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Q.

What is the difference between INVESTMENT AND SAVINGS ?

Tags: money, relationships, savings
Asked by Apoorva, 11 May '10 04:39 pm
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Answers (4)

1.

Saving is in our daily life generally means as putting money aside for rainy days. Just to keep money in bank or some where like soaks . So it means you save particular amount of money for your future use. But if we consider saving with economic point of view than the definition is little changed. According to economics, saving is the personal disposable income minus personal consumption expenditure. It means the money which does not consumed immediately for buying goods. Or a part of income is saved. There is no risk factor involve.

As far as we are talking about investment than it is certain amount of money which is saved or use in some projects or certificates where we can take profit more than the money we have saved or invest. In general terms investment means the use of money to make more money. According to economics it is the production per unit time of goods are not consumed but use for future production. Example on purchase of saving certificate there we get certain inter ...more
Answered by Musfer, 11 May '10 04:41 pm

 
  
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2.

Investment is the commitment of money or capital to purchase financial instruments or other assets in order to gain profitable returns in form of interest, income, or appreciation of the value of the instrument. It is related to saving or deferring consumption. Investment is involved in many areas of the economy, such as business management and finance no matter for households, firms, or governments. An investment involves the choice by an individual or an organization such as a pension fund, after some analysis or thought, to place or lend money in a vehicle, instrument or asset, such as property, commodity, stock, bond, financial derivatives (e.g. futures or options), or the foreign asset denominated in foreign currency, that has certain level of risk and provides the possibility of generating returns over a period of time.

Investment comes with the risk of the loss of the principal sum. The investment that has not been thoroughly analyzed can be highly risky with respect to th ...more
Answered by jameel ahmed, 12 May '10 07:21 am

 
  
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3.

Saving is in our daily life generally means as putting money aside for rainy days. Just to keep money in bank or some where like soaks . So it means you save particular amount of money for your future use. But if we consider saving with economic point of view than the definition is little changed. According to economics, saving is the personal disposable income minus personal consumption expenditure. It means the money which does not consumed immediately for buying goods. Or a part of income is saved. There is no risk factor involve.
Answered by Quest, 14 Jun '13 11:46 am

 
  
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4.

Hi Friends

Major difference in investment and saving are as follows:
Savings are money or other assets kept over a long period, usually in a bank without any risk of loss or making profit but Investments are money or other assets purchased with the hope that it will generate income, reduce costs, or appreciate in the future.
Savings are low risk funds that must be liquid (available) when you need them but investments do involve greater risk.
The purpose of saving money is so you can have it for a specific purpose within a short time frame but investments yield much greater returns when left alone long enough to ride out the turbulence of the stock market.

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Answered by Probondins, 19 Nov '12 06:17 pm

 
  
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