InvestmentFinancial Dictionary -> Investing -> Investment
All investments carry some amount of risk, although opening a savings account is 99.999% safe. It is often important to calculate what your return might be on an investment to see if it is worth your money and to see how risky it is. The most common method of doing this is with the Return On Investment or ROI formula on an annual basis, although this is often unreliable due to the guessing of several figures.
When investing it is advisable to start with small low risk investments, such as Certificates of Investment (basically a savings account) or mutual funds. Returns on these lower risk investments are generally a lot lower than others but it introduces you to how investment works and can help build up funds for more risky and complicated investments.
Many people with little knowledge in investment choose to hire specialists to do the hard work for you, picking safe investments with their expert opinion. These are known as brokers. They will charge a fee or percentage.