An investment can refer to any medium or mechanism used for generating future income, including bonds, stocks, real estate property, or alternative investments. Investments usually do not come with guarantees of appreciation; it is possible to end up with less money than with what you started.

4 types of investments

There are four main investment types, or asset classes, that you can choose from, each with distinct characteristics, risks and benefits.

  • Growth investments. …
  • Shares. …
  • Property. …
  • Defensive investments. …
  • Cash. …
  • Fixed interest.

Investment in business

Investment refers to the act of buying an asset to make a profit from its use. Simply put, it is when a business spends money on something that will help it make financial returns

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