Introducing Investments Early for the Future

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Currently, the investment world has become more advanced, all thanks to the support of technology that is growing faster. The scope of this investment instrument is very broad and can be done by all people. However, some people in Indonesia still like real investments such as houses, land, apartments, gold, etc… Even though investment is not just that, there are many types of investments that are worth trying with flexible returns.

There is also something that must be understood before you make an investment, whatever it may be. That investment always has risks, big or small. There is a risk that you will lose the capital used, but it can also bring profits in a certain period of time. That’s why investing is different from trading, or other conventional businesses.

Because investment is about investment, from which we hope to get a profit in the future. It’s not about how much capital is out today, how much is sold tomorrow, it’s not an investment, it’s a trade or a business.

There is also something that must be understood before you make an investment, whatever it may be. That investment always has risks, big or small. There is a risk that you will lose the capital used, but it can also bring profits in a certain period of time. That’s why investing is different from trading, or other conventional businesses.

Because investment is about investment, from which we hope to get a profit in the future. It’s not about how much capital is out today, how much is sold tomorrow, it’s not an investment, it’s a trade or a business.

Investment Type Introduction

1. Mutual Funds

You could say this is a light or soft investment. Because the risk is not too big, the capital for investment is also affordable for everyone. Simply put, mutual funds are a way to manage funds that will then be used for investment in the capital market. Banks are the main place in this mutual fund investment because a lot of money is entrenched there.

A simple description of mutual funds is that we entrust a certain amount of capital that will be used by investment managers in capital market transactions, such as for stock transactions, bonds, etc… So the money we have will be used by professionals to be replayed in the market, the difference in profits that’s the profit we get (of course there will be a certain discount later)

Excess:
Investors do not need a thorough knowledge of the world of capital markets, because all activities have been handed over to the investment manager. You have capital, the investment manager is in charge of all investment management in the capital market. Suitable for beginners in the investment world, the risk is small, the capital is also affordable according to their respective abilities.

Weakness:
Compared to other investment instruments, the profit in mutual fund investments is smaller than if we directly plunge into the capital market itself. In addition, there are many discounted fees charged in this type of investment.

Conclusion:
If you are still very new to the investment world, mutual funds are the safest choice while still being able to produce promising profits (according to the amount of capital you spend, of course)

2. Stock

It is an investment instrument that uses the securities of an institution to be circulated in the capital market. Every corporate institution definitely needs capital for its business activities, which is why they issue securities that can be purchased by capital market traders.

Investors make a profit from the difference between the selling price and the buying price. In addition, shareholders also benefit from dividends. If the company within a certain period of time gets a sustainable profit.

Pros: The benefits of investing in stocks are much greater than those of mutual funds. In addition, if we are observant in reading the price movement of a stock. If you are already familiar with the investment world, stocks can be used as a reference for you to try

Weaknesses: The capital issued is larger than mutual funds, and the risk of loss is much higher as well. But everything is still at a balanced level.

3. Bonds

It is an investment in the form of a statement of debt from an institution, both government and private, which is given to bondholders (investors).

Excess:
Regarding debt, of course, there is an element of interest in it, and usually, bond interest is higher than instruments such as deposits and so on.

Weakness:
The process of disbursing funds is quite time-consuming. The melting rate is not fluid, it takes a long process…

4. Deposit

This is the investment that is most often used in Indonesia. The concept is the same as when we save in a bank, the difference is that we cannot withdraw our funds suddenly. There is a time period for our money to be disbursed approximately between 3 months, 6 months, 12 months, or even 24 months. You could say that we save for self-investment, that’s the purpose of deposits

Excess:
The level of risk of loss is very small, suitable for new players in the investment world. The interest rate is also quite high.

Weakness:
The level of profit provided is relatively small compared to the above instruments, but if you want to have savings for the future, a deposit is suitable for you to try…

5. Forex (foreign exchange)

So, this is the investment instrument with the largest market coverage. In short, forex is an investment that uses currency as a benchmark for trading. Because in every transaction there is a flow of demand and supply including the medium of exchange aka money. In addition, the difference in the economic level of each country is different, this certainly has an impact on the demand for currency in a particular country.

Pros: The market coverage is very large, very difficult to monopolize, and takes place 24 hours a day non-stop. Anyone can become a trader in this forex investment, it is not too complicated in terms of registration compared to other investment instruments. The profit potential is also very large, and the withdrawals that occur can be very liquid, it doesn’t take a long process of days or weeks.

Weaknesses: Forex price movements tend to fluctuate, the market continues to move without stopping. In addition, the level of risk of loss in the money market is very high. You can profit in a matter of minutes, but also vice versa, your capital can be sold out in a matter of minutes.

Need extra understanding in the world of investment if you want to play forex. So if you are still a beginner, it is better to learn about forex first. Because the money market is an investment with the highest level of risk.

You should choose an investment instrument that suits your understanding, you can start with simple ones like deposits or mutual funds before investing in stocks or forex.

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