Meaning

1. Meaning of Investment and
its Features
The term "investment" is often used to describe the practise of allocating resources (such as
money) toward the acquisition of assets or the implementation of improvements with the aim
of realising future economic returns (such as interest or capital gains). Among the many
options for investing are stocks, bonds, property, and mutual funds. The value of an
investment may rise or fall over time, so investors must be prepared to assume some degree
of uncertainty. For one's savings to grow in real terms over time, it's important to receive a
return that exceeds inflation. Varied investors have different risk tolerances and needs, thus
investment plans may be adapted to fit a wide range of circumstances.

2. • A financial investment is defined as the acquisition of a financial
product or other valuable asset with the expectation of future
financial gain. Investors should prioritise financial assets with
significant market liquidity.

3. • Valuation is the process through which the worth of a financial asset
is determined. Investing, as defined by economic theorists, is the
practise through which a manufacturer acquires stock or
manufacturing equipment with the hope that it will contribute to the
company's long-term success.