We all earn money and that is used to purchase goods and services that are currently required and some portion of income is saved to meet the future need and requirement. On this way income is used in consumption or saved. Investment is a part of saving. All savings are not investment. Investment is an activity which is different from the saving. Investment must generate positive value or income.
Investment is fund used to get additional income is known as investment. It is done to increase the value of property or to get extra income. Basically there are two types of investment they are real assets and financial assets.
Real Assets: Real assets represent an actual tangible assets that may be seen, felt, hold, or collected. For an example gold, building, automobiles, machinery, factories etc.
Financial Assets: On the other hand financial assets are prices of paper representing the indirect financial claim to the real assets hold by someone. They are common stocks, preferred stocks, bonds, debentures etc.
In conclusion in this sense investment is using fund at present to get additional return in future. In investment there must be
• Anticipation of return
• Involvement of risk
• Time duration.
Investment is fund used to get additional income is known as investment. It is done to increase the value of property or to get extra income. Basically there are two types of investment they are real assets and financial assets.
Real Assets: Real assets represent an actual tangible assets that may be seen, felt, hold, or collected. For an example gold, building, automobiles, machinery, factories etc.
Financial Assets: On the other hand financial assets are prices of paper representing the indirect financial claim to the real assets hold by someone. They are common stocks, preferred stocks, bonds, debentures etc.
In conclusion in this sense investment is using fund at present to get additional return in future. In investment there must be
• Anticipation of return
• Involvement of risk
• Time duration.