| Investment is often defined as a tool for placement of money or capital and interest by buying property, stocks, bonds and others,but in general the investment can be interpreted as a take / use the time, money or power for the sake of profit / benefit in the future . So basically investing is to buy something that is expected, but could be resold in the future with a higher price value. (Land, houses, gold, cars, etc.) |
Why do we need to invest? There are many reasons for this, one of which is the preparation of the future through planning preparation tailored to the needs of financial capability at this time. As we know over time the value of the currency may be reduced because of inflation , ie for example the increase in the price of goods and services, inflation this is one of the main reasons why we need to invest, either the funds or the assets that already exist or will we have to price or its value can be maintained and the course is expected to rise.
Below is the main reason that investing is:
- The existence of the inflation factors that occur almost every year, and in any country.
- The need for future or current needs that have not been met
- There is a need to protect the value of assets that have been held
- The desire to increase the value of existing assets.
Investment Risk
Lately many people are investing a good investment land, houses, stocks, bonds, gold, etc., but all of it has definitely had a risk factor. Of either small, moderate, or high. Where a state in the future is also uncertain and can not be accurately predicted. investment results obtained may not be in line with expectations , and the opposite may even produce losses, the investment in this context becomes a part of life, intentionally or not people always invest , learn, work and do business.
Types of Investments
Savings and deposits
Having a bank account is the simplest way investment and easy, supported by liquidity and allows us to take at any time, the bank is also relatively very safe, because until now the bank deposits guaranteed by the government. Banks also provide flowers, larger than flower depends on the type of savings with the principle of the greater and longer the banks hold funds in general. Similar to the savings deposits alone but with a certain time period, interest on deposits offered relatively higher than savings interest. This type of investment deposits belong to the small risk.
Bonds
Bonds are a type of debt instrument with a specific time period. Bonds can be issued by a company, government or other agencies. Benefits of bond principal is capital investment plus interest coupons, coupon this magnitude has been determined and is generally a percentage higher than bank interest rates or other securities that are considered safe, given the risk of relatively higher bond. Coupon payment made at regular intervals, eg 3 months or 6 months or yearly.Payment of principal investment itself is done when the bond matures, the date on which the bond expires.
Equity
Shares is not proof of ownership of debt securities. Buying a stock means having a portion of the company, which means you share the risk with the issuer. When issuers make a profit, some will be distributed to shareholders in the form of dividends.
Opens new business
Opening a new business is also a form of investment. The reason why people start new business, in addition to the infinite potential outcomes could also be able to do the job really liked, develop individual creativity and also achieve financial independence. Keep in mind that the risk of opening a new business is relatively large, business losses can be up to the bankruptcy could be more than capital spending. In addition it also takes time dedication, skill, seriousness, determination and perhaps talent.
Property
One option that is relatively safe, as long as there is no risk of political turmoil, the house / land will not be diminished. Also the potential for the investment in the form of increasing the sale value and the result of the lease. Investing in property requires a relatively large amount of funds and also a long-term commitment, because even though its value will continue to rise, the liquidity constraint resale property is not easy and takes a long time.
Precious Metals
Gold is an investment vehicle that is very easy, but can be sold back with a relatively cheap price, gold prices also continued to increase over time, although there is a lower selling price to the value that has been used. Purchasing gold also protect from depreciation of the currency, as gold prices increase with inflation it is similar to deposit funds in the form of foreign exchange, they both protect from the risk of currency debasement.
Kolektibel
Investments in the form of a collection of objects such as works of art , although many non-economic considerations in investment in this area, but keep in mind that the value for the goods kolektibel though tends to rise but not measurable, as well as liquidity constraints which make it difficult to sell back and estimate the resale value.
Futures Market
This market emerged from the onset of forward transactions, the transaction is done today but the payment and delivery of commodities is done at a later date that has been set. This transaction protects buyers and sellers from unexpected price fluctuations. The time difference between the transaction with the delivery of a commodity that can be used for months by the speculators to trade the forward contracts. These speculators do not produce / consume these products, contracts traded on the expected future price fluctuations due to changes in supply. The futures market was originally only diproduk commodities, but later spread to the capital markets, foreign exchange and money markets.
Mutual Funds
For someone who wants to invest in money market or capital market but do not have the skills or do not have the time can be invested in mutual funds. Mutual fund is a container that collects funds from investors and then managed by the investment manager to various investment instruments. Investment instruments that can be selected is diverse, for example bonds, shares or a mixture of bonds and stocks. In addition, mutual fund based short-term debt instruments with maturities of less than one year the money market fund. For your future, start investing now.