Meaning of Investment & Investment Analysis (Fundamental of Investment) #1

Meaning of Investment & Investment Analysis

Meaning Investment 


When a person made scarifies of his/her present money or income for benefits that are going to receive in the future then this whole process is known as Investment. Simply, a person puts some part of the money in the present as an investment into something with an expected return which they will get in future, investments like Bonds, Share & Debentures, Bank Deposits, Mutual Funds, Real estates and many more. 

If we have to define Investment in a simple sentence then it will be like this

Investment is putting money after thorough analysis into something with the expectation of gain”.

So in the investment, we invest our money after proper thorough analysis and when we analyze different investment plans and avenues then that process is called Investment Analysis.

Investment Analysis 


There are a bunch of Investment avenues and options like Bonds, Shares, Mutual funds, real estate and many more So, Investors or persons who are going to invest their money must analysis there all Investment avenues properly so that good return can be received.

What we Analysis in Investment Analysis?

Ans:

  • Risk of Investment 
  • Return on Investment 
  • Liquidity of Investment
  • Tax benefits on Investment
  • Expediency 


Under Investment analysis, we analyze Risk, return, expediency, liquidity and tax benefits on different investments and also analyze economy, Industry or company properly so that we can find out a correct investment with a good amount of return.

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