Before choosing any investment instrument, you need to know and understand your financial profile. Everyone has their own profile, ranging from age, status, and needs.
Whether someone is single or, married, or have a family, each person can have different conditions and financial needs. For example, you can be single with no dependants, and don’t need to support anyone else, or a single with dependants. you can be single and need to support your family.
However, the journey to choose your investment doesn’t stop there. There are still three steps you need to do:
Recognize the objective of investment
It’s better to identify what your goals are. when you know what goals you want to achieve through investing. That way, you can find out what are your future needs are, how much is the value, which investment instrument is most suitable, and when can the invested funds be withdrawn.
Based on the term lengthperiod, investment can be divided into three categories: short, medium, and long term. Short-term investment ranges from one to three years. Medium investment ranges from three to seven years, while anything more than seven years is included in the long-term investment category.
Another thing that should be noted is the fact that each investment instrument is different in terms of character and the amount of profit generated based on the time span.
Learn various investment products
Instead of being wasted or simply stored away, your fund money must be managed properly in order to reap gainbenefits in the future. That is the purpose point of investing. There are various types of investments to choose from, including deposits, mutual funds, and stocks.
Deposits are bank savings with a minimum balance and for a certain period of time. As a customer, you will receive guaranteed profit in the form of interest which value is three times higher than the interest on regular savings. Just within one month, term deposits can provide 7.5 percent interest. In addition, this investment product has the lowest risk, making it suitable for novice investors.
Meanwhile, the concept of mutual funds is to raise funds from many investors. These funds are then managed by investment managers (IM) into various investment instruments such as stocks or bonds. The funds required are relatively smaller than deposits and can be withdrawn at any time by selling at a moment's notice.
Unlike in the past, investing in shares can now be done with capital starting from just Rp 1 million. In fact, some stock brokers allow initial capital for as low as Rp 100,000. Although it has a higher risk, but the profit you can get is quite significant compared to other investment products.
Remember to evaluate your investment
Evaluation is an important thing in investment. The goal is to compare between the plan with the actualization. If the actualization deviates too far from the plan, you can figure out what actions should be taken, such as finding the causes of not achieving the targeted result or immediately looking for investment alternatives that are more suitable.
However, this needs to be done regularly and continuously, whether it's weekly, monthly, or even yearly. The value of an investment asset can change over time depending on market conditions. These changes will certainly affect the investment benchmarks.
The point is don’t hesitate to learn more and don’t be afraid to try. Happy investing!