Exploring The Type Of Investment Investment is one of the things we need to do to increase our guarantee in the future. To get started, you need to get the best possible information, including about the type of investment.
Not only in the form of money, forms of investment have various and various forms. The question is, what types of investments are suitable for beginners?
If you want to start investing, here Glints will describe different types of investments.
What Is Investment?
Investment is a way to accumulate wealth to face a future that is often full of uncertainty.
Investment is also divided into two types namely, long-term investment and short-term investment. The purpose of making an investment is to earn income or profit in the future.
There are many reasons why people make investments, such as: education funds, pension funds, traveling, health, and others.
Types Of Investment
As mentioned above, investments can be divided into two, namely: long-term investments and short-term investments. You can try both of them according to your needs.
If you want to get a quick profit, you can try short-term investing.
On the other hand, if you want to get more Exploring The Type Of Investment profit but for a longer period of time, you can try long-term investments.
1. Types Of Long Term Investment
There are 5 types of long-term investments suitable for beginners or young entrepreneurs. Among others are:
Gold is one of the options in investing, especially long-term investment. One of the reasons why gold is such a promising investment is that its price continues to rise.
As a non-renewable resource, the market demand for gold will always be great.
So, gold is also considered a safe investment because it has minimal risk, especially when the stock market is experiencing a decline.
Another advantage of this investment is that it is easy to convert into other forms, namely money.
B. Tanah dan bangunan
Land or buildings can be an option if you are interested in long-term investment with a large amount of capital.
There are many advantages if you invest in land and buildings, one of which is the minimal risk of bankruptcy.
One of the functions of the building is a basic requirement, namely the board. Land also has the same function, it can be built and is always needed, besides that the price of land tends to increase every year by 15%-20%.
What’s more, if you are observant enough to see the opportunity for land locations, the increase can be many times, you know! You can also increase the value of your Exploring The Type Of Investment by building houses, shop houses, or rented houses on it.
Does investing in land or buildings require substantial capital?
Sure. However, currently many banks offer mortgage programs that can be repaid in installments over a certain period of time according to your ability.
Investing is not only about adding to the coffers of wealth that already exist, you know! This type of investment, insurance, will provide long-lasting protection for its users.
The protection in question is if one day you get sick, you just need to use insurance and don’t worry about costs anymore.
Moreover, there are already many kinds of insurance that offer many benefits with premiums that don’t make a hole in the pocket
Not only health insurance, there is also life insurance, education insurance, and even travel insurance for those of you who like traveling.
Choose the insurance that has the best benefits and the claim procedure is not difficult and choose the insurance that best suits your needs.
This type of investment may already sound familiar to the ear. Investing in a public company can be said to be interesting because investors can already be said to own part of the company.
This proof of ownership is in the form of a sheet of paper and includes the name of the owner and the number of shares you own.
If the company you invest in is progressing well and has no problems, you will make a huge profit.
E. Stock Mutual Funds
In general, mutual funds have various types. Each type has different risks that you can adjust according to your wishes.
Generally, the type of mutual fund that is recommended for the long term is an equity fund.
Investing in stock mutual funds is similar to buying stocks outright. The difference is in stock mutual funds, the stock selection is done by the investment manager.
For those of you who have large enough funds, this mutual fund is an appropriate type of investment when you want a long-term investment.
2. Types Of Short Term Investments
Apart from long term Exploring The Type Of Investment, there are also short term investments. The thing that distinguishes long-term and short-term investments is that the return value can be said to be shorter.
If you want to play money, maybe short-term investment can be an alternative. What are the types of short-term investment?
A. Peer To Peer Lending (P2PL)
One kind of short-term investment is through Peer to Peer Lending (P2PL). The way this P2PL works is by investing in companies that provide loans to the public. In other words, you invest without a bank or other financial institution intermediary.
P2PL is the practice of borrowing and lending online through a platform called a marketplace.
The capital to start is also not that big compared to other investments, with a capital of only 1 million rupiah you can contribute to donate funds in the marketplace.
What are the advantages for lenders? One is an attractive return. You can choose the interest rate you want to get as well as the payback period.
Usually the minimum return can be chosen in a period starting from 30 days and interest from 12%. However, don’t forget to choose a marketplace that is trusted and has been supervised by the OJK.
Don’t let you choose the wrong marketplace that makes you lose and even don’t have a return.
If you want to invest in the short term, time deposits are the type of investment that is most widely chosen. With at least 6 months, you can already feel the benefits.
If you want to get a big profit, the nominal you have to save must also be a lot and vice versa, the smaller the nominal you save, the smaller the profit.
Before putting your money into a deposit, choose a bank that has high interest rates so that the returns you get are more profitable.
So, have you decided to invest in this 2020? Do you already know which investment type suits your abilities and needs?