The Definition of Investment
Investment is defined as the commitment of current financial resources in order to achieve higher gains
in the future. It deals with what is called uncertainty domains. From this definition, the importance of
time and future arises as they are two important elements in investment. Hence, the information that
may help shape up a vision about the levels of certainty in the status of investment in the future is
significant. From an economic perspective, investment and saving are different; saving is known as the
total earnings that are not spent on consumption, whether invested to achieve higher returns or not.
Consumption is defined as one’s total expenditure on goods and services that are used to satisfy his
needs during a particular period. The values of investment or saving, as well as consumption, can be
determined at the macroeconomic level, or at the individual level, through different statistical methods
2
Real Assets and Financial
Assets
Investment assets or mechanisms usually used in
investment are classified into:
1. Real Assets.
2. Financial Assets.
Real Assets:
They are tangible assets used to produce goods
or services, such as buildings, land, machinery,
or cognitive assets that are utilized in the
production of commodities or services.
Financial Assets:
Are claims on real assets or income produced
by those assets. Examples include stocks and
bonds which are alone no more than just
worthless papers and do not directly contribute
to the production of a commodity or service,
but derive their value from the claims they
carry. The evaluation of real assets differs in
some way from financial assets due to their
differences. Financial assets are more liquid,
and have a more regulated market. They are
also fragmented into small parts which makes
it easier for a larger number of interested
people to enter the market. For example, let us
compare between buying a car or a plot of land,
and buying a stock. You need a lot of money to
buy a car or a plot compared to buying one
share in a particular company. It is also easier
to sell the stock faster than the car or plot.
Therefore, financial assets are more popular
for many. You can say that the two kinds of
assets (real & financial) have different elements
that affect their evaluation, and both have their
own market.The market related to the financial
assets is called the financial market.
Key information about Bangladesh Investment: % of GDP
Bangladesh Investment accounted for 31.3 % of its Nominal GDP in Jun 2023, compared
with a ratio of 32.0 % in the previous year.
Bangladesh investment share of Nominal GDP data is updated yearly, available from Jun
1960 to Jun 2023, with an average ratio of 17.3 %.
The data reached an all-time high of 32.2 % in Jun 2019 and a record low of 4.7 % in Jun
1972.
CEIC calculates Investment as % of Nominal GDP from annual Nominal Gross Capital
Formation and annual Nominal GDP. The Bangladesh Bureau of Statistics provides Nominal
Gross Capital Formation in local currency and Nominal GDP in local currency. Investment as %
of Nominal GDP prior to 2016 is based on old classification of data. Investment as % of Nominal
GDP prior to 2006 is sourced from the World Bank. Investment as % of Nominal GDP is in
annual frequency, ending in June of each year.
Related information about Bangladesh Investment: % of GDP
In the latest reports, Bangladesh GDP expanded 6.0 % YoY in Jun 2023.
Bangladesh Nominal GDP reached 460.2 USD bn in Jun 2022.
Its GDP deflator (implicit price deflator) increased 5.6 % in Jun 2021.
Bangladesh GDP Per Capita reached 2,657.0 USD in Jun 2023.
Its Gross Savings Rate was measured at 30.4 % in Jun 2021.
Benefits of investment
There are more investment options than ever, from traditional investments such as stocks and
bonds to alternative investments such as art investments. Roughly 1 in 5 people in Britain have
invested in the stock market, and many others invest in other asset classes.
Many people turn to investments to grow their wealth, but what exactly are the reasons behind
this – and how can investing improve your personal finances? That’s what we’ll be exploring in
this blog post. Read on for more information about the potential benefits of investing, and how
they can improve your financial well-being.
1 – Grow Your Wealth
Ultimately, the key goal of investing is to not only preserve but grow your wealth, whether it be
in the short-term or the longer term.
By strategically placing your money in various assets like stocks, bonds, or the art market, you
can begin to grow your income. This, over time, can lead to a significant profit.
The way that you receive profits can vary. Some investments will pay in the form of dividends or
interest, whereas others such as art will simply increase in value – allowing you to sell for a
higher price at a later date.
2 – Provide Regular Income
There are a range of different options that can provide you with regular income. This can come
in various forms, whether it be capital gains, interest, dividends, or passive income (for example,
rental income).
