investment

The word “investment” means money put into something, such as a business or property, with the goal of making a profit. In plain terms, something you put money, time, or effort into now because you expect it to pay off later.

“Investment” is pronounced ihn-VEHST-muhnt (/ɪnˈvɛstmənt/ in IPA).

Here is “investment” used in a sentence: “The company made a major investment in new equipment.”

“Investment” is a noun.

“Investment” is a very common word in modern English, usually learned at around the B2 level.

“Investment” has 2 distinct senses listed in this dictionary. The most common is: money put into something, such as a business or property, with the goal of making a profit.

Saving means setting money aside safely, usually in a bank, where it stays secure but grows slowly. Investment means putting money into assets like shares, property, or a business in hope of a larger return. Investment offers greater potential reward but also carries the risk of losing some or all of it.

Common forms include shares in companies, bonds that pay interest, property such as rental homes, and funds that pool many assets together. People also invest in businesses, commodities like gold, and pensions. Each type balances potential return against risk differently, which is why many investors spread money across several.

Buying shares in a company is a classic example: you pay money now hoping the shares rise in value or pay dividends later. Purchasing a property to rent out, or backing a friend's start-up, are others. In each case, money goes in with the goal of a future profit.

Investment aims for steady returns over time, based on the underlying value of an asset like a solid company or property. Speculation chases quick profit from short-term price swings and accepts far higher risk. The line can blur, but investment is generally the more patient, research-driven approach of the two.