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Investment is an asset or item acquired with the goal of generating income or appreciation (increase in the value of an asset over time). When an individual purchases a good as an investment, the intent is not to consume the good but rather to use it in the future to create wealth. Investment is an effective way to put one’s money to work and potentially build wealth. Smart investing may allow your money to outpace inflation and increase in value. The greater growth potential of investing is primarily due to the power of compounding and the risk-return tradeoff. Investment refers to put your money in an asset with the aim of generating income. Investment can genuinely be successful with proper planning on identifying financial goals and making a strategy to achieve them. Investment-planning starts with assessing financial goals and making a list of your goals, ending with investment and regular portfolio monitoring. Some of the major features of investment are – risk, return, safety, liquidity, marketability, concealability, capital growth, purchasing power, stability and the benefits. Investment goals provide structure and purpose to the money we allocate to investment products such as stocks, bonds and mutual funds. Investing and investment-goal setting go hand in hand with sound personal finance practices – such as building an emergency fund and managing spending. When you invest, you make choices about what to do with your financial assets. Risk is any uncertainty with respect to your investments that has the potential to negatively impact financial welfare. For example, your investment value might rise or fall because of market conditions.