A1AppStudio – Not a few people who only focus on selecting an investment instrument that proper as well as understand how it works when going to start investing. In fact, before that you need to know the terms of the investment world for the purpose of investment you are running as desired.
You see, a lot of terms in the world of investment, which may be heard by novice investors. Inevitably, it becomes a reason for them to retreat to divert funds to invest.
Therefore, the importance of you know the first term-term investment because if cultivated correctly, investors can get a big profit, you know.
Then, what are the terms of the investment that needs to be understood by the investors? But before that, know first let’s what it’s an investment and what are the different types of investment which is popular in Indonesia.
Don’t linger longer. See the full review below.
Understanding investment
Investment is one way to develop funds or possessions that you have. The point here is that you can earn the profits that can be used to achieve certain goals, such as the cost of the wedding up to buy a house.
For a modest investment can make the coffers of your wealth is increasing. In fact, many of the billionaires who is the richest twist of the investment. One of them is Warren Buffet to become the richest man 4 in the world with a total wealth of US$ 72.3 billion or around Rp of 1,069 trillion
Even so there are some things you should consider before deciding to poured funds into the investment. Because, in addition to the advantages, both also have a risk of fatal can make finance you ambush even gone in an instant.
Therefore, experts advise that you choose the investment instruments in accordance with the risk factor of you. In addition, do not use the funds from the post of finance other to be transferred to the investment. Why?
Because if the investment that you choose to fail, then you will not have difficulties to meet the needs of day-to-day. That’s why you are required to set aside money 10 to 20 percent of the total income for both.
Type of investment
Prior to invest you need to know what are the different types of investment which is popular in Indonesia and how it works. The goal is to earn maximum profits in accordance with the risk profile of you.
What? Here in between:
- Mutual funds
Mutual fund investment is one of the instruments that can provide a great return with minimal capital, even can be started by simply issuing the money of tens of thousands of dollars. In addition, you also do not need to bother to monitor the movement of the market at any time right stock investment directly. Why?
Because, the workings of investment funds that investors poured money into the company, a provider of mutual funds or investment managers. Furthermore, the investment manager will manage and develop the fund’s investors.
- Stock
Stock investment is the investment made by investors independently with the flexibility to manage the fund and buy shares of instrument desired. By doing so, the investor may have a claim on income and assets of the company are also entitled to attend the General Meeting of Shareholders (GMS).
- Deposits
The deposit is a banking product that offers more interest than a regular savings account. However, the customer can not make a withdrawal before the due time. Because if funds are withdrawn before the time, then the customer will be charged a penalty.
Even so, the deposits remain a choice, and belle a lot of people to breed finances because in addition to getting a large enough profit, deposits are also known to known to be very minimal risk.
- Peer to Peer Lending
What is it P2P Lending
Investing peer to peer lending is one of the ways or methods that aims to provide loan funds to individuals or businesses who need money for both personal and business purposes. So, peer to peer lending (P2P Lending) is a platform that connects between the borrower of funds with the lender that is done online.
- Gold
Gold investment is one of the investment instruments that are widely considered people because of the way it works is fairly easy and cheap. Now even you can start investing in gold with the release of the funds of not more than Rp 10 thousand, i.e. by choosing a savings gold from the Pawnshop.
Gold investment is also known minimal risk and value even continue to rise every year. Therefore, no wonder that the type of investment that one is favored by all walks of life starting from students to adults.
The term of the investment world
As already described above, the following term investment that needs to be understood by the novice investor:
- Buy & Sell
As the name suggests Buy & Sell, to sell and buy. Buy is investors poured funds to buy investment instruments that they want. While the Sell that investors sell investment instruments that they have.
- Return
Return or yield that the profit for the investor at the time of invest in. Return itself can be enjoyed by investors when they make a withdrawal of funds from the instruments they sell.
- Diversification
In the investment world there is a term known that “don’t put your eggs in one basket” (don’t put the eggs you have in one basket) the point here is don’t pour all the funds you have to one instrument effects.
The goal is that if one of the instruments which you have plunged, then still there are other instruments that can give you an advantage. That’s called diversification of investments.
- Take profit
the world of investing – take profit
Take profit is the limit price or a profit that will be obtained. Take profit can occur if where investors take the order affected by such restrictions, then the position will be closed automatically and get profit.
- Cut loss
Cut loss that is when investors sell the stock at a lower price than the purchase price, so that investors suffered losses.
- Blue chip stocks
Blue chip stocks for most investors have a meaning that is the category of stocks featured. That means stocks that fall into this category is stock with the number of market capitalization of over Usd 40 billion.
Read Also: 7 the Difference of Mutual fund Shares and Stock Investment as well As the Simulation of the Profits!
- Portfolio investment
Understanding the investment portfolio is a collection of investment assets that are owned by investors. In the portfolio, investors can diversify on a wide range of products stock to generate return and minimize risk.
- Investment manager
the world of investment – investment manager
The investment manager of the financial institution professionals who have a special permit from the Financial Services Authority (FSA), which manage clients ‘ funds in various investment instruments, with the aim of obtaining a profit for the Investors who have entrusted their funds to them.
- Capital market
The capital market is a meeting place for investors and issuers (businesses that need capital). So the capital market aims at as a facilitator of the activities of buying and selling investments. Generally, the capital market to trade long-term investment instrument such as stocks, bonds, mutual funds and other.
- Lot
Lot is a term that is commonly used in the world of stock investment. To have a company’s stock, investors are required to purchase the lot for sale the union. So, the lot itself is the unit officially used in the activities of buying and selling shares that have been defined by the Indonesia stock Exchange.
