An investment involves putting capital to use today in order to increase its value over time.
Investment requires putting capital to work, in the form of time, money, effort, etc., in hopes of a greater payoff in the future than what was originally put in.
An investment can refer to any medium or mechanism used for generating future income, including bonds, stocks, real estate property, or alternative investments.
Investments usually do not come with guarantees of appreciation; it is possible to end up with less money than with what you started.
Investments can be diversified to reduce risk, though this may reduce the amount of earning potential.
Objectives of Investment
The fundamental objectives of investments in financial assets arei. to hedge against inflationii. to maximize the return at a given or lower level of riskiii. to minimize risk at a given or higher level of return.