The Process Of Investment Analysis

Investment analysis is a tool of financial management and is used for management decisions regarding the use of funds. Investment implies a long-term investment funds to improve the welfare of investors in the future. Efficient use of investment can be determined, making expressed in terms of cash resources and indicators of their use. The process of such comparison is called an investment analysis. When analyzing the efficiency of investments following tasks: – Define feasibility investments funds – finding areas of investment investments with the highest performance – to determine the most effective portfolio of invested funds. In all cases, the main purpose of investment analysis is to detect and study decisions about investing money, which should take the owner. By type of facility investment all investments are divided into investment in financial, real and intangible assets. Direct investment analysis carried out as follows.

First, make a list of alternative investments. Next, prepare for each cash flow forecast. Then calculates the barrier rates, the level of reinvestment and the parameters of the investment project. To calculate the parameters of a modern financial management uses three mathematical models. Each of them allows us to define the following parameters: the amount yield, yield index, and payback time of investments. Data for these calculations are also subjected to the procedure of prediction. The most accurate is considered a third model, which includes parameters such as cash flows, hurdle rate and the level of investment. After this, perform the calculation of cash flows for each period.

The next step is to analyze the sensitivity of the market and assessment of qualitative factors affecting the changes in the investment market. Next, assess and compare the results of all alternatives. Also assess the liquidity of investment projects and their ability to pay, review payback period of investment of capital. In the end, produce a selection of the most effective investments that could generate stable returns to investors.

Market Investment Consulting

With the adoption in Ukraine of a new Tax Code and specialists working in the investment consulting market, it remains only to thank the government for their actions. Azarov citizen could do what the proved incapable of even the global financial crisis – to ensure the rapid changing market investment consultants. Rather, it came qualitatively complement the crisis started it. Namely, to produce complete reformatting of the Ukrainian market of professionals providing assistance to companies to conduct pre-competitive research and development of the project pre-investment documentation (business plans, feasibility studies, memoranda). We are not talking about the Big Four firms, or powerful investment – industrial groups. They live by their rules.

But here in relation to local markets, with their heterogeneous audience members, a change business environment is directly affected. The main feature of the local markets – in the absence of the network capital and the high proportion of small companies, independent consultants and other "free shooters". Audience investment and financial advisers rather heterogeneous. Among them are professionals with extensive practical experience, made the decision to conduct business independently. There are yesterday's students finance higher education institutions There is also a former mediocre project managers, fell during the crisis of the holder or, rather, is simply not capable of an enterprise system to cover up their mediocrity with the phrase "I want to work for themselves." All such local investment advisors in my mind are united by one thing. Their activities are not perceived as a business process, while proudly call it their "own business".

Russia Can Develop Without Inflow Of Foreign Investments

Russia’s economy is able to recover their funds for domestic investors. Meanwhile, the benefits and positive results from many foreign investments is very doubtful. This opinion was expressed Rosbalt Elena Rumyantsev, professor of finance and industrial economy of the Russian Academy of State Service under the President of Russia. “The Russian Federation will be able to stand up from a long restructuring and many mistakes reformers who are restricted from foreign investment. Otherwise, for example, a company like ROSNEFT could be the main sponsor of the Olympic Games in Sochi? “, – The expert said. Large investments overseas investors, according to experts, is not planned. “A development of depth of Sakhalin – not good for Russia – she explains. – Manufacture of food products through the installation for domestic refineries and Enterprise outdated equipment and technology of foreign investors leads to a significant reduction in the release of quality food for the population.

” According to Rumyantseva, due to very low efficiency, which is carried out to date, the state investment policies, Russia, according to UNCTAD, a country that receives foreign direct investment more than anyone else. The main ways to attract them is the registration in Russia of those enterprises which operate entirely by foreign capital, by reason of joint ventures or through the sale of various foreign firms to large blocks of shares owned Russian joint stock companies. Another way to attract foreign direct investment at the expense of establishing free economic zones in certain regions of the country. Another way – the basis of concessions and agreements on the division of products. However, the latter method is not widespread in Russia, while in others it is very popularity. To a lesser extent than in other countries, in Russia the free economic zones. The main objectives of the State Government in this regard, according to experts, is to prohibit the exportation of money from Russia, the maintenance of domestic and not foreign, capital, and the fight against corruption in the investment sector, hurt by a significant and identical to the size of the consolidated budget.