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Investing or Investment is an asset or item that is purchased with the hope that it will ho2pe that it will generate income or appreciate in the future.

In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth.

In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.



There are four main types of investment, known as asset classes. Cash investments, for example, involve putting your money in a savings account with a bank or building society. If inflation outstrips your interest rate, your money may not hold its buying power.


A bond is a loan to a government or company. In return for the loan, you should receive the money back – plus interest – on an agreed date.


You can invest in a company by buying shares. In return, you may get a proportion of any profit the company makes (depending on how many shares you have). You are entitled to have a say in how the company is run, including voting at general meetings.


If you buy a property and rent it out, you may get an income from the rent you charge, and then make a profit when you sell the property. Land and commercial buildings, such as shopping centres, are other forms of property investments.


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