Investment income is the money earned from financial assets or investments rather than from a business’s core operations or employment.
It includes interest from savings accounts or bonds, dividends from shares, rental income from property, and capital gains from selling assets at a profit. For businesses, investment income can provide an additional revenue stream and may be reinvested to support growth or improve cash flow.
It is typically reported separately from operating income on financial statements. Investment income is subject to taxation, though tax rates and rules vary depending on the type of investment and jurisdiction. Managing it effectively supports long-term financial stability.