What is Investment?

                                                           

Investment is an activity that is engaged in by people who have savings. Investment is one or more two assets that are held over some future time period. The investment will be selected on the basis of the portfolio. Here portfolio means different sectors of investment and whenever you will invest that time you have to carefully select the acceptable sectors in the portfolio. 


Investment involves the choice by an individual or an organization such as a pension fund, after some analysis or thought, to place or lend money in a vehicle, instrument or asset, such as property, commodity, stock, bond, financial derivatives (e.g. futures or options), or the foreign asset denominated in foreign currency, that has a certain level of risk and provides the possibility of generating returns over a period of time. 


When an asset is bought or a given amount of money is invested in the bank, there is anticipation that some return will be received from the investment in the future. Investment is an important part of the business and any other sector of your money. So we can say the investment is a process of re-use of your idle money. If you carefully select a potential sector for your investment you can double your money from that opportunity.


Types of Investment:


1. Autonomous Investment:

Investment which does not change with the changes in income level is called Autonomous or Government Investment.


2. Induced Investment:

Investment which changes with the changes in the income level is called Induced Investment.


3. Financial Investment:

The investment made in buying financial instruments such as new shares, bonds, securities, etc. is considered as a Financial Investment.


4. Real Investment:

The investment made in new plants and equipment, construction of public utilities like schools, roads, and railways, etc., are considered as Real Investment.


5. Planned Investment:

The investment made with a plan in several sectors of the economy with specific objectives is called Planned or Intended Investment.



6. Unplanned Investment:

Investment done without any planning is called an Unplanned or Unintended Investment.


7. Gross Investment:

Gross Investment means the total amount of money spent for the creation of new capital assets like Plant and Machinery, Factory Building, etc.


8. Net Investment:

Net Investment is Gross Investment less (minus) Capital Consumption (Depreciation) during a period of time, usually a year.


9. Entrepreneurial Investment:

The interested investment parties who are interested to invest in entrepreneurial activities.


10.Brand Investor:

Who is interested in promoting a brand having a profit percentage?




Category and Tags
More stories by
Elon Musk suggests naming a city on Mars Terminus

Photo:BusinessHabitElon Musk, the owner of SpaceX, Tesla, and the small blog writing site X (formerly Twitter), wants to establish a human settlement on Mars in the next few years. H...

China is building supercomputers in space with AI satellites

China is building its first supercomputer network in space using AI-powered satellites. The country has already launched 12 AI-powered satellites to build a network of supercomputers in space. The supercomputers will be operated by the country's stat

Baidu is introducing new technology, AI will extract money from pet sounds

The beloved dog is suddenly barking. Many people try to understand why it is barking. However, the long-standing curiosity of understanding the mind of animals through sounds can now become a reality with the help of...

Do you know what percentage of Microsoft's code is written with AI?

A significant portion of Microsoft's code is now being written using artificial intelligence (AI), said Satya Nadella, the company's chief executive officer (CEO). At the recent 'LamaCon' AI developer conference held in Menlo Park, California, USA, S

Bangladesh's economy rises to the 2nd largest in South Asia and the 9th largest in Asia.

With a GDP of USD 450.05 billion in 2024, Bangladesh's economy has grown to become the second largest in South Asia and the ninth largest in Asia, according to the Asian Development Bank's Basic Statistics 2025 series. With statistics from 46 econom

Follow Business Habit on Facebook, Twitter