Finance and investment are like close cousins, with investment falling under the larger ambit of finance. In general terms, finance can be described as the study of money management: It deals with saving money, lending money, and spending money.
Finance is a field that is concerned with concepts of time, money, risk, and how the three work together and affect global economy. Factors such as budgets, banking, and investment play an important role and are closely followed by economists. It is a field which has three main branches – Business finance, Personal finance, and Public finance.
Investment is a practice that has its roots in the science of finance. It is a practice that individuals; organizations such as banks, and even nations undertake to secure a steady future. This makes investment a crucial financial instrument.
When you place money on something which offers an expected amount of return in a certain time period, you are investing. An investment could be made on the financial stock of a company or on commodities such as gold, steel, and agricultural items. If money is placed on a stock or a commodity after careful deliberation, the investment could reap rich dividends for the investor.
Apart from finance, the practice of investment is an important facet of other verticals such as economy and business management.
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