Money can be saved as well invested.We can see that some people do job while some do business.For them who are doing jobs,have a fixed income.They will neither receive more or less but predetermined fixed income.But for them who are doing business can not determine the exact income of the future.It may be in Negative as well beyond expections also.
Here is same thing about saving and investment…When we save money we can determine the maturity amount receivable depending upon type of saving instrument while when we invest,, we can not predetermine the maturity amount but it may be multiple times that of saving.
Investment carries higher risk than saving.
Saving Instruments:
1.Saving bank account: Safety,liquidity are main advantages.Typically one get 3.5% rate of interest.
2.Fixed Deposits: These are term deposits with bank or companies with predetermined interest rates.
Investment Instruments:
1.Shares.
2.Mutual Funds.
3.Commodities.
4.Real Estate.
Saving is for more conservative persons while investing is for aggresive persons.
