What is the term for the purchase of an asset with the intention of future profit?

The purchase of an asset with the intention of future profit is defined as an investment. An investment represents a commitment of funds or resources in hopes of generating income or capital appreciation over time. This can include various types of assets such as stocks, bonds, real estate, or other property intended to increase in value or yield returns in the future.

In the context of finance and economics, the term investment specifically refers to the act of allocating resources, usually money, in order to generate an income or profit. It captures the essence of seeking to benefit from the growth potential of the asset over time.

The other terms have distinct meanings: expenditures relate to the consumption of resources, loans are agreements to borrow money that must be repaid, and asset allocation refers to the strategy of dividing investments among different asset categories to manage risk. Each of these concepts stems from financial management principles but does not convey the specific intent of profit-generation through asset purchase that characterizes investments.