Capital investment refers to the allocation of funds for long-term assets or projects with the expectation of generating a return on that investment. This type of investment is typically made in order to grow and expand business operations, increase efficiency, and improve profitability over time. Capital investments can include purchasing new equipment, building construction or renovation, acquiring another company or business, or making an investment in securities such as stocks or bonds. The term "capital" refers to the funds that are used for these types of investments and not for day-to-day operations.