What is Investing?

From a financial standpoint, to invest means to spend money on something with the expectation that it will increase in value over time. Investments are commonly made in stocks, bonds, mutual funds, and physical assets such as real estate. Investing is a crucial element of personal finance—equipped with the right knowledge, you can grow your money at a higher rate than if it were in an ordinary savings account. Investing your money does not guarantee profitable returns, however, which is why it is important to understand the fundamentals of investing, so that you can maximize your profits while minimizing risk.

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