Investment is infusing money of one’s earning into asset or capital of another company to reap returns and also increase the worth of the money invested. Investments can be done in any company or can be done to purchase any asset like gold, platinum, diamonds etc. People invest expecting the value to appreciate. The other forms of investments are deposits, bonds, and cd rates are fixed in banks. They are low risk investments.
Investments are made and maintained for a period of time called locking period. After the period, the invested amount matures and can be withdrawn with interest or can be reinvested. Mutual funds are a form of investments which is managed by fund managers. They trade in the stock market on the behalf of the investors and take a commission for it. Mutual funds also have market risks. But, compared to the individual trading himself, mutual funds are less risky since the fund managers are stock market analyst as well.
Investments can also be made in government securities, insurances etc. which may not yield high returns but have low risks. Investing in industrial companies are high risks but may yield high returns. When you purchase a property, that is also a form of investments