INVESTMENT MODELS
Investment models refer to the various frameworks and strategies through which capital is allocated to different sectors and projects to generate economic returns and promote development. These models can be broadly categorized based on the source of investment (public, private, or foreign) and the nature of the investment (direct or institutional). Key investment models include:
1.Public Investment: Investment by government entities aimed at developing infrastructure, public services, and essential sectors that may not attract private investment due to lower profitability or higher risks.
2.Private Investment: Investment by private sector entities, including businesses and individuals, focusing on projects and sectors that promise profitable returns.
3.Public-Private Partnerships (PPP): Collaborative investment models where the government and private sector share risks, responsibilities, and rewards in developing infrastructure and delivering services.
4.Foreign Direct Investment (FDI): Investment from foreign entities in domestic businesses and projects, often involving significant ownership stakes and active management.
5.Foreign Institutional Investment (FII): Investment by foreign institutions in domestic financial markets, such as equities and bonds, primarily for portfolio diversification and returns.