Investing is the process of allocating money to different assets with the expectation of earning a return. It's a way to grow and preserve wealth over time by taking advantage of the compound interest effect and the potential for capital appreciation.
There are several types of investments, including stocks, bonds, mutual funds, real estate, and commodities, each with its own risks, returns, and characteristics. Investors can choose to invest in individual securities or opt for a more diversified approach by investing in a mix of assets through a portfolio.