Several approaches to defining the term "investment" have been developed in economic science. For example, Keynes defines investment as the current increase in the value of fixed capital as a result of productive activities over a given period, or a portion of income over a given period not used for acquisition. L.J. Gitman, M.D. Jonk prefers to maintain or increase capital expenditures. As an investment method of capital allocation to bring in capital and/or generate positive returns.
Balobanov I.T. asserts that investments are the use of financial resources in the form of long-term investments, and Sadvakasov, A.Sagdiyev believes that investments are investments of a long-term nature in the creation or acquisition of non-current durable assets, as well as long-term financial investments in securities and authorized capitals of other enterprises.
There are also more general definitions of investments. Rosenberg argues that investments are the process of raising large sums of money, earning income, achieving capital growth or both. Bor M.Z., Denisov A.Y. are referred to as investments - placement of capital, money in any enterprise.
Voronin V.G. asserts that by their economic content the investments either retain their monetary form or turn into material and other forms (i.e. there is a process of transformation: resources - costs - income). Igoshin N. V. suggested that we should consider investments in a broad and narrow sense: in general, investments are investments of free money in various types of financial and material well-being; in a narrow sense, investments are expenditures of money aimed at reproduction of capital, its maintenance, and expansion.
D.V. Nefedova believes that the economic essence of investments is to satisfy the demand of the whole economy or a certain part of it for capital because it reflects the content of financial investments only.
Most of the authors believe that the main characteristic of investment is the receipt of income.
Based on the above understanding of investments as tangible and intangible values, it is necessary to formulate the attributes that these values should possess to be considered as investments. The main and defining feature of investments is their focus on the creation of material or spiritual goods, rather than on personal consumption. This attribute is disclosed in the purpose of the investments to be made in business and other activities. Whereas, for example, foreign commodity credits should be excluded from the investment category if the supplied goods are not equipment or materials for other needs related to the implementation of investment activities; the same is true for the funds coming within the framework of official technical assistance or grants provided to our country.
The following indicators reveal the entrepreneurial nature of investments - they are invested mainly to earn profit (income) and are carried out by the investor in his name and at his own risk. Here it is necessary to emphasize that investment activity, as well as entrepreneurial activity, is characterized by independence and initiative, but these types of activities may or may not coincide with each other, respectively, the investor may or may not have the status of an entrepreneur.
Finally, the hallmark of an investment is its longevity, in the sense that it cannot be a one-off investment, although it may be short in the traditional or common sense. A certain amount of time affects both the separation of investments from other financial instruments and their classification. In particular, investments, depending on their duration, may be classified as long-term or short-term. The legislation of most developed countries specifies that short-term investments usually expire within one year and long-term investments are designed for more than one year or may not be limited to any period at all.
Thus, investments are all types of property and intellectual values, as well as rights to them, invested in the objects of entrepreneurial and other activities to obtain profit (income) and (or) to achieve a positive social effect. This definition, perhaps, is not detailed as much as possible, in our opinion, it most fully and accurately reflects the essence of such a complex and multifaceted phenomenon as investment.