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investment

in-VEST-ment /ɪnˈvɛstmənt/

nounB1GRESATACTGMATTOEFLIELTSUPSC

formalbusiness

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.

While primarily financial, 'investment' can also refer to putting time or effort into something for future benefit (e.g., 'an investment in education').

The story behind the word. The word 'investment' comes from the Latin 'investire,' meaning 'to clothe' or 'to surround.' In medieval times, 'investiture' referred to the formal ceremony of granting someone authority or property, often by clothing them in a special robe. By the 17th century, the financial sense emerged, perhaps implying 'clothing' money in a new form, or 'surrounding' it with the expectation of growth.

Word relationships

venture: Often implies a more speculative or risky undertaking.
stake: Refers to a share or interest, often in a business.

divestment: The act of selling off assets or investments.
consumption: Spending money on goods and services for immediate use, without expectation of future gain.

Commonly confused with

saving: 'Saving' is setting aside money; 'investment' is using saved money to potentially grow it.

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 in order to make a profit.
investable (adjective): Suitable for investment.

Collocations

financial investment
foreign investment
capital investment
direct investment
make an investment
return on investment (ROI)

Idioms & expressions

return on investment (ROI)

Example sentences

"Her first major investment was in a promising tech startup, which eventually yielded significant returns." Making a wise investment requires thorough research and a clear understanding of risk.
"The company announced a substantial investment in renewable energy projects, signaling a shift in its long-term strategy." Governments often encourage investment in infrastructure to stimulate economic growth.

Memory hook

To 'in-VEST' money is to put it into something, like putting on a vest, hoping it will cover you with profits. IN-VEST: put money in, like a vest.

When not to use

Do not use 'investment' to describe a simple purchase for immediate consumption without the expectation of future gain.

Fun facts

The concept of investment dates back to ancient civilizations, where people would 'invest' in crops, livestock, or tools to increase future productivity.
The term 'angel investor' refers to an affluent individual who provides capital for a business startup, usually in exchange for convertible debt or ownership equity.