Glossary Terms

Financial Investment

Financial Investment
Reviewed by Minh Tong
Updated March 3, 2023

A financial investment is the practice of using money to purchase and hold assets for the purpose of making a profit. 

These investments can include stocks, bonds, mutual funds, real estate, commodities and other financial instruments.

The goal of most investors is to accumulate wealth by creating a portfolio of assets that generate returns over time. 

Investing requires careful research and understanding of asset classes, risk management strategies and market conditions in order to make informed decisions that maximize gains while minimizing potential losses. 

By developing an appropriate investment strategy, individuals can create a secure financial future with long-term growth potential. 

Investment advisors are available at many banks or online platforms to help develop personalized portfolios suited to individual needs.  Investing involves risk but it can be mitigated through sound planning and diversification strategies.

Ultimately, the most successful investors are those who have a well-researched plan in place and the discipline to stick to it.  And by taking proactive steps towards financial security, individuals can ensure that their investments will yield positive returns over time.