What is an investment?

Investment can be defined as means of income, that is, it is an asset. Some people don’t know the difference between asset and liability. Liability are properties that can not be sold at a profitable price or rate.

Types of asset

  • Business
  • Bonds
  • Mutual fund
  • Real estate
  • Shares

Types of liability

  • Own car
  • Own house
  • Electronic
  • Clothe etc

Liability creates expense, while asset create income.

NOTE: Liability can easily be destroyed by fire and water, or even stolen, but asset can neither be stolen or destroyed easily.

Before you invest any money, make sure you consult your broker who are good in handling money for profit.

When investing, make sure your principal is well secured.