Investment

Investment refers to the allocation of resources, typically financial, with the expectation of generating an income or profit. It involves purchasing assets, such as stocks, bonds, real estate, or business ventures, with the goal of increasing value over time. The concept is foundational in economics and finance, as it contributes to capital formation and economic growth.

Investors assess the risks and potential returns associated with different investment opportunities, often guided by the principle that higher potential returns typically come with higher risks. Investments can be made by individuals, companies, or governments, and they can vary greatly in terms of duration, liquidity, and expected returns.

In a broader sense, investment can also encompass the commitment of time, effort, or other resources toward achieving a desired outcome, such as personal development or social improvements. Ultimately, the core idea of investment is the anticipation of future benefits from current contributions.