IN VESTM EN T M AN AG EM EN TAn IntroductionW hat is Investm entInvestment is the employment of funds with the aim of achieving additional income or growth in value.Essential Quality- Waiting for Reward.Commitment of resources- To accrue future ene!ts."ong term CommitmentFinancial M eaningAn investment is #inancial investment if $Assets Allocation%ositive ReturnTime frameInvestm ent Range&afe Investments Ris'y InvestmentInvestors point of view -&upplier of CapitalCommitment of a person(s fund To derive #uture income- Interest) *ividends) Rent) %remiums) %ensions ene!ts) Appreciation of value of principle capital+ot important- use of moneyConsidered to e transfers of !nancial assets Econom ic Investm ent+et Additions to the economy(s capital stoc'., goods and services - are Economic InvestmentsThus Investment implies formation of new and productive capital in the form of new thingsInventories and human capital are included in investmentINVESTM ENT RELTI!NS"I#S . %ARTIE&Investors&uppliersInvestors/sersInvestm ents v$s Spec%lationParticulars Investment SpeculationTime 0ori1on "ong term , 2 3. months-&hort term , one day-Ris' "imited0igh ris'Return Consistent and moderate 0igh pro!ts4 gains/se of funds 5wn funds through savings5wn or orrowed funds*ecisions&afety) li6uidity) pro!taility) staility) performanceinformation) 7udgment) hunches) eliefsInvestm ent an& 'am (lingParticulars Investment GamblingTime 0ori1on "ong term , 2 3. months-&hort term ,few hours-Ris' "imited0igh ris'Return Consistent and moderate 0igh pro!ts4 gains%lanning %lanned /nplanned/se of funds 5wn funds through savings5wn or orrowed funds*ecisions&cienti!c analysis) nature of ris'Tips) rumors) hunches) eliefsIm portance of Investm ents"onger life e8pectancyTa8ationInterest RatesIn9ationIncome!()ective of Investm ent:ood Rate of ReturnReduced ris'"i6uidity in time of emergency&afety of funds0edge against in9ation;oney in futureFavora(le FactorsTo function e