Overview of Investment
The term investment could be explained as the act of putting a certain amount of money in a business enterprise. Investment could be made by a single individual as well as a particular business entity. The main motive behind any form of investment is to accrue some profit from the same.

Various Meanings of Investment
The word investment has been interpreted in many ways in the following fields:

Business Management
There have been a lot of meanings of investment. It has often been understood in terms of savings while at times it has been explained as delaying of consumption.
Process of Investment
As per the system of investment, a firm or an individual buys a certain asset or a property or deposits a certain sum in the bank. The particular investor hopes to make some profits from his investments.
Kinds of Investment
There are several forms of investment:

Investment in Financial Asset
Real Investment
A real investment means putting one’s money in properties like house or a particular machine or equipment. Investment in financial asset means putting money in financial institutions or financial market. The investments in financial asset could later be utilized to make a real investment.
Fields of Investment
The concept of investment is an important one in the context of the following fields:

Business Management
Real Estate
Residential Real Estate
Commercial Real Estate
Personal Finance

Investment in Business Management
In case of business management the decisions regarding investment are known as capital budgeting. Capital budgeting is considered to be one of the basic decisions in the domain of business management.
Investment in Economics
As far as economics is concerned investment is defined as the production for every single time of goods that are not meant for consumption but to be employed for the purpose of production in the future.
Investment in Finance

In the domain of finance investment means the purchase of the following:
Liquid Assets like Gold, Collectibles or Real Estate
Paper or Financial Assets
Monetary Assets

Investment in Personal Finance
When it comes to personal finance, the term investment would mean putting one’s money in any one of the following:

Risky Assets
Collective Investment Schemes
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Binomial Options Pricing Model Capital Asset Pricing Model Cox Ingersoll Ross Model
Black Model Black Scholes Model Chen Model
Liquidity Risk Commodity Risk Consumer Credit Risk
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Interest Rate Risk Settlement Risk Equity Risk
Gordon Model Monte Carlo Option Model Ho Lee Model
Rendleman Bartter Model Vasicek Model Hull White Model
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Last Updated on : 1st July 2013

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