What is the difference between a direct investment and an indirect investment

What is the difference between a direct investment and an indirect investment Introduction: The World of Investments Hello everyone, and welcome to today's video. When it comes to growing our wealth, investments play a crucial role. They offer the potential for financial gains and can help us achieve our long-term goals. However, not all investments are the same. Today, we'll delve into the differences between direct and indirect investments, shedding light on their unique characteristics and considerations. So, let's get started! Direct Investments: A Hands-On Approach Direct investments involve purchasing and owning assets outright. This could mean buying stocks of a particular company, investing in real estate properties, or even starting your own business. One of the key advantages of direct investments is the level of control they offer. As an investor, you have a say in the day-to-day operations and can actively influence the performance of your investment. However, this hands-on approach also means that you bear the full responsibility for any risks or losses. Direct investments often require significant capital, time, and expertise, making them more suitable for experienced investors or those with a specific interest in a particular industry. Indirect Investments: Diversification and Ease