Investment Articles

Foreign direct investments have played an important role in Brazil’s economic development. FDI inflows into the country are mainly attracted by its big domestic market and the liberalized economy thanks to fair government policies. Most investments in Brazil have been made with a bias on the technological aspects of the economy. However, the service sector has attracted foreign investments too. The Brazilian FDI regime has remained liberal and has been plausible in its sum financial output for its economy. Brazil investment opportunities have a minor number of horizontal reservations or limitations.

Brazil investment opportunities flourish in the various sectors of the economy; production as well as the service industries. With an economy estimated at $1.3 trillion, foreign direct investments are crucial in financing the country’s payment balance due to investors taking out money from the capital markets and the slow recovery from the global recession.

Brazil’s stock of direct foreign investments stands at $318.5 billion, according to 2009 figures. This shows a marked increase from the total FDI revenue from the previous year. Brazil’s GDP stands at BRR 1,359.71 billion. In the year 2008, as the close of that year, the country’s GDP stood at BRR 1,362.23 billion; a marked fall given the global recession. This represents a fall of 0.18%. Brazil’s GDP for the year is expected to stand at BRR 1,434.44 billion, about five percentage point increase from the year 2009.

As at January 2010, the country’s FDI totaled US$2.41 billion. This was reflective of an annual growth rate of 63.9 per cent, the highest since 2000. Out of all these foreign investments at the beginning of this year, a majority of them were in the service sector. FDI figures for the first month 2010 were also higher than those posted in 2006 in the same month. The retail sector took US$364 million, auto manufacture US$258 million, transport US$248million and the metallurgy sector US$232 million.

In the year 2006, Brazil’s FDI peaked at US18.78 billion, the highest since 2001 with US$22.46 billion. This was still higher than had been recorded in the year 2005 with US$15.19 billion. Even so, the country’s highest monthly FDI statistic was in 2007, June with the country getting $10.3 billion. Brazil is the world’s tenth largest economy and Latin America’s largest. Its economy is expected to top the five biggest in the world in the coming decades. Its GDP per capital stands at $10,200.

Invest in Brazil is a rich information resource for the international investors. If you’re looking to promote your Brazilian investment opportunity to international investors, there is a range of advertising opportunities available on http://www.investinbrazil.biz.

Foreign direct investments have played an important role in Brazil’s economic development. FDI inflows into the country are mainly attracted by its big domestic market and the liberalized economy thanks to fair government policies. Most investments in Brazil have been made with a bias on the technological aspects of the economy. However, the service sector has attracted foreign investments too. The Brazilian FDI regime has remained liberal and has been plausible in its sum financial output for its economy. Brazil investment opportunities have a minor number of horizontal reservations or limitations.

Brazil investment opportunities flourish in the various sectors of the economy; production as well as the service industries. With an economy estimated at $1.3 trillion, foreign direct investments are crucial in financing the country’s payment balance due to investors taking out money from the capital markets and the slow recovery from the global recession.

Brazil’s stock of direct foreign investments stands at $318.5 billion, according to 2009 figures. This shows a marked increase from the total FDI revenue from the previous year. Brazil’s GDP stands at BRR 1,359.71 billion. In the year 2008, as the close of that year, the country’s GDP stood at BRR 1,362.23 billion; a marked fall given the global recession. This represents a fall of 0.18%. Brazil’s GDP for the year is expected to stand at BRR 1,434.44 billion, about five percentage point increase from the year 2009.

As at January 2010, the country’s FDI totaled US$2.41 billion. This was reflective of an annual growth rate of 63.9 per cent, the highest since 2000. Out of all these foreign investments at the beginning of this year, a majority of them were in the service sector. FDI figures for the first month 2010 were also higher than those posted in 2006 in the same month. The retail sector took US$364 million, auto manufacture US$258 million, transport US$248million and the metallurgy sector US$232 million.

In the year 2006, Brazil’s FDI peaked at US18.78 billion, the highest since 2001 with US$22.46 billion. This was still higher than had been recorded in the year 2005 with US$15.19 billion. Even so, the country’s highest monthly FDI statistic was in 2007, June with the country getting $10.3 billion. Brazil is the world’s tenth largest economy and Latin America’s largest. Its economy is expected to top the five biggest in the world in the coming decades. Its GDP per capital stands at $10,200.

Invest in Brazil is a rich information resource for the international investors. If you’re looking to promote your Brazilian investment opportunity to international investors, there is a range of advertising opportunities available on http://www.investinbrazil.biz.

