08 October 2013
Non trade investment means investments held other than the business purpose. In one word we can say investment made not for the view of earning of profits(not to earn income) is called Non-Trade Investment.
For example: Investment in LIC, it is invested to secure our life but not for the increasing of your income or profit, so it is non-trade investment.
Another example: If you invested in a residential house for leaving of your family at their and you didn't have an view of resale it at the time of investment means you shall kept in your hands it is called non trade investment. In case if you invested in a property with a view of resale at the time of sale of property then it is called Trade investment.
As well as if the investment is compulsory to do or continue your business then it is also called trade investment For example to taking of agency of one company then you shall invest some amount as deposit with the company as security or guarantee then it is called trade investment, because of with out investment of such amount you couldn't do your business.
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