Investing for income can be a great way to access a steady cash flow, meaning you won’t need to
rely on savings. Choosing the right investment can ensure you have a reliable source of income
over time, making your money work for you. Ultimately, allocating your money wisely can
secure your financial freedom.
3 – Plan for Retirement
Whether you’re reaching the end of your career or your working life has only just begun,
planning for your retirement can ensure you’re comfortable as you get older.
For many, traditional pension plans aren’t enough to live comfortably. However, a carefully
crafted investment portfolio can be a great way to spend your golden years stress-free.
If you’re planning for your retirement in advance, longer-term investments are generally the best
option. Make the most of compound growth – this is when you earn returns on your initial
money invested, and those returns earn returns. This makes your money grow faster over time.
Investments can also mean that you have something to leave your grandchildren. This means you
can rest easy knowing that your family will be financially stable as you get older.
4 – Diversify Your Portfolio
One of the key benefits of investing is that you can put your money in a wide range of asset
classes. This is known as diversification – and is a great way to minimise the risk.
This means that if one option underperforms, others could potentially compensate. It’s
essentially a safety net against potential financial setbacks.
Many people choose a combination of traditional avenues and alternative options. Some
alternative investments include real estate, cryptocurrency, mutual funds, and art.
Art can be a great choice – it’s something tangible that you can enjoy without impacting the cost.
Likewise, the art market stands tall in times of recession and financial uncertainty and is a great
way to diversify your portfolio.
5 – Combine Passion With Financial Growth
Many people find finance a boring topic – but it doesn’t have to be. Instead of opting for
traditional options such as stocks or equity shares, you can choose to invest in something you
love.
For example, if you have an eye for property, why not purchase a property and either renovate it
or let it out to a tenant to earn passive income? Alternatively, if you are an art lover, explore
various art galleries or attend auctions and choose pieces of art to invest in. Choosing something
you love can be a lucrative passion project.
6 – Market Performance and Growth Potential
Although the financial markets can be unpredictable, they typically have a proven track record of
growth in the long term.
When you invest, you can align your financial goals with the potential for significant growth.
This can be a great way to overcome inflation and make sure that your money retains its value.
7 – Better Option Than Savings Accounts
If you want your savings to grow over time, you will need to earn a return that exceeds the rate
of inflation. However, today’s savings rates don’t look promising. Interest rates on traditional
savings accounts appear to be failing to keep up with inflation.
This means that if you keep your money in a savings account, it could be losing its value.
Investments, however, can be a great way to not only preserve your savings but increase them in
the long term.
8 – Tax Advantages
Another added benefit of investing is the tax advantages – it can be a savvy tax strategy that can
help you grow your wealth.
Certain investment options, such as Individual Savings Accounts (ISAs), come with tax
advantages. These allow you to potentially reduce your taxable income, defer taxes on gains, or
enjoy tax-free withdrawals.
If you align your choices with tax-efficient options, you get to keep more of your money. It’s a
win-win situation – increasing your wealth while optimising your tax situation.
9 – Enhanced Quality of Living
Investing is all about creating a better future and a better life. Earning steady income and profits
can improve your quality of living. It can help you meet your personal and financial goals,
whether it be starting a business, paying for your child’s education, buying a home, or simply
living comfortably.
Ultimately, a well-thought-out investment plan can provide you with the financial support you
need to turn your goals into reality.
10 – Investing Is Easier Than Ever
In the digital age, beginning your journey to financial security is easier than ever. There are so
many different options to choose from, whether it be stocks, ISAs, real estate, trades or index
funds.
Likewise, there are a range of options available, whether you’re looking for small investments or
large, whether you’re looking to invest £30k or £100k.
You can begin from the comfort of your own home, and harness the power of the internet to stay
informed and research the different markets.
If you’re looking to start investing and growing your wealth, look no further than Grove Gallery.
With Grove Gallery, you can buy art for as little as £3,000 – and expect returns of up to 12% per
year.
As an alternative avenue, art can be a great way to diversify your portfolio and mitigate risk.
Whether you’re new to the art market or you’re a seasoned investor, you can utilise our art
advisory services to maximise profits. We can provide you with all the advice and support you
need. Download our online investment guide today to get started, or contact us on 020 8103
4905.
