Objectives of investment

What do you mean by investment?

Investment is a financial activity that involves risk. It is the commitment of funds for a return expected to be realized in the future. Investment may be made in financial assets or physical assets. The objectives of investors can be stated as:

(i)                 Maximization of return 

(ii)               Minimization of risk

(iii)             Hedge against inflation

Or, Objectives of investment:

1.      To have some extra money

2.      To lead a better life

3.      To set a hedge against inflation

4.      To contribute in the economic development