Investment refers to the allocation of resources, typically money, with the expectation of generating an income or profit. It involves committing capital to assets such as stocks, bonds, real estate, or businesses, intending to increase the value of that capital over time. The fundamental goal of investment is to grow wealth and achieve financial objectives, which can include long-term gains, income generation, or capital preservation. Investments can vary in risk levels, time horizons, and liquidity. Riskier investments might offer higher potential returns, while safer investments typically provide lower returns but more secure capital. The concept also encompasses various strategies, including passive investing (buying and holding assets) and active investing (frequently buying and selling to capitalize on market fluctuations). Overall, investment is a key component of personal finance, business strategy, and economic growth.
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