What is investing?

Investing is the process of buying assets such as stocks and funds (ETFs) with the aim of making a financial gain. Investing in the stock market involves using your capital to purchase assets you believe will increase in value over time, thus increasing your return on investment. When investing, your capital is at risk. This is because investments are not guaranteed to increase in value; the value of an asset can fluctuate and there is the potential for your investment to lose value. However, long-term investing also has the potential to outperform traditional savings accounts and generate a significantly higher return.