This document discusses investment and different types of investments. It is authored by Dr. B.C. AJMERA, an Associate Professor at the Faculty of Accounting and Finance, Department of Commerce at M.K.Bhavnagar University in Bhavnagar. The document defines investment as committing funds with the expectation of a positive rate of return or adding to the economy's capital stock through goods and services used for production. It also discusses factors to consider for investments like return, risk, safety, liquidity, and time period. The document outlines different direct investment alternatives like fixed principal investments, variable principal securities, and non-security investments.

1.  Dr. B.C. AJMERA
 ASSOCIATE PROFESSOR
 FACULTY OF ACCOUNTING AND FINANCE
 DEPARTMENT OF COMMERCE
 M.K.BHAVNAGAR UNIVERSITY
 BHAVNAGAR

2.  MEANING
 LOAN
 PURCHASE OF GOLD
 INSURANCE PLAN
 “A commitment of funds made in the
expectation of some positive rate of return”

3.  In financial sense, investment of a person’s
funds to derive future income in the form of
interest, dividend, pension benefits of
appreciation in the value of their capital
 In the economic sense, investment means
“the net additions to the economy’s capital
stock which consists of goods and services
that are used in the production of other
goods and service.
 New construction, plant and machinery,
inventories etc.

4.  Return
 Risk
 Safety
 Liquidity

5.  Maximization of return
 Minimization of risk
 Hedge against inflation

6.  Risk
 Capital gain
 Time period

8.  Longer life expectancy or
planning for retirement
 Increasing rate of taxation
 High interest rates
 High rate of inflation
 Larger incomes
 Availability of a complex number
of investment outlet

9.  Legal safeguard
 A stable currency
 Existing of financial institution to encourage
savings

10.  Direct investment alternative
(a) Fixed principal investment
cash
savings
savings certificate
Government bonds
Corporate bonds and debentures

11.  B) variable principal securities
equity shares
convertible debentures or preference
securities
C)Non –security investment
real estate
mortgages
commodities
business ventures
Arts, antique and other valuable

12.  Pension fund
 Provident fund
 Insurance
 Investment companies and
 Mutual fund