Investment is regarded as the engine of the economic growth and development of any country. The word “Investment” can be defined in many ways according to different theories and principles. It is a term that can be used in a number of contexts. However, the different meanings and definitions of “Investment” is summarized as follows:
General Investment to a common man means buying anything that benefits him/her.
According to Economists, Investment refers to any physical or tangible asset, for example, a Building or Machinery and Equipment, etc.
On the other hand, Finance Professionals define an Investment as money utilized for buying financial assets, like Stocks, Bonds, Bullion, Real Properties, and Precious items, etc. Investment is made with the anticipation of certain positive returns in the near future.
The term Investment is defined in The Compact Oxford English Dictionary as:
- The action or process of investing.
- A thing worth buying because it may be profitable or useful in the future.
The Oxford Dictionary says that “Investment is an asset or item that is purchased with the hope that it will generate income or appreciation in the future”.
Cambridge Dictionary states Investment as “The action or process of investing money for profit”.
Graham, Benjamin, and David Dodd2 in their book “Security Analysis and Portfolio Management defined Investment as “Putting money into something with the expectation of gain within an expected period of time”. They stated that financial investment ensures one to save for rainy days. Careful investment makes the future secure.
However, the term ‘Investment” could be associated with the different activities, but the common objective in these activities is to “Employ or Commit” the money (fluids) during the planned time period seeking compensation to the investor for:
- Time value of money
- Postponement of current consumption
- Uncertainty of future payments
- Expected rate of inflation(reduced purchasing power)
2. Sources of Investment:
The total investment available in any country is from two important sources:
- Domestic Savings.
- External Resources.
For meeting the financing requirements of a growing economy, Domestic Savings of the economy flows from three different sectors like:
- Public Sector
- Private Sector and
- House-hold Sector
For citing this article:
- B, J. C. (2019). Comparative Study of Service Quality in Public and Private Hospital in Gulbarga District.
