Investing means putting money into something with the goal of growing it over time. Instead of only saving cash, investors buy things like stocks, bonds, mutual funds, or ETFs because those assets may increase in value or produce income.
Example
If someone keeps $1,000 in cash, that money is easy to access but may lose buying power over time because prices rise. If they invest that $1,000, they take on risk, but they also give the money a chance to grow.
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What is the main goal of investing?
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Key takeaway
Investing is about growth over time, but growth comes with risk.