Investment refers to the allocation of resources, typically money, with the expectation of generating income or profit over time. It involves purchasing assets like stocks, bonds, real estate, or businesses in hopes that their value will increase or that they will produce returns through interest, dividends, or capital gains. Investments are considered a key component of financial planning and wealth building, as individuals and organizations seek to grow their wealth and achieve financial goals. The level of risk associated with an investment can vary depending on the type of asset and market conditions, and investors often diversify their portfolios to manage risk effectively.