What are the difference between savings
and investment?
Answers
Explanation:
Saving and investing often are used interchangeably, but there is a difference. Saving is setting aside money you don't spend now for emergencies or for a future purchase. ... Investing is buying assets such as stocks, bonds, mutual funds or real estate with the expectation that your investment will make money for you.
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*There are quite a few differences between savings and investments:
1-Investing has an element of risk that savings don’t have. With investments, you could lose the money you invested( your principal). There is also the possibility that the interest rate is not fixed and may change.
2-Savings generally have lower interest rates compared to investments. While there is a higher risk factor with investments, they sometimes have high returns.
3-Savings are best for short term goals, while investments are for long term goals. Investing is best for long term commitments to earn returns and grow wealth...
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