In modern times like today, the term investment appears more and more often. Investment is an effort made by someone to protect the value of their assets so that they are not eroded by inflation. In addition, investment also aims to gain profit or increase the value of assets from the initial capital spent by the owner.
The development of technology has also made it easier for people to invest. Various platforms today allow you to start investing from as little as Rp 100,000. However, it is important that you always learn and gather information first before starting any form of investment.
Here are some tips that you can do before investing:
1. Allocate income into 3 main parts
Anda dapat mengalokasikan penghasilan bulanan dengan skema berikut :
- 50% into account living for daily essential needs such as food, household needs or kost, and transportation.
- 30% set aside in an account saving which can be in the form of savings, emergency funds, and investments (many financial player which suggests an investment of 10%).
- The remaining 20% can be allocated in an account playing to fulfil entertainment needs through fun activities.
2. Get to know the investment instrument
An investment instrument is a choice of assets where you will invest capital that suits your needs, financial goals, and current financial condition.
Here are some types of investment instruments:
- Deposit
Time deposits are suitable for those who want to invest with minimal risk. You only need to save a certain amount and time period in the bank. The profit comes from the deposit interest, which is based on each bank's policy. Although the risk is minimal, you still need to be careful by choosing a trusted bank. - Gold
Similar to time deposits, gold has a low level of risk. Its value tends to be stable and continues to increase every year. If you are interested in investing in gold, you should choose gold bars instead of gold jewellery. You can buy gold through market places or choose gold savings at Pegadaian. - Mutual Funds
Mutual funds are investment instruments in the form of containers that collect a number of funds from investors. The funds are then entrusted and managed by investment managers to be invested in a securities portfolio. This investment instrument can be started with a small capital and the risk is not too big. Mutual funds consist of several options such as money market, fixed income, mixed, equity and index. - Bonds/SBN (Government Securities)
Bonds are debt securities issued by companies or governments. In simple terms, when you buy a bond, you are lending to the company or government. The profit comes from the interest on the loan which is returned along with the principal. As a beginner, it is better to choose bonds issued by the government as they are safer and less risky. - Shares
When you buy shares, you are essentially buying a partial ownership of a company. Profits from stocks usually come from dividends (profit sharing) and the growth of the stock itself. When compared to the investments mentioned above, stocks are quite risky. It requires in-depth understanding and analysis before you decide to buy shares of a company. - Fintech Peer to Peer (P2P) Lending
This is an investment made by investing in Indonesian MSMEs to develop their business. This investment usually earns profit sharing on business profits. - Forex
Forex or abbreviation of foreign exchange is the buying and selling of foreign currencies. This investment is categorised as high risk, high return Therefore, it is necessary to perform various calculations and analyses, as well as accuracy in predicting forex price fluctuations. Also, make sure to choose broker forex officially registered by the Commodity Futures Trading Supervisor (Bappebti).
3. Consider the Importance of Investing
You may consider the following:
- Customise risk profile
Risk profile is the limit of investment risk tolerance that you can or will bear. So choose an investment instrument that suits your risk profile. - Using your own funds
You should use your own funds, not a loan. Borrowing money to invest can erode your profit margin. Moreover, if the investment doesn't work out, this can lead to more debt. - Estimating own timeframe
Timeframe is one of the important factors to consider and adjust to your needs. The time period is usually divided into short-term (less than 1 year), medium-term (1-5 years), and long-term (above 5 years). The longer the term, usually the greater the benefits. - Conduct investment monitoring
Some instruments have quite active movements. You need to pay attention to the movement of your investment to know the condition of your investment at all times. - Don't panic when you see the value of your investment drop
You need to be calm, do your analysis to see if it's likely to go up or if you need to let it go so you don't lose too much. - Don't put all your eggs in one basket
If you put all your eggs in one basket, when the basket falls, all the eggs are destroyed. If you have enough funds, you can divide your investment funds into several instruments. This is just in case you experience a loss in one of the instruments, you still have a back up from the other instruments.
Source: From various sources
