financialtreat – will explain about reviews about Best Investment Recommendations, for Beginner Investors that you will get in the following article. let’s look at this article carefully!
Who doesn’t want to get rich, everyone must want to get rich and one of them to get rich is with your success or success. tap if it’s easy to be successful, of course the answer is no. Because all things need hard work and smart work. this time we will give tips on cerda work by investing. How is the Best Investment?
Before getting into the core discussion we will explain a little about what is invective?. The point that you must know in advance is that not all investment is profitable and legal or official in accordance with the regulations in Indonesia, one of which is. Here we will provide the Best Investment recommendations, let’s look at the following explanation.
Definition of Investment
Before we talk about the best investment, do you already know what investment is? investment is a term we are familiar with, isn’t it. invest in a business to invest capital or funds in the hope of obtaining profitability in the future.
Meanwhile, the definition of investment according to the source of financial services, investment is investment, usually for the long term, to buy back all assets or buy shares and property to get benefits.
After we get to know the meaning of investment we will explain about the best types of investment, here is a more complete explanation below:
Best Types of Investments
In investing, there are all types, and all of them have their own advantages and disadvantages – each and not all the best types of investments are definitely profitable, here are the best investments that you can choose:
1. Stocks
Stocks are one of the most popular types of investment in Indonesia and can be your best investment choice. If you buy shares of a company listed on the Indonesia Stock Exchange (IDX), you act as a shareholder of that company and are entitled to a dividend of a percentage of the shares you own in that company.
In addition to the right to dividends, you can also benefit from the difference in the selling price of the shares. Its liquid nature and ease of trading certainly benefit you when you want to give the stock to others when your stock price rises.
In terms of returns, investing in stocks yields higher returns than other types of investments. However, along with the high nature of returns, investing in stocks also comes with high risks as prices fluctuate and are highly dependent on economic, political and certain circumstances such as holidays.
1. Mutual Funds
The definition of a mutual fund relates to the capital market, meaning that it is a forum used to raise capital from the investment community and then invested in a securities portfolio by an investment manager. In this case, as an investor, you only need to provide capital which is then managed by the investment manager to invest in a stock portfolio.
The portfolio of securities in question includes money market products, bonds and stocks. At this time, to start investing through mutual funds, you don’t need millions of rupiah, but with a minimum of IDR 100,000 you can already choose mutual funds as your investment choice. Mutual funds are also classified as long-term investments that are safer than stocks.
There are several types of mutual funds, namely stock, bond, and money market mutual funds. For those of you who want the highest return, you can choose mutual funds. Another advantage of mutual funds is that the money you invest will be managed by an investment manager, so you don’t have to worry about monitoring it every day and can be your best investment choice.
2. Bonds or Bonds
Investing in bonds is like lending money to an issuer, such as a business or government. If bonds are issued by a corporation, the funds are used to develop businesses, such as working capital, debt repayment, expansion and the like. While bonds are issued by the government through the Ministry of Finance (Kemenkeu), the proceeds from their sales are used to cover the state budget deficit.
3. Property Investment
Property investment or what is often known as real estate is the purchase of real estate for the purpose of obtaining a return on investment (ROI), through the proceeds of rent, resale, or a combination of both. This is one of the best investment options that are often made by people in Indonesia.
4. Gold or Precious Metals Investment (LM)
Precious metals or what is often referred to as gold are practical and easy investments for all circles of society. Indeed, gold offers advantages, namely quite promising yields in at least a period of 5 years, ease of collection, and an upward price trend. Even if it goes down, the value is ignored as well as purchases that can be made everywhere.
5. Insurance
Insurance is important not only to protect your personal, but also to protect your family and also the assets you own, such as a house, vehicle, and so on. If usually insurance only serves as protection, now insurance can be used as an alternative investment.
This investment-base insurance combines 2 products, namely insurance and managed funds such as mutual funds.
Generally, the premium you pay is converte into units. It is this unit that you have that will be divide into 2 types, the first to pay the cost of insurance, and the second to invest. Insurance that is commonly use as a long-term investment is life insurance.
Before buying this insurance policy, you need to correctly understand how investments in this insurance are made. Usually this type of investment has a fairly long period of time, starting from 10 years.
Every month, you are also require to make insurance payments along with the costs. By choosing investment-base insurance, the premiums you have to pay are indee higher than ordinary insurance products.
Therefore, you must carefully choose the right insurance issuing company because investing in insurance products requires more costs and is a long-term investment so you need to ensure that the insurance issuing company is a company that has obtaine permission from the competent authority and has a good track record.
Read more financial independence:
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Why you should choose the best investment
Why should you choose the best investment? The simple thing is so that you don’t experience losses or turnovers that fall, because if that happens you will have a very bad impact, in addition to your money being lost, you will definitely also feel disappointment that has an impact on your mentality and health.
So before you make an investment. Make sure you already know what will happen or what you will face if the best investment you choose actually harms you or is losing. In this case, that’s why you have to choose the best investment. That is very suitable for your needs and financial condition.
Tips for choosing the best investment
If in investing you don’t want to experience losses, make sure you understand or bother to choose the best investment. If you don’t know at all, here are tips for choosing the best investment. That can be a reference before choosing the best investment.
• Define investment goals
If it’s just to get big profits, the type of investment you choose may not work. Therefore, you need to shape your investment goals and what goals you want to achieve through investing.
For example, you need a house. So, make your home one of your investment goals. Then determine how long it will take to achieve that goal. If you want a house in the next five years. The type of investment you can choose is a medium or long-term investment.
• Get to Know the Type of Investment
In general, there are three types of time-base investments, namely short-term, medium-term and long-term investments.
Examples of short-term investments include deposits. Stocks and forex, for forex itself is quite risky and there are many more forex trading. Secrets that need to be reveale so as not to take risks that are too great risks can turn into losses.
Then there are medium-term investments such as Retail Indonesia Bonds (ORI) for retail sukuk. And lastly, there are long-term investments such as gold and mutual funds.
• Don’t Be Easily Tempte
Most of all, don’t be tempte by unreasonable promises of profits. For example, a large profit margin that will definitely not be lost. (for example 5% of the investment value per month).
Make sure the company is license first and is an official or legal company. Because there are many illegal or unofficial companies that promise fast profits. And this often happens to the public Well from this article hope you can choose. The best investment and avoid the name of illegal investment or fraudulent investment that can harm you.
In increasing your wealth, you can also choose other alternatives such as term deposits. Term deposits, is a recommended way because the level of deposit services is quite tempting.
There are term deposits that provide large profits. Mamely one of the products of the Embrace Friends cooperative. The storage service is up to 10% per year, you know. You can make it one of the smart diversification choices.
Thus the review of the Best Investment. The information above provides a way how you have goals in the future that guarantee your life success. It’s not easy but you have to do it for a bright future.