Investment Fundamentals
Investment
Definition
What is Investment?
An asset or commitment of money made with the expectation of future income, growth, or both.
Example in practice
How This Looks in Practice
Buying units in an equity fund is an investment because the buyer expects future returns.
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Related Terms
Investment Fundamentals
Principal
The original amount of money invested or lent, excluding later returns.
Investment FundamentalsCapital
Money or other resources committed to produce income, growth, or another economic benefit.
Investment FundamentalsInvestor
A person or organisation that commits capital with the expectation of a financial return.
Asset ClassesAsset
Anything with economic value that can be owned or controlled.