Investment & Gambling

• Gambling is quite the opposite of investment. Typical examples are horse races, card games, lotteries, etc. 
• It consists in taking high risks not only for high returns, but also for thrill and excitement.
• It is unplanned and non scientific

Investment & Speculation

• Investment and speculation are closely related.
• Both involve purchase of assets-shares & securities. 

1. Risk
2. Capital Gain
3. Time period

Attitude towards risk

#1- Some investors are risk averse
#2- Some investors have affinity to risk

• Risk bearing capacity of an investor is a function of his income
• A person with higher income is assumed to have a higher risk bearing capacity

Each investor tries to maximise his welfare by choosing the optimum combination of risk and expected return in accordance with his preference and capacity

Objectives of Investment

Each investor tries to maximise his welfare by choosing the optimum combination of risk and expected return in accordance with his preference and capacity.
Investors’ objectives 

Characteristics of Investment

All investments are characterised by certain features.

• Returns
• Risk
• Safety
• Liquidity
• Tax Shelter

Economic Meaning of Investment

• Net addition to the economy’s capital stock which consists of goods and services that are used in the production of other goods and services.
• Formation of new and productive capital

• New construction
• Plant and machinery
• Inventories
• All these investments generate physical assets

Financial Meaning of Investment

Commitment of a person’s funds to derive future income or appreciation in the value of their capital.

• Future income may be
• Interest
• Dividend
• Premiums
• Pension benefits
• Purchasing of shares/debentures
• Post office saving certificates
• Insurance policies

Investment has Different Meaning

Definition
Investment involves employment of funds with the aim of achieving additional income or growth in values.

• Lending money to another [interest]
• Purchasing of gold[value appreciation]
• Purchase of insurance plan[promised future benefits]

The essential quality of an investment is that it involves waiting for a reward.

Different Definitions for Investment

Investment may be defined as:

“a commitment of funds made in the expectation of some positive rate of return”  OR

“a sacrifice of current money or other resources for future benefits”.

Expectation of return is an essential element of Investment

• Return is expected to be realized in future
• Future is uncertain
• Expected return > realized return  - variation
• Variation in income is risk

Numerous avenues of investment are available today, such as, 

• Non marketable financial assets
• Bonds
• Mutual fund schemes
• Real assets
• Equity shares 
• Life insurance policies 
• Financial derivatives and
• Precious objects

How To Start Business with Zero Investment

For many peoples who start business having main problem is lack of money with them. There will be difficult to find the investor or support your business, and would be build enough capital for them.

Here are ideas to start business with zero investment: 

• Start service business that would be purchase much inventory to sell. You can buy things for service as per-job basis and choose something unique talent that you loved to. 
• Start small business that will require less money with perfect model, once you have product, it will take time to grow your business.
• If you are having computer in your home start moving to some of the persons explain your ideas open your website with your website building knowledge build business online by blogging, SEO, link building, online freelancing , sell your own products through online with desire competition.
• Help others to get the job in a good company starts with a zero investment by offering that by publishing in classifieds and in websites. 
• Start product distributor without any investment on contract bases and immediate service were to give the service for new products or business resources. Here you will get a commission when you exchange their product to someone else when the job done by you in recurred time.
• Helping students to get their school subjects by teaching maths, tutoring English or multiple languages you can handle and such as simple and free to start. Go to neighbours and in your surrounding area talk to them here is only one this is needed is space in your home for teaching students.
• Your often come up with the down-payment-enable business either offering product or services, ask for down payment or full payment. By this way you have the capital to product the orders for the particular services and no financial investment involved at your side for your business.