What is Investment
Investment generally means the allocation of extra money in an opportunity for future stream of cash inflows. The main objective of the investment is to earn some future return. This return may be of material or of non-material nature. Material means investment return in money. Non-material means the allocated money have some objective other than money i.e. for charitable purposes.
The investor can be the individuals, organizations, government, a pension fund.
In investment the investor is compensated for three basis reasons:
1. The time for allocation of funds
2. Inflation rate
3. The risk attached for allocation of funds.
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Investment generally means the allocation of extra money in an opportunity for future stream of cash inflows. The main objective of the investment is to earn some future return. This return may be of material or of non-material nature. Material means investment return in money. Non-material means the allocated money have some objective other than money i.e. for charitable purposes.
The investor can be the individuals, organizations, government, a pension fund.
In investment the investor is compensated for three basis reasons:
1. The time for allocation of funds
2. Inflation rate
3. The risk attached for allocation of funds.
For Book Reading Click Here
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