Investment

Investment 

INVESTMENT

is the commitment of fund at present with the expectation of generating more funds in the future. Investment can be in the form of real investment and financial investment. 

• Real Investment consist of the investment in    productive assets assets like real-estate, plant      and equipment, inventory and so on.

• Financial investment represents the claim on incomes and other assets such as investment in        common stocks, bond, Treasury bolls and so, on.

The most common features of investment is that it is undertaken with the expectation of earring a rate of return. In this sense, Saving and investment is the different.

Saving: It is the sacrifice of current consumption and

Investment: is the allocation of current saving with the expectation of more wealth for the consumption of future.

Similarly, every investment involves risk along with the return in generates. The risk- return relationship of investment is always positive.  Higher the level of risk associated, higher will be the investment return.