Investments refer to the allocation of resources, typically money, into assets, projects, or ventures with the expectation of generating a profit or income over time. The primary goal of investing is to grow wealth and achieve financial goals, whether through capital appreciation, interest, dividends, or rental income. Investments can take various forms, including stocks, bonds, real estate, mutual funds, commodities, or startup businesses.
The process of investing involves assessing the potential risks and returns associated with different asset classes and making informed decisions based on financial analysis, market conditions, and individual objectives. Investors can be classified as individual, institutional, or speculative, each with varying approaches and strategies.
Overall, investments are a key component of personal and institutional finance, playing a critical role in economic growth and capital markets.