1.
Investment Management
Dr Ajay Kumar

2.
Investment
• Investment refers to the use of money or capital to purchase assets or
make improvements with the expectation of generating income or
capital gains in the future. Types of investments include stocks,
bonds, real estate, and mutual funds, among others. Investing
involves taking on some level of risk, as the value of an investment
can fluctuate over time. The goal of investing is to earn a return that
is higher than the rate of inflation, so that the purchasing power of
the money invested increases over time. Investment strategies can be
tailored to specific goals, such as retirement or education, and to
different levels of risk tolerance.

3.
Importance
• Building wealth: Investing can help individuals and businesses build wealth
over time by earning returns on their money that are higher than the rate
of inflation. This can help them achieve financial goals such as buying a
house, funding a child's education, or saving for retirement.
• Economic growth: Investment is a key driver of economic growth, as it
allows for the creation of new businesses and the expansion of existing
ones. This can lead to job creation and higher incomes for workers.
• Diversification: Investing in a variety of assets can help spread risk and
reduce the impact of any one investment performing poorly. Diversification
is one of the key strategies for managing risk in investing.

4.
1.Financial security: By investing money, individuals can increase
their financial security and reduce their dependence on debt.
Investing for the long term can also provide a safety net for
unexpected expenses or emergencies.
2.Building a safety net for future: Investing can help you to build a
safety net for your future by generating a regular income stream
through dividends and interest payments or by selling
appreciated assets. This can help you meet your financial
needs in retirement or during other life transitions.