The primary functions of an investment asset are to increase your net worth and/or provide additional income.

Question

Quizplus · Accepted Answer

The primary purpose of investing in an asset is to increase your net worth (i.e. the value of your assets minus liabilities) and/or generate additional income over time. This can be achieved through capital appreciation (the increased value of the asset) and/or receiving regular cash flows such as dividends or interest payments.

The Primary Functions of an Investment Asset Are to Increase