Characteristics Of Investment

Every investment contains certain portion of risk. It is a key feature of investment which refers to loss of principal, delay in payment of interest and capital etc. Most investors prefer to invest in less riskier securities.

Return expectation is the main objective of investment. Investors expect regularity of high and consistent income for their capital.

Investors expect safety for their capital. They desire certainty of return and protection of their investment or principal amount.

Liquidity means easily sale or convert the capital or investment into cash without any loss. So, most investors prefer liquid investments. 

It is another feature of investment that they are marketable. It means buying and selling or transferability of securities in the market. 

Investors invest their capital with high expectation of income. So, return on their investment should be adequate and stable.