Investment is one method of finding additional income for long-term needs. As a beginner, Pinters certainly wonders how to invest correctly so that you can make big profits and stay safe.
This article will review how to invest and some tips for those of you who are interested in investing but are still new to the investment world.
1. Defining Investment Objectives Clearly
As an investor, you should already know what your investment goals are. Whether to fund education, buy a house, or other interests.
Setting goals up front is very important. First determine the goal for the short term or long term. This goal is a benchmark for where your investment will go.
The investment objective will affect several decisions, such as the type of investment and the investment platform.
2. Prepare Investment Capital
To invest you must have capital. Provide a number of funds if you want to invest. The budget you have will determine what investment instrument is right.
Since online investment began to bloom, you can invest with a nominal that is not too large. Even with only 100 thousand capital you can already invest.
For the record, the amount of capital you use in investing will affect the return. You can get bigger profits if you dare to spend big capital.
3. Understanding the Risk Profile
Each person or investor has their own risk profile. First, identify you, including investors, with what kind of risk profile. The following are several types of investors based on their risk profile:
Conservative
Conservative risk profiles tend to be afraid to speculate. This type of investor prefers low-risk investments.
Unfortunately, investment with low risk, the return is also small.
People who fall into this type are usually old people and beginners.
If you feel that you fit this risk profile, the right investment instrument is Money Market Mutual Funds, Time Deposits, Gold & Precious Metals.
Moderate
Investors with a moderate risk profile are generally more daring than conservative types. This type of investor is not afraid to take risks playing in a more volatile market in order to get a big return.
However, this type of investor is still quite cautious.
Investors with this type usually already have some experience but are not too ambitious to pursue “giant fish”.
If you feel that you are suitable for this type, the investment instrument you can choose is Mixed Mutual Funds. This investment instrument has a fairly large return, but the risk is not as big as a stock investment.
Aggressive
Aggressive type investors have big ambitions to get “giant fish”. They are always ready to enter a volatile market with great risk in order to get a very large return.
This type of investor is usually brave enough to lose money. His tolerance for a decline in investment value is also higher.
If you feel you fit this profile, the stock market is a great choice. This market is quite volatile, but the profits are huge.
4. Determine the Investment Period
You must determine how long the investment period you want to do. Adjust to your needs. Whether for short-term, medium-term or long-term needs.
Determining the time period must also consider the availability of funds.
If the funds are already devoted to investment, it is better to choose a long period of time so that the return is greater.
If you have limited funds and the money you invest may be needed at any time, it’s a good idea to choose short-term investments.
5. Understanding the Types of Investments and Recognizing Their Characters
There are several types of investments. Each type has its own character.
Types or investment instruments in Indonesia include: Mutual Funds, Time Deposits, Stocks, Bonds, Properties, Gold & Precious Metals, etc.
You must know and understand very well the character of each instrument.
Which one is suitable for long-term or short-term investment. How big is the risk. How much return can be generated. How technical investment.
You really need to understand these basic things first. Therefore, it’s a good idea to equip yourself with sufficient knowledge before investing.
After understanding the character of each investment instrument, try to relate which one best suits your investment goals.
6. Choosing an Investment Platform
Developments in the digital world are making it easier for people to invest. There are now many digital platforms that facilitate online investment.
If you have determined what investment instrument you want to choose, now you need to choose the platform.
Do not arbitrarily choose a platform, choose one that already has a good reputation and has been supervised by the OJK.
Currently, there are several Robo Advisor platforms that can make it easier for newbie investors to build investment portfolios.
7. Implementing the Right Investment Strategy
In investing, you need a strategy.
One strategy that is quite common for novice investors is to diversify their investments.
This strategy is in the form of investing in several investment instruments.
As a back up, there are usually low-risk investment instruments to choose from.
Actually there are still many strategies in investing. Are you serious about exploring the investment world? It’s a good idea to deepen your knowledge.
Pinters can take courses on business and investing. It doesn’t matter if you’re working now. There are many online courses that you can choose from.
Understanding investing does take practice, but having in-depth knowledge will help you optimize your investment activities.
Therefore, following structured education through online courses can be very beneficial.
Don’t use money as an excuse. ledifha can help with the problem of costs. ledifha is a company that can provide special loans to help you pursue your education.
ledifha wants to facilitate the entire community so that they can access the education they want. Therefore, loans from ledifha can be used to finance schools, colleges, and courses.
After knowing an overview of how to invest through this article, it’s time for you to explore the world of investment by taking a course. ledifha is ready to help you make that happen through education loans with low interest rates.