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What is Investment?

Investment is a process of spending money for profit means any money that is spent today to increase that money in the future frame. Investment requires to sacrifice of some capital today like- Money, Time, Effort, etc. in the hope that it will generate income or increase in value at some point in the future. There are 2 types of Investment 1)Traditional Investment, and 2)Alternative Investment.

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A bond is a loan for a borrower from the bondholder. A bondholder lends money to a borrower such as a Government or a company for a fixed time period. A bond is also known as a Fixed Income Investment. A bond is the safest investment you can buy because they are considered a reliable investment tool. You can buy company bonds through an online broker. The borrower must have returned the borrowed amount after the Fixed time period, such as Semi-annual, Annual, or monthly basis. Types of Bonds:-

  • Government Bonds
  • Corporate bonds
  • Tax Saving Bonds
  • Bank and Financial Institution bonds


In simple terms, Stocks are shares of partnership that are issued by a company and purchased by the general public. Stocks are also known as Equities. In the exchange of money companies issue shares. The stock market is a platform where investors buy or sell stocks. A company issues stocks to raise capital from investors.  Types of Stocks:-

  • Common Stocks
  • Preferred Stocks


A mutual fund is an Investment that spends money from many investors which are invested by professional fund managers. A mutual fund is an investment vehicle where many investors come together and spend their money or fund. The profits and losses are shared by the investor’s amount of their investment. Type of Mutual Funds:-



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