What does investment mean?
An investment is a commitment of money, property, time, or effort for a hoped-for future benefit. In finance, the term most often describes capital placed into a business, property, security, fund, or other asset, either to generate income or to increase in value. It may also cover the broader act of committing resources to a project, such as a company investing in new machinery or a government investing in public transport. Investment can carry positive connotations of planning, confidence, and long-term development, although the associated risk depends on the specific venture. When used figuratively, as in "an investment in education" or "an investment in a relationship," it emphasizes sustained attention, effort, or hope for future benefit. The word is also used attributively, including in common phrases such as "investment opportunity," "investment portfolio," and "foreign direct investment."
nounAn investment is money or another resource committed to an activity or project in order to obtain a future benefit, typically financial return. It can also refer to the time, effort, or attention given to something with the expectation of a later benefit.
- Money or property committed to a business, project, or asset in order to earn a return or future benefit.
- The act of committing resources to a venture or undertaking.
- Time, effort, or attention invested in a person, activity, or project, especially with the hope of future benefit.
"After reviewing the risks, she decided to make a long-term investment in renewable energy."
"The fund's largest investment is in renewable-energy infrastructure."
"Raising her children was her greatest investment of time and energy."
The plural is used for individual commitments or holdings, especially distinct financial investments.
"Her investments include shares in several established companies."
An investment puts today's resources to work in hopes of turning them into something greater tomorrow.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does investment come from?
The word ultimately derives from Latin investire, meaning "to clothe" or "equip," with in- expressing "into" and vestire referring to clothing or dressing. The older sense of investing as clothing or equipping developed into English usage in the 16th century. The financial sense developed later from the idea of placing or laying something into a venture, with "investment" emerging in the 19th century. The modern word belongs to the same etymological family as vest, garment, divest, and investiture.
Related word forms
How investment is actually used
In financial contexts, an investment normally implies capital committed to an asset or undertaking with the possibility of gain, though a guaranteed return may not be expected. The broader sense involving time, effort, or attention is common but can sound figurative. In British usage, "investment" is also widely used in governmental and organizational contexts to refer to sustained funding of a service or sector.
Easily confused with investment
An investment commits resources to an activity or asset, whereas a divestment sells or disposes of an existing holding or business interest.