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What is Investment?

Investment is basically the committment of funds in assets with the hope that it will generate income or appreciate in the future with anticipated risk.
There are three words in the definition includes; funds, assets and income.

1. Funds mean the money someone is going to invest.
2. Assets mean any tangible property (Land, Building etc) or intangible (patent, copyright) or financial assets like shares and debentures of the company.
3. Income is the difference between Revenue (Cash inflow) and Expense (Cash outflow).

The building of a factory used to produce goods and the investment one makes by running college or university are both examples of investments in the economic sense.

In the financial sense investments include the purchase of bonds, stocks or real estate property.
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