Aspen Woolf explains why Brazil will play a key role in their future.

Brazil. The place is booming: a fast-growing consumer market, investment-grade status, huge foreign reserves, surging commodity exports and agricultural productivity to rival the US. Foreign investment has tripled in a decade.

Brazil was one of the last countries to fall into recession and one of the first to return to growth. Despite global financial and economic crises the economy contracted by just 0.3% last year, while its stock market rose a staggering 83% and the real currency 33%. The IMF forecasts the economy to grow by 5.5% this year and 4.1% next year. This year will see a surge of foreign investment – $45 billion. That’s up 74% on last year.

So why is Brazil considered such a good investment? Well, last year, Brazil became a middle class country. The new middle classes are now consumers… and they’re spending. For the first time in the country’s history the domestic population now has the chance and confidence to take mortgages. The current total mortgage value in Brazil represents only 2% of the GDP. To put it into perspective, the same number in the UK is a whopping 75%. The Brazilian government now forecasts that the Brazilian mortgage market will grow 600% by 2014, reaching 12% of the GDP. All of a sudden, Brazilians are racing to buy property. Property prices are starting to see stratospheric growth, especially in the northeast. As credit continues to open up, the Brazilian consumer will be a force to be reckoned with.

Brazil is energy independent. The Tupi and Lara fields, situated 800km off the Brazilian coast, are home to America’s largest discovery of crude oil deposits since the Cantarell fields were found in Mexico in 1976. The fields in Brazil have huge potential and are estimated to hold up to 10 billion barrels of oil. The Financial Times refers to the reserves as “Brazil’s ticket to the world’s VIP energy club”.

In short, Brazil suddenly seems to have made an entrance onto the world stage. Its arrival was symbolically marked last year by the award of the 2016 Olympics to Rio de Janeiro; two years earlier, Brazil will host football’s World Cup. You should have exposure to Brazil in your portfolio.

Aspen Woolf
http://www.aspenwoolf.co.uk

Investments can be classified in many forms. Here are 6 classifications of investments:

Securities vs Properties

Securities are related to ownership of a business or other assets. Bonds, shares and options are some of the examples of securities. Meanwhile, properties can be in the form of real properties or tangible personal properties. Real properties refer to land, building and and all immovable improvements on land. Tangible personal properties include gold, antiques and other valuable collectibles.

Direct vs Indirect

Direct investments shall mean acts of acquiring stakes directly on securities or properties. For instance, buying bonds, shares and real properties to gain profits or to preserve values. An indirect investment, on the other hand, refers to an investment made in a portfolio. Purchasing mutual funds can be considered as indirect investments as you do not invest directly to the security of a company.

Debts vs Equities vs Derivatives

Debt shall mean invest your capital as a loan to earn interest. You may expect your capital plus interest to be repaid to you upon maturity. Purchasing a bond is a clear example of this.Equity refers to ownership of a business or assets. Buying ordinary share is the common type of equity. Derivative is quite different from debt and equity. The value of derivative is obtained from the underlying assets. You are allowed to buy or sell a security or asset at a specific price in a specific period of time. The example of a derivative is an option.

Low Risk vs High Risk

The higher the potential of earning by an investment vehicle, the higher its risk and vice versa. That is why a bond is considered a low risk investment, while a stock is generally related to high risk.

Short Term vs Long Term

A short term investment usually matures within a year. A long term investment, on the other hand, refers to longer period of maturity or even without maturity.

Domestic vs Foreign

Domestic investment shall mean investing your capital within your own country, while, with the aid of technologies, foreign investment has been made easy for those who intend to invest overseas via online trading.

Ng Chung Mun is an expert in life planning, specifically in individual risks management. For more on Different Types of Investments, visit http://www.101lifeplanning.com/investment/what-are-the-different-types-of-investments.php

With the release of the simplified compendium on foreign direct investment (FDI), several processes on FDI and associated routes of investment too are being ratified with a view to expedite the process of inflows into India.

The overseas Indian investors too would find it simpler to access nodal bodies and invest in India. However, a note of caution – the Reserve Bank of India too is attempting to regularize certain sections in Foreign Exchange Management Act (FEMA) which also allow NRIs, routes to invest in India. Its contention is that NRIs tend to invest much more than the cap allowed in the sectors through these other routes, thereby exceeding allowed limits for FDI. The government may also remove the liberties provided to NRIs in sectors such as aviation, real estate etc.

