Investering

Investering is the act of committing money or other resources with the expectation of future financial return. Investments are typically made over a defined time horizon and involve varying degrees of risk and liquidity.

Common investment assets include stocks (equities), bonds (fixed income), real estate, and funds such as index funds or mutual funds. Other categories include commodities, cash equivalents, and alternative investments like private equity or hedge funds. The choice depends on goals, risk tolerance, and horizon.

The relationship between risk and return is central: higher potential returns usually entail higher risk. Diversification spreads risk across asset classes and geographies. A longer time horizon generally allows investors to endure short-term volatility and benefit from compounding.

Portfolio construction involves setting objectives, assessing risk tolerance, determining asset allocation, selecting instruments, and monitoring performance. Rebalancing adjusts the portfolio to maintain the target allocation as markets move.

Investors range from individuals (retail) to large institutions. Markets are regulated to protect investors and maintain fair, efficient trading. Tax considerations and fees influence net returns and strategy.

Sustainable and responsible investing considers environmental, social, and governance factors. Passive strategies aim to match market indices, while active strategies seek to outperform through security selection and market timing, though with varying evidence of success.