Investment is the purchase of an asset or an item with the hope that it will generate income or appreciate in the future and be sold at the higher price and generally does not include deposits with a bank or similar institution which is opposite of trading or speculation, which are short-term practices involving a much higher degree of risk.
Financial assets take many forms and can range from the ultra safe low return government bonds to much higher risk and higher reward international stocks, and a good investment strategy will diversify the portfolio according to the specified needs and regardless of the success of a fundamental pick, full potential of the asset cannot be reached without a proper money management strategy.
Investments can be made through indirect intermediaries such as pension funds, banks, brokers, and the insurance companies which are institutions that may pool money received from a large number of individuals into funds like unit trusts and SICAVs.
This is not financial advice these are just song lyrics stuck in my head.
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