Also, more reforms-to make investing in India a simpler process-such as FDI in multi-brand retail, defense production, agriculture etc are. In the discussion stage and the government intends to bring out concrete policies in this direction. Proposals can also be sent to DIPP online. This facility will enable all overseas investors to speed up their investment proposals.

Significantly, as per the latest FDI estimates released by Department of Industrial Policy and Promotion (DIPP), the government nodal agency, the non-resident Indians (NRIs) have contributed FDI inflows worth about US$ 41.78 million in December 2009 through the automatic route, almost 2.71 per cent of the total FDI inflows in the same month. Total NRI FDI inflows through the period April-December 2009-10 stood at US$ 320.05 million.

According to DIPP, Mastek Ltd., Wire Wireless (i) Ltd, Orbit Corporation Ltd and Bang Overseas Ltd were some of the Indian companies that received NRI contributions through the automatic route in December 2009. Meanwhile, Jones Lang LaSalle Meghraj, a property advisory firm, remarked in its March global market perspective report, that the previous two months saw high networth individuals (HNIs) as new investors in Indian real estate. Many wealth managers such as Barclays recommend that banking, infrastructure and real estate would be major avenues for foreign investment in 2010. Continued flow of foreign capital in the form of FDI, FII investments, NRI remittances and export earnings are hence expected to continue strengthening of the rupee in 2010.

The states of Karnataka and Gujarat are now preparing for major events to be held for attracting investments into the State for different investment sectors. These states are extending all cooperation to investors through their Global Investor Meet in June 2010 and Golden Jubilee celebrations starting May, respectively. These events are expected to garner major inflows from investors, both domestic as well as overseas.

Harjeet is an Indian – born mass-market novelist, who covers the world internet related topics. He writes columns and articles for various websites and internet journals in the domain of Indian economy and fdi india.

A common question is whether it is necessary to cash in all your investments when you emigrate to Australia. The answer is that it is not necessary – but the tax rules in Australia might make it sensible to do so.

It is important to be aware of the following tax implications:

Any dividends from shares and distributions from unit trusts will be liable for income tax in the UK. You will still have a personal allowance even when you are no longer resident here.

The investment income will also be taxed in Australia but any income tax paid in the UK can be offset to avoid double taxation.

Non-residents do not pay UK capital gain tax as long as they remain abroad for at least 5 complete tax years. A good tip might be to delay selling an investment until at least the 6 April following your departure from the UK.

Australian capital gains tax is payable only on the increase in value between arriving in Australia and when the investment is sold. It is therefore important to get a written valuation very close to the date of departure. The amount of capital gains tax payable depends on when the sales takes place so professional advice is important.

Private company shares are subject to separate rules and professional advice is very important.

This is a measure to discourage Australians from investing in foreign investments in order to shelter income from income tax. It subjects investments, which accumulate over time but do not actually pay an income on a regular basis, to income tax. The rules cover Foreign Investment Funds (FIFs) such as shares and mutual funds (e.g. Unit Trusts) as well as Foreign Life Policies (FLPs). UK personal pension funds are considered to be FIFs and are therefore affected but employer sponsored pensions are not affected.

Tax is charged at your marginal rate on any increase in value between 30 June in the current year and 30 June in the previous year.

Timing of a disposal is important as the liability to this tax is only on assets held on 30 June.

A high earner in Australia could be paying tax on foreign investment funds at 46.5% and probably would not want to continue holding such an investment.

Life assurance policies and investment bonds can also be liable to another Australian tax, known as s26AH, when they are encashed.

There is no inheritance tax in Australia. However, UK domiciled individuals are liable to inheritance tax in the UK on their worldwide assets. It is a complicated and lengthy process to change your domicile from the UK to Australia, and owning assets here can make it more difficult.

Currently the rate of UK inheritance tax is 40% on worldwide assets above the annual allowance (£325,000 in 2009/2010). No tax is payable on transfers between spouses and civil partners.

Mike Wilson is a director of Scottsdale Consulting Ltd, having entered Financial Services in 1985 he specialises in pensions and investments as well as expat services and QROPS schemes. He has a wealth of experience in advising clients and in training other financial advisers.

The Global Investor Program (GIP) was created by Singapore’s Economic Development Board (EDB) to encourage investment in-flows, economic growth and employment. Under the GIP, investors have different options for investing into industries in biomedical sciences, clean energy, infocomms and media, among others.

