Investment refers to the allocation of resources, usually money, in order to generate income or profit. This can involve purchasing assets such as stocks, bonds, or real estate, with the expectation that their value will increase over time. Investors aim to grow their wealth through careful analysis and strategic decision-making. Different types of investments carry varying levels of risk and potential return. For instance, stocks may offer higher returns but come with greater volatility, while bonds are generally considered safer but provide lower yields. Understanding these dynamics is crucial for effective investment planning.