. Thirdly, the people who take up this kind of investment opportunity are mostly experienced people who have dealt with investment and marketing for a long time. Therefore, they not only bring financial aid but an immense load of practical experience into the venture that was otherwise unavailable. Fourthly, a lot of angel investor help start up businesses and local communities in setting up business on their own. Since these include comparatively small amounts of money in the rates of less than 500000 dollars, the ability to raise capital increases. Fifthly, this investment opportunity does not require high monthly fees. Therefore outstanding payment rates such as bank loans and credit cards are no required. Thus people can turn their attention totally to developing business other than worrying about repayments. Lastly, today angel investors are available everywhere so there is no chance of not finding them in local and worldwide markets.

Choose the Best Investment Opportunities

Now that we have discussed the basic understanding of an investment, different types of investment opportunity as well as different aspects of angel investment, we might as well move on to how we can choose the most suitable investment opportunity so as to make assured profits. There may be several opportunities coming our way. Investment schemes are the way to do this; these documents try to explain best about an investment and the related factors. Investment schemes are for various investments in small businesses or enterprise, for education, housing, life insurance and others. It depends on the investor and his priorities to decide and use the investment opportunities to the best of their ability and understanding. The opportunities may also differ from place to place and time to time which should be understood properly before making a decision.