With the program’s extensive provisions and options, entrepreneurs are able to invest in the Singapore economy hassle-free.

Investment and Industry Options

Investors may choose to invest different amounts, which are categorized as outlined below:

(i) Option A: Invest at least SGD 1 million in a new business startup or expansion of an existing business operation
(ii) Option B: Invest at least SGD 1.5 million in a new business startup, expansion of an existing operation or a GIP-approved fund
(iii) Option C: Invest at least SGD 2 million in a new business startup, expansion of an existing operation or a GIP-approved fund

Entrepreneurs can undertake Singapore company Incorporation within a range of business sectors, as listed below:

(i) Biomedical sciences (healthcare services, medical technology, pharmaceuticals & biotechnology)
(ii) Clean energy
(iii) Educational & professional services
(iv) Electronics (electronics components, electronics systems, semiconductors)
(v) Energy, chemicals & engineering services
(vi) Environment technology
(vii) Infocomms & Media (IT/computing & e-business, media and digital entertainment, telecomunications)
(viii) International organizations, non-government organizations & philanthropy
(ix) Lifestyle & sports (visual arts, performing arts, sports)
(x) Logistics
(xi) New technologies (intelligent systems, nanotechnology, new technology industries)
(xii) Precision engineering (machinery & systems, PMC/printing & packaging)
(xiii) Transport engineering (aerospace, marine/land/oil & gas)

Provisions for Entrepreneurs’ Family

An entrepreneur who incorporates a company in Singapore via the program gains eligibility for their spouse and children (below 21 years old) to apply for Singapore Permanent Residence under the investor’s own residence application. Male dependents will then be liable for Singapore National Service.

An investor’s unmarried children over 21 years old are eligible to apply for the renewable 5-year Long Term Visit Pass, subject to the investor’s re-entry permit validity.

Eligibility for Application

Entrepreneurs and senior corporate managers may also take advantage of the GIP. Applicants with an entrepreneurial and/or business track record are required to have the following:

(i) At least 3 years of entrepreneurial track record with audited financial statements
(ii) An annual turnover of at least SGD 10 million in the most recent year and an average annual turnover of at least SGD 10 million over the last 3 years
(iii) Share ownership and substantial role in company operations and profitability

Senior corporate managers who wish to apply for the GIP may do so as well, provided they possess the following:

(i) At least 10 years of corporate management experience
(ii) A current C-level management role in the company, i.e. Chairman, CEO, CFO, CTO
(iii) Current company turnover of at least SGD 100 million

Senior corporate managers are also required to choose Option A for the GIP application.

With its aim to attract international entrepreneurs to undertake Singapore company incorporation, the Global Investor Program provides entrepreneurs an opportunity to tap into Singapore’s robust economy and enjoy its business-friendly practices and incentives.

The country’s impressive economic track record coupled with its policies to stimulate business creation and growth helps investors see positive returns on their investments.

Healy Consultants is a leading corporate services firm that assists entrepreneurs and investors with availing of global investment opportunities. The firm provides a range of services for foreign investment and Singapore company incorporation. More information on company incorporation can be found by visiting http://www.healyconsultants.com

Be afraid if you own long term bonds or treasuries. The bond market is getting ready to implode due to Washington’s unquenchable thirst for debt.

Say goodbye to the “good ole days” of high bond income and say hello to higher interest rates and falling bond prices. The bond market is getting ready to get squashed like a fat bug and you don’t want to be nowhere around when that happens.

Why is the bond market crashing and burning? Simple. Washington is running up record budget deficits–$1.6 trillion in 2010– and no one want’s to buy America’s debt-leveraged securities any more. In the last treasury auction, mountains of notes went unsold. The rest of the world has wised up to the fact that the “emperor has no clothes on” and America is no longer the financial super power it once was. Foreign governments and institutions are pulling back from investing in America and that is having a dire impact on the bond prices.

Without the influx of foreign investment, America cannot finance its deficits. That puts more upward pressure on interest rates. As interest rates soar bond prices drop like a rock. The only thing holding back a complete collapse of the bond market right now is that the Fed Chairman is acting like the little dutch kid plugging the hole in the dike with his finger to hold back the onrush of water. The Fed is just forestalling the inevitable because this collapse is going to happen. It is just a matter of time.

So as an individual investor what should you be doing right now?

