# What is investment or investing ?
- Investment is the process putting our money into various areas with expectation of earning a return .
EXAMPLE- a person x invest his money in a stock while expecting a return on it this whole process called investing.
"Important note: There is a rule in finance area —if you're hoping for gains, you must also be prepared for potential losses."
( It is not necessary that evry investment give you return you have to choose a good area where you can get good return)
## There are 3 types of investment are.
1. Short- term investment.
In very simple language , short-term investment is an investment for a time period of 6 months to 1 year.
Generally in short -term investing,
The investor tries to get a good return on their investment within 1 year .
2. Mid- term investment.
Mid- term investment is an investment for a time period of 1 year to 5 year.
In this investor Plans for 5 year hold their investment with the expectations of good return or profit.
3. Long- term investment.
Long - term investment is also based on time period but it is more then 5 year and no maximum limit on how long investment can be held .
In very simple language long - term investing means when a person do any investment and hold it for more than 5 year and for maximum hold no limit 5,6,7,8,9, year's it is called long - term investing.
## Their are various options to do investment.
Some popular investment options.
• stocks - buying share of company.
• Bonds - giving loan to company .
• Mutual funds - are a pool of money collected by multiple investors and professionally managed to invest in a diversified portfolio of assets like stock, bonds, etc.
• Real estate - purchasing a property with the expectations of increasing it value or generating rental income.
This investment options are popular ones and there are lots more options available.
Final Note for Beginners
This post provides an introductory overview of investing. Investment is a broad topic, and we’ll dive deeper into specific aspects in future post