Definition: Investment involves allocating money or resources to an asset or venture with the expectation of generating a return over time.
Types of Investments:
Stocks: Shares of ownership in companies, offering potential for high returns but with higher risk.
Bonds: Debt instruments issued by corporations or governments, typically offering lower returns but with more stability.
Real Estate: Property investments, which can appreciate in value and generate rental income.
Mutual Funds: Pooled investment vehicles that diversify across various assets to reduce risk.
ETFs (Exchange-Traded Funds): Similar to mutual funds but traded on stock exchanges like individual stocks.
Commodities: Physical assets like gold, oil, or agricultural products.