Investment Definition: Investment involves sacrificing current consumption for future benefits, aiming for capital appreciation or income.
Savings vs. Investment: Savings are surplus funds after consumption, while investment deploys these funds into assets for returns.
Investment vs. Speculation: Investment focuses on long-term wealth creation with calculated risks, whereas speculation seeks short-term gains with higher risks.
Investment Objectives: Key objectives include capital preservation, income generation, and capital appreciation based on investor goals.
Capital Preservation: Aims to minimize erosion of principal, suitable for highly risk-averse investors.
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