What does modern investing actually mean?
Modern investment is becoming easier and easier in times of the Internet and many new forms of investment.
However, the criteria are not clearly defined, so that you should first determine individually what “modern investment” means and what not. A definition is possible for example according to the plant form or also the plant goal and/or the plant partner, in order to call only some examples.
Fact is that modern invest usually clearly higher net yields makes possible, than a classical investment of funds with a bank. Savings book, time deposits and Co. have served their time for many years and offer only minimal interest, with which not even an inflation compensation can be obtained.
Modern investing nowadays means the willingness to take a little more risk but also the anticipation of significantly more profit.
How can modern investing be made?
Modern investing can mean, for example, concentrating on equity funds and focusing on the so-called ETF (exchange-traded funds).
The advantage is that there are virtually no administrative costs and there is no need to interact with banks. In other words, the investment is more direct and less money is lost. Equity funds or ETFs focus on risk diversification, which is why they are not individual shares, but always a whole bundle of securities from different companies.
The composition corresponds to the index shown and can change again and again. Statistics show that investing in equities has been one of the most lucrative forms of investment in recent years. However, this does not (unfortunately) mean that forecasts for a rosy future can be derived from this. There is a certain risk with both ETFs and traditional equity funds, although one could rightly speak of a modern investment.
A further option that can be used to make modern investments on the face of it is to invest in tangible assets. If you follow the press, you will always hear about solid profits that can be achieved by buying wristwatches, vintage cars, designer furniture, works of art or even old wine and records.
The individual cases mentioned are indeed astonishing, but the lists naturally do not take into account the many products whose value has stagnated or – in most cases – fallen. Those who are particularly well versed in a collector’s field can take the risk, especially since most of the items mentioned also have an emotional value and a practical use – but on closer inspection, this rather old-fashioned form of investment can hardly be regarded as a “modern investment”.
But perhaps “modern investment” only means avoiding direct contact with the bank’s employees. Depending on previous habits, classic online banking and the purchase of traditional financial products via the Internet already represent a modern and contemporary form of investment. One can see from this that a definition can be both narrow and in a broader sense and is always regarded as correct by certain groups of people.
Modern investing through Crowdfunding and Crowdinvesting
However, what certainly falls under the heading “modern investing” are the new opportunities in crowdfunding and crowd investing. We are talking about the possibility of a direct investment in a company or a project and achieving high returns. Crowdinvesting can also be translated as “investment in a swarm” and works in such a way that individual investors often place smaller sums of several hundred to several thousand euros.
Investments are made by granting a subordinated loan at clearly defined conditions and with fixed maturities. The offered interest lies completely substantially over those, which are offered by the banks, the risks are however likewise a little higher.
Crowd investing means that a company or project is provided with equity. Depending on the provider, both the seriousness of the entrepreneur and the chances of success of the project are checked before any investment is possible. Often, however, these are already established and successful companies on the market who want to minimize their own risk in a new project and avoid the expensive conditions of a bank.
This is why a project is not asked for a classic loan or corporate loan, but presented to a broad mass of investors. If the argument is sound and convincing, it is almost certain that the desired amount will be raised quickly, especially as securities usually also exist.
A good example of successful crowd investing can be found in the maritime sector. Here the investment in ships is made possible that have a clearly defined steel value that is achievable in any case. Furthermore, investors profit from every voyage of the ship and invest in a growth market that is also sustainable.
Modern investment in this case means that an established industry is supplied with fresh money.
Modern investment and sustainability
When talking about modern investing, the term sustainability always appears.
In fact, there are some connections that already result from the fact that modern investments often take place without the participation of banks and thus no so-called “fees” flow. In addition, some banks are also involved in the financing of arms deals and other transactions that are not considered sustainable.
If you want to invest in a modern way, you should also make sure that your money goes to the right address or at least to the right industry. In this way, something can also be done in social terms and the money makes a contribution to a better and more livable world.
This is by no means only possible through investments that are explicitly described as “ecological” or “sustainable”, but through prior reflection and precise information about what happens with the money and what the business model consists of.
If, for example, ships are now more environmentally friendly and goods are transported by ship and not by air, this can also be regarded as modern and sustainable – to name just one example.