Investments

To invest is to allocate money in the expectation of some benefit in the future. In finance, an investment is a monetary asset purchased with the idea that the asset will provide an income in the future and will also appreciate in value. The spectrum of assets in which you can invest and earn a return is a very wide one. Risk and return go hand-in-hand in investing.

Asset allocation is an investment strategy that aims to balance risk and reward by appointing a portfolio’s assets according to an individual’s goals, risk tolerance, and investment time horizon. Diversification is a risk management strategy that mixes a wide variety of investments within a portfolio as a process of allocating capital in a way that reduces the exposure to any one particular asset or risk.