In general, to invest in the distribution of futures (or sometimes another resource, such as time) in the expectation of some benefits in the future - for example, investment in durable goods, !
in real estate by the service industry, manufacturing for factories, in product development, and in research anddevelopmentHowever, this article focuses specifically on investment in financial assets.
In finance, the benefit is called a return. The return may include of capital gains or investment income, including dividends, interest, rental income etc., or the combination of the two. The projected economic return is the appropriate discounted price of the future returns The historical return comprises the actual capital gain (or loss) or income (or both) over a period of time.
Investors usually expect higher returns from riskier investments. Financial assets range from low-risk, low-returninvestments, such as high-grade government bonds, to those with higher risk and higher expected commensurate earnings, such as emerging markets stockinvestments.
Investors, especially novices, are often advised to adopt a particular investment strategy and diversify their portfolio. Diversification
