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Difference between Vested and Invested

Last Updated : 17 Jan, 2024
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Difference between Vested and Invested: When it comes to the meaning or even the pronunciation “Vested” and “Invested” are two completely distinct words but when it comes to using these two words in real life people sometimes get confused and end up getting these two words misused. 

In this article, we will look at what exactly are “Vested” and “Invested” how they are different from each other, and their correct or more appropriate uses.

Difference-between-Vested-and-Invested

Vested vs Invested

What is Vested?

In contrast to “Invested”, “Vested” is used in several scenarios and has different mainstream uses in the real world.
Firstly we will see the most commonly used meaning of the word and we will briefly go through the other uses of “vested”.

Meaning of “Vested”

Often, the term “vested” refers to something that is totally owned or secured by a person or thing (it can be a group of people or even an organization). When anything is stated to be vested, it signifies that the organization or the individual has a legal claim or right to that property. 

If we look at a company for example, we can say that a worker working there for more than 25 years may have vested rights to their retirement benefits for their loyalty to that particular company. If we talk as an individual, a person may have a vested right to an asset or a property( it can be an automobile or real estate, or any other asset) after he/she is done with the paperwork for acquiring it.

Basic situations for using “Vested”
1. it is used to show legal right/ claim to a possession/thing
2. It is used to show the complete authority
3. it is used to show the other that your claim is strong and you have all right to that possession being referred to in the sentence.

For Example

1. “My client is vested in this house, he has all the legal paperwork to prove his ownership”
2 “Microsoft is vested to all the companies acquired by them”.

Other than the above use their some other scenario where “Vested” is used but with some other meaning 

1.  Vested 
Meaning: Dressed or clothed, especially investments
Example: “ The Pope, vested in miter and cope, is greeted by a newly created cardinal.

2. Vested (As in vested interest)
Meaning: A special reason to take an interest in something and you are biased and cannot have a neutral stand 
Example: “You Cannot be the judge you have a vested interest towards her”

What is “Invested”

“Invested“ is the past participle and past tense of invest, which is the act of investing money in a venture or business with the hope of seeing high returns. In another sense, you also put forth time and effort in the pursuit of a goal with the hope of receiving a positive outcome. 
If we look at an example of a startup the sharks (big companies) invested money in small startups in the hope of positive returns on their investment.

Basic Situation for using “Invested”

1. When you have to use part tense for “Invest”.
2. When you have to show an individual or organization’s investment. 
For clarification on the definition and application of invested, review the examples below.

For Example:
1. Anupam Mittal has invested 1 crore in a company from Rajasthan.
2. I have invested my time and effort in this article.

Comparison between Vested and Invested

Vested 

Invested

“Vested” is the past participle and past tense of Vest,  “Invested” is the past participle and past tense of invest, 
It can be used either similarly to “Vest” or other than it. Its use generally revolves around “Invest”.
It refers to something that is totally owned or secured by a person or thing.  To spend money, energy, or time on something in the hope of positive returns
Used to show Surety over possession/right over something. Used to show an individual/organization’s investments in something.
Example: “My client is vested in this house, he has all the legal paperwork to prove his ownership” Example: “Anupam Mittal has invested 1 crore in a company”

Conclusion 

“Vested” and “Invested” are two different words and should be used according to the situation and the word that you need.

The meaning of two words is stated above along with the situation in which they must be used and also some examples. It is important to understand the main difference between the two words to use them appropriately and without any confusion in the future.


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