Whats the difference between investment and savings?

Whats the difference between investment and savings?

Sure, here's the difference between investment and savings:

Investment:

  • An investment is a long-term commitment to a particular asset or project with the expectation of receiving future returns, such as dividends, interest, or capital appreciation.
  • Investments can be made in various assets, including stocks, bonds, real estate, commodities, and derivatives.
  • Investments are typically made with the intention of generating income or capital appreciation in the future.

Savings:

  • A savings account is a type of deposit account that offers a guaranteed interest rate for a fixed period of time.
  • Savings accounts are typically used for emergency funds, short-term goals, or to earn interest on money that is not needed immediately.
  • Savings accounts are generally low-risk and offer a predictable return.
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