It is essential to comprehend what an investment is because, on
occasion, it might be challenging to select the appropriate
instruments to achieve your financial objectives. You can make
the best decisions if you understand the significance of
investments in the context of your specific financial
Investment always involves the expenditure of some resource today—time, effort, money, or an asset—in anticipation of a future return greater than the initial investment. For instance, an investor might buy a financial asset right away with the hope that it would provide good returns later or that it can be turned into a profit at a greater cost.