What is an autonomous investment?

Autonomous investment is a type of investment activity that is beyond the scope of changes in national income or production and has more in common with changes in government politicians or the desire to invest in developing technologies. Investments of this type often have nothing to do with the desire to make a profit, although the investor usually seeks to benefit from the strategy in some way. From time to time, many different types of investors are involved in this type of activity, including individual investors, corporations, governments and charity and other non -profit organizations.

Local, state and national governments may decide to participate in autonomous investment activities to provide citizens a kind of benefits without necessarily leading to any type of income generation. One simple example of this type of activity is the decision of a small city to install new street lights in several parts of the city. Investment usualE triggers the advantages that citizens allow them to feel safer at night on these streets, which may also mean that more citizens will buy in or near these streets on these streets. This activity indirectly benefits from improving the image of the current government in the eyes of citizens who feel safer and also help to stimulate the local economy by increasing chances to touch in nearby businesses. While the city does not create any profits for investing in installing new lights, other benefits in the long run are worth it.

Similarly, charity organizations can participate in autonomous investments that have nothing to do with generating profits or increasing the performance of the national economy. The local charity organization may decide to open an extracurricular program for children with low -income parents and charge little for nothing. This causes benefits for the community such as providing a safe place for children of working parents to gather and allow a genusIce to manage limited income more effectively.

The identification mark of an autonomous investment is the reason for the activity. Usually, if the investment is made in such a way that it does not generate some kind of tangible profit, but to create the benefits of a type, can be classified as autonomous. Road paving, establishment of healthcare and other facilities by charity organizations and even investment of funds in creating a neighborhood park by those living in this area can be correctly referred to as examples of autonomous investment activities.