GENESIS, ECONOMIC NATURE AND CLASSIFICATION OF INVESTMENTS

This article examines the economic substance – these are long-term investments that allow creating an object the operation of which is expected to bring material or social benefit.

It is emphasized that investment is the capital invested in creation, acquisition or improvement (reduction, refinement) of business objects or other activities for their subsequent long-term operation (in order to obtain material or social benefits). Any effective implementation of investment activity requires having a clear idea not only about the economic nature of investment, but also about existing forms and types of investments and their classification. In this respect the article analyzes the basic features according to which investments can be classified. Investments are classified into real and financial by the investment objects; into short-term, medium-term and long-term on terms of operation of the facility investment; according to the methods of investment – into direct and indirect; by the origin of investment – into domestic and foreign; by ownership of investment – into private, public and mixed; by the focus on the investment process – into internal and external.

The article gives the definition of hoarding investment: it is investment of funds in the purchase of precious metals. A distinctive feature of these investments is the lack of current material effect after their implementation. The effect can usually be obtained only in the case of sale of these objects at a higher price. However, hoarding investment is a very reliable form of capital investment because in different periods of economic instability gold is always in high demand, and during the stagnation period of some or all sectors of the economy, gold is a liquid asset.

The author offers efficient methods to regulate investment activities for economic recovery and attraction of domestic and foreign investors into the economy of the region.