Investment

Investment is a process of growing your financial status. Investing and saving often are used interchangeably, but there is a difference. Investing means that we buy assets such as stocks, equity, bonds, mutual funds, fixed deposits, etc. While saving is holding money for in case of emergency or for future.

Investment is a process of buying assets with taking a risk for which we receive a reward which is known as returns. The returns may consist of a gain or a loss realized from the sale of a property or an investment, unrealized capital appreciation (or depreciation) or investment income such as dividends, interest, rental income, etc or a combination of capital gain and income.

The money which is invested is being used by the companies or organization to perform its business activity. And in return the investor receives benefits. Investors generally expect higher returns from taking high-risk investments. When a low-risk investment is made the return is also low. There is a saying “High risk comes with high return”.

Investment can be seen as the money is making money on itself.