What is investing?

Investing refers to the act of allocating money or capital to an asset, venture, or project with the expectation that it will generate returns over time. The primary goal of investing is to grow wealth by earning a return on your investment, either in the form of capital appreciation (the increase in value of the asset) or income (such as dividends, interest, or rent). Investing differs from saving in that it involves taking on some level of risk in the hope of achieving higher returns. Common forms of investment include stocks, bonds, real estate, mutual funds, and even starting your own business.

 

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