INVESTMENT

Investment has been seen as the greatest source of finance for the rich people. It has also been seen as the key opportunity to the inexperienced. Because of this, the western standard of living continue to improve more and more individuals start to recognize the advantages of investing. They have also recognize the advantage of investing even if with a small capital. Introducing investment will help you get started in the right way.

            INTRODUCTION TO INVESTMENT
Investment as defined by MACMILLAN ENGLISH DICTIONARY 'is money used in any way that earn you more money` for an example money used for buying property or shares in a company. Also investing is the process of spending money in order to improve something or make it successful. In the not shell placing your money in some sort of investment is a method of taking a predetermined amount of money and utilizing it in a way as to improve its original value and making a huge return at the long run.           

Since the reason why you want to learn how to invest is to generate profit, the reason for your investment should be more important since it will affect how much returns you can earn. It will also determine the risk level you are willing to take.
Before we go deep into investment, let answer some questions pertaining investment.

• WHAT IS AN INVESTMENT?

In general, any activity that is done today but which yield profit at a later date can be said to be an investment.
Investment involves postponing your consumption today in order to put your savings to work.

• WHO IS AN INVESTOR?

An investor is anyone who decides to put part of his/her funds/savings in an investment for future benefit. For an example: A man who has decided to use 5% of his monthly salary to buy shares can be described as an investor. An investor has some characteristics including investment objective, and expectation of return and money to invest.

• WHEN CAN YOU START INVESTING?

The best time to start investing is NOW. The younger you are, the longer the time you have to invest.

• WHY INVEST?

Investment is a necessary condition for creating wealth. Investment helps in realizing one's dream such as buying a car, house or paying for your child's education in the future.

• INVESTMENT HORIZON.

Investment time horizon refers to the period of time an investor is prepared to wait for his investment to mature. the investment time horizon is determined by the investor. For example a young man may have $10 million today to invest and would want it back in four months time while a young lady may have the same amount of money to invest and may want it five years time. In this case the young man has a short-term investment horizon while the young lady has a long-term investment horizon. 

• BENEFITS OF INVESTMENTS.

There are several benefits to be derived from investing. The obvious benefit is the profit that accrue on an investment. For instance when you invest in shares, you can earn dividend/or capital gain. Dividends are the portion of a company's profit that are distributed to shareholders during a particular financial year after they have been recommended by the directors and approved by shareholders. Capital gains refer to the difference in the price at which an investor buys shares and at which he sells them.

 When learning about how to start investing, you need to take into consideration the amount of money at your disposal. A student may decide to invest $30 while a businessman might invest a million dollar but both will look for a return on their expenses. If you would want to invest to secure a good financial future you should be ready to manage the risk involved to secure higher returns on investments. Be aware that investing will not permit you to withdraw your money instantly.

 In general, investments are categorized as low, medium and high. Investment with low risk include savings account and government bond. Medium risk investment on the other hand include certain types of property or share, while high risk investments are made up of shares from fast progressing and expanding companies exploring new markets.

 Before embarking on investing, take advantage of online and offline resources that can provide introduction to investment. You can also consult an independent financial expert or adviser to walk you through the entire process.