Learning Materials For Accounting, Management , Finance And Economics.

Monday, November 27, 2017

Characteristics Of Investment

Main features or characteristics of investment are as follows:

1. Risk Factor

Every investment contains certain portion of risk. It is a key feature of investment which refers to loss of principal, delay in payment of interest and capital etc. Most investors prefer to invest in less riskier securities.

2. Expectation Of Return

Return expectation is the main objective of investment. Investors expect regularity of high and consistent income for their capital.

3. Safety

Investors expect safety for their capital. They desire certainty of return and protection of their investment or principal amount.

4. Liquidity

Liquidity means easily sale or convert the capital or investment into cash without any loss. So, most investors prefer liquid investments. 

5. Marketability

It is another feature of investment that they are marketable. It means buying and selling or transferability of securities in the market. 

6. Stability Of Income

Investors invest their capital with high expectation of income. So, return on their investment should be adequate and stable.