Investment is using money to purchase assets in the hope that the asset will generate income over time or appreciate over time. Consumption, on the other hand, is when you purchase something with the immediate intent of personal use and with no expectation that it will generate money or increase in value.
Investment helps grow the economy because it creates economic activity, such as the buying and selling of goods and services and employing people. Employed people get paid and either save, invest, or spend their money. If they spend their money, businesses make more profits. Businesses can then reinvest the profits in further business activities that expand the economy.
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. According to economics, investment is the utilization of resources in order to increase income or production output in the future.
An amount deposited into a bank or machinery that is purchased in anticipation of earning income in the long run is both examples of investments.
At the end of the course, you would be able to understand:-
- Investment Environment
- Investment Characteristics
- Financial Investments
- Non Financial Investments
- Investment Planning