These Are Short-Term Investments That You Can Try
There is one type of investment that is attractive and also most suitable for beginners, namely short-term investment. This type of investment is sold back in a shorter time rather than a long-term investment. To be precise, the investment sales could be 3 years or even less. In order to be able to make this one investment in the short-term absolute safety, it is not permissible to put money in only one type of company. If the company where you invest goes bankrupt, you will lose the money invested. Better to do risk diversification, by spreading various types of stock investments in various types of existing companies or industries.
Deposit
Deposit is an investment product owned by banks and aims to assist customers in saving funds for a certain period of time. This of course will be in accordance with the provisions of the bank. Deposits can also be withdrawn only within a certain time that has been agreed upon by you as a customer with the banking sector. For investors to start a deposit, you need a minimum of IDR 5,000,000. Time deposits have a higher interest rate than savings, which are usually 4% to 8%. If you want to deposit money longer, then the interest rate you can get will be even higher. Time deposits are safe investments because they have almost no risk of loss.
Stock
Shares/ Stocks are proof of ownership from you as an investor in a company or limited liability company. This stock is a short term investment and is the one most commonly used by people. If we, as an investor, decide to buy shares, we are directly said to be the owner of the company. This will be in accordance with how much shares we have in the related company. This stock itself has the form of a sheet of paper issued by the company. The paper states that whoever owns the paper is the owner of the company. Of course, with the appropriate portion of ownership too.
Mutual Funds
Mutual funds are a forum and pattern of a fund or capital management for investors who want to invest in instruments available in the capital market. That is by the way investors buy their mutual fund units. Investment funds will be managed by the Investment Manager so that they can be forwarded and invested in another investment portfolio. For example, such as bonds and stocks that have been discussed above. You will need to do something called diversification if you are going to invest in mutual funds. This is because income will be directly proportional to the interest rate that investors receive. If there is a decrease in the level of shares in one company, at least you will not get a loss. Short-term investments carry much less risk. So, because of that, the value of return on investment received is also smaller. There are many other types of investment that we can try. Also, make sure you know what your goals for investing are.