Invest vs. Fund

Both verbs mean to allocate a sum of money to a person or organization, but they are done for different purposes which we are going to discuss in this lesson.

What is the difference between 'invest' and 'fund'?

Both 'invest' and 'fund' are concerned with giving a sum of money to a person or organization for a purpose. However, 'invest' involves expectation of making a profit while 'fund' implies supporting or contributing to a specific purpose. This lesson will further clarify the difference between these two terms.

Profit vs. Support

'Invest' refers to allocating money, resources, or capital with the expectation of financial return or benefit in the future. Investment involves purchasing assets, such as stocks, bonds, real estate, or businesses to grow wealth, generate income, or participate in financial markets. 'Fund', however, refers to providing financial resources or capital to support a particular project, cause, or initiative. It involves supplying money or financial support to enable the implementation or continuation of a specific endeavor. Funding can be provided as grants, loans, or contributions without the expectation of financial returns.

He decided to invest his savings in the stock market to build long-term wealth.

She agreed to invest $1 million in the startup in exchange for a stake in the company.

A philanthropist decided to fund the construction of a new hospital in the community.

'Fund' is concerned with contributing to a cause without expectation of profit and cannot be used interchangeably with 'invest'.

The government is starting to fund research and development in renewable energy technologies.

Grammatical Difference

'Fund' is a transitive verb and its object is the project or purpose that is receiving the money. 'Invest', on the other hand, can be intransitive, transitive, or ditransitive. In its transitive use, the object of 'invest' can be the sum that is being allocated or the purpose for which the money is intended and in the latter case, the object must be a prepositional phrase with 'in'. In its ditransitive usage, it takes both the sum that is being put to use and the recipient of the money as direct and indirect objects in which case the direct object is a noun or noun phrase and the indirect object is a prepositional phrase with 'in'. Take a look at the examples:

The organization decided to fund a new research project.

'Fund' is a transitive verb and takes the project that will receive the money as its object.

He decided to invest wisely, considering various investment opportunities.

'Invest' as an intransitive verb.

I decided to invest my money.

'Invest' as a transitive verb with a noun phrase (my money) as its object.

I decided to invest in stocks.

'Invest' as a transitive verb with a prepositional phrase (in stocks) as its object

I decided to invest my money in stocks.

Invest' as a ditransitive verb with a noun phrase as its direct object and a prepositional phrase as its indirect object.

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