Difference Between Saving And Investment
The main dissimilarities or differences between savings and investment can be pointed out as follows:
1. Introduction
Saving: Putting not spent money safely to fulfill future needs and emergencies
Investment: Putting savings in different assets and projects in order to build wealth and to make financial gain
2. Risk Involved
Saving: It involves no risk
Investment: It is more riskier than saving
3. Liquidity
Saving: It is highly liquid in nature
Investment: It is less liquid in nature
4. Money Back
Savings: Guaranteed
Investment: No Guarantee
5. Aim/Purpose
Saving: To meet short term needs
Investment: To grow wealth and make financial gain
6. Period
Saving: Short period
Investment: Longer period
Also Read:
Also Read:
7. Return
Saving: Much lower return than investment
Investment: Higher potential return than saving
8. Examples
Saving: Bank deposits, cash in hand etc
Investment: Stocks, debentures, mutual funds etc
Saving Vs Investment (Comparison Chart)
I hope this post is helpful to understand the difference between saving and investment and to make comparison between them.
Saving Vs Investment (Comparison Chart)
Basis For Difference
|
Saving
|
Investment
|
Introduction
|
Putting not spent income for future needs
|
Allocating money or saving in assets or projects for financial gain
|
Risk
|
No
|
Yes
|
Liquidity
|
More
|
Less
|
Money Back
|
Guarantee
|
Not guarantee
|
Aim
|
To fulfill short term needs
|
To build wealth
|
Period/Time
|
Short
|
Long
|
Potential Return
|
Lower
|
Higher
|
Examples
|
Bank deposit, cash in hand etc.
|
Mutual funds, stocks, dividend etc.
|
I hope this post is helpful to understand the difference between saving and investment and to make comparison between them.
