What is Investment?

Investment is an important part in budgeting, a step to create a better future for you and your family. It refers to the concept of deferred consumption, which involves purchasing an asset, giving a loan or keeping funds in a bank account with the aim of generating future returns.

An investment involves the choice by an individual or an organization, after some analysis or thought, to place or lend money in instrument or asset, such as Cash Investments, Bonds, Stocks or Equities, Mutual Funds, Commodities, Real Estate and Financial Derivatives.

However, there is no profit making guaranteed in the process of investment. Investment comes with the risk of the loss of the principal sum. The investment that has not been thoroughly analyzed can be highly risky with respect to the investment owner because the possibility of losing money is not within the owner's control.