Written by Investing works by allocating your money into financial assets that have the potential to appreciate in value or generate income. When you invest, you purchase a portion of an asset, such as stocks or bonds, with the hope that the asset’s value will increase or that you will earn interest or dividends. The goal is to make your money work for you. Investing typically involves some level of risk — the value of the asset can fluctuate, and you may not get back the amount you initially invested. However, over time, with careful planning and strategic investments, you can see a positive return.
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