The question of what is investment is mostly followed by where to invest. Understanding what investment is to know about different types of investments. The first refers to acquiring investments and the second category includes debt instruments. Acquiring investments offers greater returns in carrying relatively higher risk while debt instruments are less risky but offer relatively low returns.

Further what is investment can also be understood from the perspective of having a required.

Different Types of Investment

Stocks: This includes shares of ownership of any kind of company and helps you with individual returns.

Bonds: Wondering what is investment in terms of bonds. It means your money institution or government for which you receive fixed interest at regular intervals and also the face value of its maturity.

Mutual Funds: In these funds are collected from different investors and put in a companies bond or shares which are managed by the fund manager. On understanding what is investment you may choose to acquire funds or debt funds depending on your risk capacity.

ULIP: Unit-linked Insurance Plan is a type of investment that provides both investment and life insurance benefits. A portion of the money invested in ULIPs is allocated investment meaning in this plan that a part of your premium is invested in different funds and helps you in market link returns.

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