Investment may be defined as sacrifice made for future gain. But investment should be after proper analysis as it involves risk of loss also. In finance, investment means purchasing of securities and other financial assets from capital market.
There are various types of investments i.e. autonomous, induced, financial, real, planned, unplanned, gross and net investment,
AUTONOMUS INVESTMENT: It does not change with the change in income level.
INDUCED INVESTMENT: It changes with change in income level.
FINANCIAL INVESTMENT: It means buying financial instruments such as shares, bonds , etc,
REAL INVESTMENT: It means investing in assets such as building, plant , machinery, etc,
PLANNED INVESTMENT: It is the investment which concentrates in few sectors
UNPLANNED INVESTMENT: It does not concentrates in few sectors, it can be any where.
GROSS INVESTMENT: It means the total amount of money spent on creation of a capital asset
NET INVESTMENT: It means gross investment less depreciation.
This is something about investment and types. In my next post we will be discussing about investment management.
Please share your views and comments.