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
Add a comment
More stories by
These are the 5 Countries in the world without any Airport

Below mentioned are five independent states in the world that do not have airports, but there is at least one heliport, and the list is all small European countries - Andorra, Liechtenstein, Monaco, San Marino, and Vatican City.Andorra: Although

What is Lead Time ?

lead time is a time given by the manufacturer. Most buyers can be fixed up lead time. So now we go for what is lead time, it is a time period to get the post products or manufactured products. I am giving an example which will make a more clear conce

Best Motivational Quotes for Entrepreneurs and Business

1.) My son is now an ‘entrepreneur’. That’s what you’re called when you don’t have a job. – Ted Turner 2.) Leadership is a potent combination of strategy and character. But if you must be without one, be without the strategy. –Norm

Huawei's Own 0perating System 'Harmony OS' is Coming

Chinese brand Huawei is updating its own operating system. The BBC reports that users in the Asia region will be able to use the HarmonyOS operating system. Huawei was in turmoil after the United States read Donald T...

By 2025, the Augmented Reality Market will be Worth 300 Billion

Augmented Reality (AR) will further accelerate 5G technology, said Bob Kai, chief marketing officer of Huawei Career Business Group.He made the remarks while delivering a keynote address at Huawei's Better World Summit 2021, recently hosted by Virtua

Follow Business Habit on Facebook, Twitter