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An investment involves using capital in the present to increase an asset's value over time. Investments may include bonds, stocks, real estate, or alternative investments.
In finance, the purpose of investing is to generate a return on the invested asset. The return may consist of a capital gain (profit) or loss, realised if the investment is sold, unrealised capital appreciation (or depreciation) if yet unsold. It may also consist of periodic income such as dividends, interest, or rental income.
Investing is the process of buying assets that increase in value over time and provide returns in the form of income payments or capital gains. In a larger sense, investing can also be about...
Learn how to invest your money in our beginner investing guide. Investing is a long-term strategy to help grow your money. The key ingredient is compound annual growth, or when the return on your investment generates its own return. Set your investment strategy before you start investing.