Question

Explain the meaning of Investment and types of Investment??? ​

Answer 1

in an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.

Answer 2

$\huge{ \underline{ \overline{ \mid{ \mathfrak{ \purple{ \: \: ANSWER \: \: } \mid}}}}}$

Investment refers to the process of employment it funds in some form it assets with the goals of generating income or appreciation in its value in the future.

In economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth.

In financial sense, the term investment refers to monetary asset purchased with the idea that the asset will provide income in the future or be sold at a higher price for a profit.

Investment can be classified in different ways. These are :-

• Autonomous Investment : Investment which foes ni change with the changes in income level is called Autonomous or Government investment.

• Induced Investment : Investment which changes with the changes in the income level is called Induced investment.

• Financial Investment : Investment made in buying financial instruments such as new shares, bonds etc. is considered as a Financial investment.

• Real Investment : Investment made in new plant and equipment, construction of public utilities etc. is considered as Real investment.

• Planned Investment : Investment made with a plan in several sectors of the economy with specific objectives is called as Planned or Intended investment.

• Unplanned Investment : Investment done without any planning is called Unplanned or Unintended investment.

• Gross Investment : Gross investment means the total amount of money spent for creation of new capital assets like plany and machinery, factory, building etc.

• Net Investment : Net investment is gross Investment minus capital consumption during a period of time, usually a year.