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 In its simplest form, investment is defined as the regular use of money or capital in order to generate income or profit in the future. So why is it important to invest? Protecting the value of your money and being able to have better purchasing power in the future than the current situation are among the leading answers to this question. When investing, “Why does my money lose its value or how does it retain its value?” You might think. Preservation or loss of value of money is closely related to the phenomenon of inflation, which is simply defined as a continuous rise in the general price level. Because high inflation reduces the purchasing power of money and causes it to lose its value.

For example, if you have the same amount of money in an economy where inflation is 30%, you can say that the value of that amount of money decreases by 30%. The concept of investment is actually a very broad concept. Buying real estate with the money in hand, converting your money into foreign currency and buying gold is considered an investment. In any case, the person’s expectation is that his investment resource will protect his purchasing power in the future and contribute to improving the person’s financial situation. Pleasant on our site, where you will find answers to all your questions and learn all the information about investing.ktcao.com