What is direct investment?

Let’s start by defining what a direct investment is. It is simply the fact that you manage your own financial product portfolio. In other words, you directly buy and sell financial products of companies, or projects you are interested in and will make them evolve based on your own goals. This therefore requires discipline and a good understanding of the basic principles of finance. Indeed, all financial products do not have the same yields and, most importantly, the same risks. In fact, as a general rule, the more an investment is risky, the more likely it is that the yield will be important. 

Any examples? 

Shares represent one of the main categories of financial products for direct investment but you can also invest in bonds that are generally less risky, or else, in real estate.

Drawing showing the difference between direct and indirect investment through the presence of an additional intermediary

You can also decide to invest directly in investment funds, which corresponds to investing in a more indirect way. In short, investment funds are collective investments managed by finance professionals. You should also have a look at the file I prepared for you regarding investment funds and ETF

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