Getting out of the long term bond market as quickly as you can. In the next couple of months the bond market is going to be a wasteland. Don’t get left behind holding the bag. Escape while you can. There is no surviving the cataclysm that is about to happen, if you hold long term bonds.

George Stark is an experienced business analyst, consultant and writer who holds an MBA degree. For latest insights on stock trading and other investment tips. Visit http://www.stocktradingclearinghouse.com

The best investment guide would cover investment options and investment strategy. This investment guide would be complete and start with basic financial concepts and expand to include the entire universe of investments. That’s a tall order, so let’s just start with a simple version, and talk about all of the investments in the world in plain English.

Your best investment is a good, complete investment guide. I’ve been tuned in to the world of investing for 35 years and have read over 100 books on investments and investing. Most of them center on the stock market or some form of investment technique or get-rich-quick scheme. Many are time sensitive and out of date by the time you read them. Many tell you how to invest money like the author did when he made his millions.

What you seldom get with an investment guide or book is an understanding of investment basics and a simplified blueprint of your many investment options. So, here’s your simplest and free best investment guide to all of the investments in the world. There are only 4 different investments or asset classes out there depending on how you categorize things. Once you bring it down to this level you have a basic framework to work with.

CASH EQUIVALENTS and other safe investments pay interest. Either your principal or rate of interest is fixed for a period of time. Examples include U.S. Treasury bills, money market mutual funds and bank savings accounts. Advantages include high liquidity (access to your money) and safety, low risk.

BONDS are long-term debt instruments and they pay more interest income than the above. Examples include U.S. Treasury bonds, corporate bonds and bond funds of various types. Advantages include relatively high interest income with a moderate level of risk.

EQUITIES or STOCKS represent ownership in a corporation. Examples include blue chip stocks, growth stocks and equity funds. Advantages include ample liquidity, growth and some income in the form of dividends. Risk is significant and profit potential is high.

ALTERNATIVE INVESTMENTS is our final category. Examples include real estate, gold, and foreign investments. Advantages include high profit potential and an alternative to stocks when they are out of favor. Risk can be significant here as well.

That’s about as simple as an investment guide can get. All investment options can be fit into one of these asset classes. The important thing is that you have a perspective, and that you understand the investment characteristics of any investment before you invest money. For example, someone pitches an investment to you. Where does it fit in our above format?

How does it rate in terms of: safety, liquidity, growth and profit potential, income provided and risk? All investment options can be and should be rated in terms of the above to assure that they fit your needs and risk profile.

If you learn how to invest you’ll have a means of supporting yourself for the rest of your life. Once you have a sound understanding of investment basics you’ve built a great foundation for learning how to invest. The best investment guide would cover both.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com.

According to modern law of nations, National Treatment is the fundamental system about foreigners’ civil status, whose original idea is that foreign investors can enjoy the same treatment as the internal ones. With the development of international investment and related laws, National Treatment is applied to international trade gradually. Practically, applying National Treatment into international trade is that the host investing country must provide those who have made international investment and have its own countries’ identities with National Treatment.

In the international investment regulations, there are two different statements about the National Treatment: “no less” and “equal”. Though the treaties of international investment have different statements about the National Treatment, these two definitions are unanimous in law and have no essential difference in practice. To understand the National-Treatment correctly, we must start from its relevance, which is also proved in the international investment. According to the comparative analysis of the international investment regulations, National Treatment is adopted by a large number of bilateral and multilateral treaties, which becomes a trend of the international investment regulations. Developing countries should base on the need of opening-up and their countries’ economic power, and gain the same treatment of the foreign investors.

Meanwhile, the effects and influences of the international laws are taken into serious consideration: taking care of the developed countries’ abuse of the rights in explaining the treaties and using the exceptions of treaties swiftly to protect their countries’ economic authority.

Based on the current foreign Investment laws in China, the situation of the treatment of the foreign investment is “encourage and restrict”, which manifests in the following: seldom promise the citizen the right in the protective agreements of the bilateral investment, or restrict the citizen in the treaties; raise some favorable measures for the foreign investors while restrict them, such as the tax favorable measure. In order to make good use of the foreign investment, what we need to do now is to revise and improve our regulations related to investment treatment.

The revise of the foreign investment law needs reformations in the following five aspects: unit the standards of the whole country, use the favorable measures under the WTO regulations, and gradually cancel the no coincident favorable measures between the current law and the citizen’s treatment and so on. At last the National-Treatment regulations are set up based on the foreign investment laws.

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