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Definition Investment is defined as the employment of funds, with the aim of achieving additional income or some growth in its

value
Investment involves the commitment of resources. Savings is primary source of investments, via sacrifices made in current consumption Element of hope that benefits will accrue in the future. Economic definition Invt. is the allocation of monetary resources to assets that are expected to yield some gain or positive returns over a given period of time

Significance of investment
Longer life Expectancy Taxation Interest Rates Inflation Income Investment Avenues

Features of Investment
Safety principal Liquidity Return Appreciation Legality

Risk involved in Investment


Systematic
1. Inflation risk 2. Interest rate risk 3. Market risk 4. Political risk 5. Changing government risk 6. Natural calamities 7. Scams and malpractices 8. Man soon 9. Industrial performance 10.International events 11.War-like situation

non-systematic
1.Business risk 2.Financial risk 3.risk due to industry specific policies 4.Disputes

Modes of Investment
Cash

Saver

Land, flats

Bank deposits

Investor

Gold, silver

P.F, LIC, NSC, Post off.

Shares, bonds, Govt. security Capital Market

Consumer durables

New issues

Stock market

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