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The word "investment" can be defined in many ways according to different theories and
principles. It is a term that can be used in a number of contexts. However, the
different meanings of "investment" are more alike than dissimilar.
Generally, investment is the application of money for earning more money.
Investment also means savings or savings made through delayed consumption.
On the other hand, finance professionals define an investment as money utilized
for buying financial assets, for example Mutual Funds, Bonds, Bullion,
Insurance; Real estate, and Precious items.
According to finance, the practice of investment refers to the buying of a
financial product or any valued item with anticipation that positive returns
will be received in the future.
The most important feature of financial investments is that they carry high
market liquidity. The method used for evaluating the value of a financial
investment is known as valuation.
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