All you need to know about investments

What do we mean by investments?

An investment is anything that you acquire or purchase and that tend to generate income for you or even appreciate in value over time. For instance, purchasing of a piece of land, its almost given that over time the piece of land will be valued high in a span of a year or more. Investments are multiple raging from financial, asset or either time.

When you go somewhere and purchase something with the main goal not consumption, it automatically becomes an investment and might earn you interest over time.

There are three factor taht revolves around investment, that is Money, an asset, time or your commitment. This all is done in relation to greater return in future as the reward.


Is investment guaranteed profits for future?

With investment, there is no guarantee that in future there will be much returns, you can end up making huge loses or even losing everything. However, determination and commitment towards your investment play a wide role to success of your investment. In addition, you can always do your due diligence and learn how you can mitigate or the risks that comes with your form of investment.


How does investments work?

Investment is anything that you do with a hope of generating more income in future. To begin with, you either put your effort, money and time. Effort comes in when you are deciding what investment you need to venture in. Lets say, its a business, you have to do your research before you can conclude, get to know all that you are required to have in terms of resources and also the best location for the same.


Once done identifying the type of investment, then you need the financial implication for the same. You need funding, at this point, you can have multiple options such as borrowing from friends, family or even banks. After getting the required finance you need to invest your time in the sane and let money work for you .


When operating this business, it is not guarantee that it may have profits in the first few months. It may go bankrup. If its that shares you purchase they can go down and you end up selling them at a penny. All investment are associated with a certain risk that as an investor you always need to learn how to deal with it.


Best investments that have high returns

According to research, there is a good number of investments opportunities that exists in the market. Viewing it from your own angle in life, you can have atleast 3 form of investment at a go. Increasing the future value of your asset topping the list.

This list includes best investments in kenya as well as United states or any other country.


Here are the top types of investment that have high returns in capital.


Real Estates

This are physical investments that you can see and decide how you can add value on them. Real estate investment are becoming popular time after time. This is due to high demand of proper and conducive environment to live.

Remember, with land, multiple buildings can be build on, topping the list residentials, offices, warehouses etc. As an investor, you can opt to purchase the site with a strategy, for instance, empty land and wait for it to appreciate. You can also purchase an already build house with an aid of reselling againg in future.



This is a new online investment that is being driven by the growing technology globally. Cryptocurrency investment involves currency that can be transacted or even hold digital value. Cryptocurrency coin can either appreciate or depreciate over time. You can also purchase and sell cryptos once they appreciate over time.

Cryptocurrency growth have seen introduction of users loans and utilization of currency. However, you need to invest your time and effort in order to learn how this cryptocurrency investment works .


Commodities investments involves tagingle raw materials such as energy, agriculture or even metals. As an investor, you can choose digital commodities such as gold or even the ETF. Alternatively, physical commodities such as gas are high in demands globally. One can make huge profits when the demand is high.



Stock investment refers to owning a piece of either private or public company. As an investor you are entitled to dividend every year, this is as a result of the profit that the company generates on yearly basis. With stock shares, the more investors are willing to buy them the higher they get in values so in future you can sell them at a higher amount.

You can opt to invest in a small company that has a potential to succeed in the marketer invest in already established companies. Both ways have their own risks.



Bonds are also referred to as fixed income securities. Refers a purchase where by you get paid a recurring amount over its life. Once the bond matures, you get the capital invested. Its a strategy that most companies and government uses to raise money.


Tips for getting started inĀ  investment?

As mentioned, investment involves certain risks, observing the following tips will help you make the right choice on investment.

  1. Consult . In every sector, there are good professionals who have invested their time to learn and observe the market. Learn from them, get to hear what they have to say of a given investment. Ask them all the question you have regarding a certain investment and they will be more than willing to give their advice.
  1. Do your research– In everything you do, research is more important than even the money or the asset you are putting aside. Even though you engage a consultant, research helps you learn the type of risk and how to mitigate them. Some of the consultant might be biased, but through research you will always get it right. Investment industry has a greater number of agents hence one might be longing getting you to their company.
  2. Learn the tax implication – You need to learn the tax associated with your intended form of investment, different countries have different taxes for different investment types.
  3. Know the risk preference– Different investments have different risk preference. There is need to know the level of risk you are likely to occur so that you dont invest and end up having huge losses. Once you learn the risk, you can opt to reducing your investment or even learn on how to best mitigate the risk.
  4. Have your personal spending plan– When investing, its always wise to have a plan, dont put money aways and then start suffering or even looking for a way to get your investment back before you can even achieve your purpose. Before investing, always ensure that you dont affect your day to day life.


Is investment same as Gambling?

The answer is no. An investment involves effort, time and money to growing your asset or business with an aid of getting profit. Though it is risky, there is high possibility of mitigating or the risk and gaining the expected profit. Gabling involves chances and only waiting your money to work for you. There is nothing you can do to mitigate the risk in this case. The risk is high and you only need to wait for the outcome.

How do you know your investment is making progress?

You need to calculate what we call return on investment. This will give you carrent standing of your asset.


Return on investment= (current value of investment- Original value of investment)

/ original value of your investment.

Final Thought

Investment means you put your money, effort and time in order to grow and with hopes of making profits in future. It is one of great way to have something to consume in the future. Although it involves certain risks, mitigating them is posible to prevent incurring losses. Major types of investments you can consider inlcudes real estates, cryptocurrencies, Stocks, bonds, commodities and any other form of busines.




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