investment
in-VEST-ment
/ɪnˈvɛstmənt/
The action or process of investing money for profit or material result; an asset or item acquired with the goal of generating income or appreciation.
Implies a commitment of resources with the expectation of future benefit, often involving risk.
The story behind the word. The word 'investment' comes from the Latin 'investire', meaning 'to clothe in, surround'. This might seem odd for money! The connection is thought to be through the idea of 'clothing' or 'endowing' someone with power or property. By the 17th century, it evolved to mean 'to lay out money in expectation of profit', as if you were 'clothing' your money in a new form, hoping it would grow.
Word relationships
- venture: A venture is typically a risky undertaking, often a business enterprise; investment is broader and can include less risky assets.
- asset: An asset is anything of value owned; an investment is an asset acquired with the specific goal of profit.
- divestment: Divestment is the action of selling off assets or investments.
Word family
- invest (verb): to put money into financial schemes, shares, property, etc. with the expectation of achieving a profit.
- investor (noun): a person or organization that invests money.
Collocations
- make an investment
- return on investment (ROI)
- long-term investment
- foreign investment
- capital investment
Example sentences
- "Her financial advisor recommended a diversified investment portfolio for her retirement savings." Planning for retirement.
- "Education is often considered a valuable investment in one's future." Investing in education.
Memory hook
When you make an INVESTMENT, you hope your money will be 'VESTED' (clothed) in growth and profit. VESTED growth
When not to use
Do not use 'investment' for a casual purchase that doesn't have a clear expectation of financial return.
Fun facts
- The word 'vestment' (a ceremonial robe) shares the same Latin root 'vestire', highlighting the 'clothing' connection.
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