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What is Investment and What is Not

"Investment is putting money into an asset with the expectation of capital appreciation, usually over the long-term future"

Lets see what some people says about investment.

Case 1: I didn't think much and put all my money in saving account it gives me 4% interest.

Is this investment? No. You are Earning 4% interest but inflation is 6%-8%, that means you money's value getting reduced by 2%-4% every year. Who is actually earning here? banks. Same money they are giving you as loan with interest rate 11%-17%.

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This post first appeared on Finance Bandhu, please read the originial post: here

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What is Investment and What is Not


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