What is an investment?

Friday, 8/10/2018

What is an investment?

Investment has slightly different meanings in economics and finance, but a combined definition can be as "Investment is the process of putting money in assets for increasing production or financial gains."
There are various types of investments that can help you achieve your financial goals.

Ownership Investments
When you buy an ownership investment, you own that asset—something that's expected to increase in value. Ownership investments include stocks, real estate, precious objects, and business.

Banking Investments
Banks provides a safe and convenient way to accumulate savings—and some banks offer services that can help you manage your money.

Lending Investments
With #lending investments, you buy a debt that's expected to be repaid. You're sort of like a bank. 

Investments and Speculation
Speculation is a separate activity from investing. Investing involves the purchase of assets with the intent of holding them for the long term, while speculation consists in attempting to capitalize on market inefficiencies for short-term profit. 

Financial investment
Financial investment is an asset that you put money into with the hope that it will grow or appreciate into a more significant sum of money. 
Fintechproducts investor interest continues to rise in some areas of fintech including cybersecurity, artificial intelligence, #blockchain technology, and insurtech.

Investment Funds
Investment funds pool the money of many investors and invest according to a specific strategy. Funds come in various types, each with differing features. Generally, publicly offered funds—such as mutual funds, exchange-traded funds, closed-end funds and unit investment trusts.

Annuities
An annuity is a contract between you and an insurance company in which the company promises to make periodic payments to you, starting immediately or at some future time. 

Education
Your education is often called investment and many times; it does help you earn a higher income. A case could be made for you "selling" your knowledge like a small business service in return for income like an ownership investment.


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