What is an Investment?

Individuals may generally consider saving as an option when making their financial plans and may even utilise the method of “putting money under the mattress”. However,  no growth is possible via this saving method and a loss in the value of the saving may result due to inflation, as the purchasing power of money can decrease over time. For instance, what you were able to purchase with a dollar five years ago will not be what you may be able to purchase with that dollar now. A prudent alternative would therefore be to invest your income and earnings to meet future demands and inflationary prices.

 

What is an Investment

 

 

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