Investment

An asset bought with the expectation that it will produce income or grow in value over time.

Often confused with

Emergency Fund
An emergency fund is held safe and liquid for the worst day; an investment accepts risk in exchange for a higher expected return.
Savings Vehicles
Savings vehicles protect the amount saved and pay a modest stated rate; investments accept the chance of loss for higher expected return.

Taught in

See also

5.3.B.1