We plan business to invest the fund in proper and secured way.
Investment is traditionally defined as the "commitment of resources to achieve later
benefits". If an investment involves money, then it can be defined as a "commitment
of money to receive more money later". When expenditures and receipts are defined in
terms of money, then the net monetary receipt in a time period is termed cash flow,
while money received in a series of several time periods is termed cash flow stream.
In finance, the purpose of investing is to generate a return on the invested asset.
The return may consist of a gain (profit) or a loss realized from the sale of a
property or an investment, unrealized capital appreciation (or depreciation),
investment income such as dividends, interest, or rental income, or a combination of
capital gain and income. The return may also include currency gains or losses due to
changes in foreign currency exchange rates.
Investors generally expect higher returns from riskier investments. When a low-risk
investment is made, the return is also generally low. Similarly, high risk comes
with a chance of high losses. Investors, particularly novices, are often advised to
diversify their portfolio. Diversification has the statistical effect of reducing
overall risk.
Types of Investments: -
Stocks - Business ownership, known as equity, in publicly traded companies
Bonds - loans to governments and businesses traded on public markets
Cash - holding a particular currency, whether in anticipation of spending or to take
advantage of or hedge against changes in a currency exchange rate
Real estate, which can be rented to provide ongoing income or resold if it increases
in value
Private equity in businesses that are not publicly traded on a stock exchange, often
involving venture capital funds, angel investors, or equity crowdfunding
Commodities, such as precious metals like gold, agricultural products like potatoes,
and energy deliveries like natural gas
Collectables, including art, coins, vintage cars, postage stamps, and wine
Hedge funds that use sophisticated techniques like:
