Investment has different meanings in finance and economics. India Finance & Investment Guide provides qualitative information regarding investment opportunities in India. Investment is related to saving. An investment is the commitment of funds made with an expectation of some positive returns. Investment is a concept of restoring the money via purchasing of assets, lending loans and fund terms with well-planned expectation on favorable future returns. Short term and long term investment choice makes a good difference to meet one’s requirement on investment.
· An investment is the commitment of funds made with an expectation of some positive returns.
· It is the sacrifice of current consumption in order to receive benefits in future.
· It is an economic activity in which every person is engaged in one form or another.
classification of investement:
- Physical investments: physical investment, does not mean buying stocks and bonds, but physical investment, or the addition to productive capacity. They are tangible assets like buildings, plant & machinery, equipment, residential house, commercial property which are useful for further production.
- financial investment: Financial investments as the good way of using money.before financial investment planning is very necessary because Financial planning is a process of setting objectives and to achieve the monetary goals. good financial investments will bring lots of benefits. company financial position is very strong and company reliability. Financial money investments may be used by both private individuals and companies, no matter whether they are small entrepreneurs businesses or huge corporations.
- marketable investment: Marketable investments are those that can be transferred easily from one person to another in a short time example: Shares, bonds, certificates of deposits commercial paper etc.
· Non- marketable investments: It cannot be transferred from one person to another Example: Bank deposits, company deposits, employees provident fund & thus are difficult to be converted into cash immediately.
· Transferable and non transferable :- Instruments like shares, bonds can be transferred in the name of others where as some instruments like insurance certificates cannot be transferred.
non transferable
Conclusion:
Investing is an "Any activity in which money is put at risk for the purpose of making a profit. It can be said to be an art. Many investors invest according to certain principles and a function of income and interest rates in which increase an income leads to higher investment.”