Investment or investing is a term with several closely-related meanings in finance and economics, related to saving or deferring consumption. An asset is usually purchased, or equivalently a deposit is made in a bank, in hopes of getting a future return or interest from it. Literally, the word means the "action of putting something in to somewhere else" . The major difference in the use of the term investment in economics and finance is that economists are usually referring to a real investment - such as a machine or a house - but financial economists usually refer to a financial asset - money that is put into a bank or the market - which may then be used to buy a real asset.

Inflation will eat away the money as compared to present purchasing power. If no action is taken to grow the money faster than inflation rate, money will shrink. So the concept that money is secured with conventional savings, is not true if it doesn't beat the inflation.

Passive investments: You have worked enough for money now let the money work for you. Don't only work hard work smart.

Financial Planning: Create wealth with proper asset allocation out of savings. Protect it, and use the yield at later stage. Assets created must be income generating assets, beating inflation.Yield should be at various life stages.

Risk Management: It is about understanding risk parameters and suitably design strategy to minimize downside and optimize upside.

Note: For very technical understanding of the term within this site one can go to Linkon express here, or any good search engine.

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