Investment refers to using capital to purchase assets or make improvements with the goal of generating future income or capital gains. There are various types of investments like stocks, bonds, real estate, and mutual funds. The goal is to earn returns higher than inflation so purchasing power increases over time. Investment strategies can be tailored to specific goals and risk tolerance levels. Building wealth through investments can help achieve goals like buying a house or saving for retirement. Investment also drives economic growth through business creation and expansion, leading to job growth and higher incomes. Diversifying investments spreads risk and reduces the impact of any single investment performing poorly.