Treasure magazine
INVESTMENT: FRIEND INDEED
A
Investment can be define as an asset or item that is purchased with the hope that it will generate income or will appreciate in the future. From economic view, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will be sold at a higher price for a profit.
To invest is to allocate money in the expectation of some benefits in the future. In finance, the benefit from investment is called a return. The return may consists of capital gain and / or investment income, including dividends, interest, rental income etc. the projected economic return is the appropriately discounted value of the future returns, the historic return comprises the actual capital gain( or loss) and / or income over a period of time.
Investors generally expect higher returns from riskier investments. Financial assets range from low-risk, low return investments such as high-grade government bonds, to those with higher risk and higher expected commensurate reward, such as emerging markets stock investments.
Investment is a friend indeed because of the enormous benefits investors have enjoyed from investing their resources in diverse investment. Highlighted, explained and analyzed below are some of the benefits of investment or one gets from investing.
9 | P a g e