The term investment refers to exchange of money wealth into some tangible wealth. The money wealth here refers to the money (savings) which an investor has and the term tangible wealth refers to the assets the investor acquires by sacrificing the money wealth. By investing, an investor commits the present funds to one or more assets to be held for some time in expectation of some future return in terms of interest or capital gain. Investment can be defined as commitment of funds that is expected to generate additional money.
The term Investment Environment encompasses all types of investment opportunities and the market structure that facilities buying and selling these investments. Different types of securities, institutional set-up and the market intermediaries are the components of investment environment.