Investment Term That You Need To Know
Investment Term That You Need To Know

Investment Definition That You Need To Know

There are few people who only focus on choosing the right investment instrument and understanding how it works when they are about to start investing. In fact, before that you need to know the terms of the investment world so that your investment goals go as desired.

You see, there are so many terms in the investment world that novice investors may hear. Inevitably, this is a reason for them to withdraw from diverting their funds to invest.

Therefore, it is important that you know in advance the investment terms because if you do it correctly, investors can get big profits.

Then, what are the investment terms that investors need to understand? But before that, let’s know first what investment is and what types of investment are popular in Indonesia.

Don’t linger any longer. Check out the full review below.

Definition of investment

Investment is one way to develop the funds or assets you have. The point here is that you can earn profits that can be used to achieve certain goals, such as wedding expenses to buying a house.

Simply put, investing can make your wealth coffers increase. In fact, many wealthy billionaires have turned their backs on investment. One of them is Warren Buffet, who is the 4th richest person in the world with a total wealth of US $ 72.3 billion or around Rp. 1,069 trillion.

Even so, there are several things you should consider before deciding to pour funds into investing. You see, in addition to profits, investment also has a fatal risk that can make your finances in disarray and even disappear in an instant.

Therefore, experts recommend that you choose an investing instrument that suits your risk factors. In addition, do not use funds from other financial posts to be transferred to investments. Why?

Because if the investing that you choose fails, then you will have no difficulty meeting your daily needs. That’s why you are required to set aside 10 to 20 percent of your total income for investment.

Before investing, you need to know what types of investments are popular in Indonesia and how they work. The goal is to get the maximum profit according to your risk profile.

Anything? Here are some of them:

1. Mutual Funds

Mutual fund investment is one of the instruments that can provide large returns with minimal capital, it can even be started by only spending tens of thousands of rupiah. In addition, you also don’t have to bother monitoring market movements at any time like direct stock investments. Why?

The reason is, the way mutual fund investment works is that investors pour money into the mutual fund provider company or investment manager. Furthermore, the investment manager will manage and develop the investors’ funds.

2. Stock

Stock investing is an investment instrument that is carried out by investors independently by freely managing funds and buying the desired stock instruments. That way, investors can have a claim on the company’s income and assets and are also entitled to attend the General Meeting of Shareholders (GMS).

3. Deposit

Time deposits are banking products that offer higher interest rates than regular savings. However, customers cannot make withdrawals before the due date. Because if the funds are withdrawn prematurely, the customer will be subject to a penalty.

Even so, deposits are still an option and a favorite for many people to develop their finances because apart from getting quite a large profit, deposits are also known to be very risk-free.

4. Peer to Peer Lending

Peer to peer lending is a method or method that aims to provide loans to individuals or businesses who need money for personal or business purposes. So, peer to peer lending (P2P Lending) is a platform that connects borrowers and lenders online.

5. Gold

Gold investing is one of the investment instruments that many people glance at because the way it works is fairly easy and cheap. Now you can even start investing in gold by only spending no more than Rp. 10 thousand, namely by choosing gold savings from Pegadaian.

Invest in Gold  is to have minimal risk and its value even continues to increase every year. Therefore, it is not surprising that this type of investment is good for everyone, from students to adults.

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