Definition of investment and some types of investment – What is investing & Why do we need to understand it? Although often used to mention the type of capital investment, in fact investment is an activity that can be found daily on a small scale. For example, saving or buying products using long-term benefits.
This activity is highly recommended for managing the origin of limited power because it is serious in the development of asset value, not just deposition. Are you interested in making an investment? Do not rush to reach a decision, see reviews of what is investment, types of investments until for example here!
What is investing?
Investment is an activity of capital investment that can be withdrawn in the future using a greater value . In short, through investment, one expects the value based on an asset will be higher as time goes on.
Investment assets can be tangible energy, when, gold, stocks, mutual funds & so on. The definition of what is investment is also mentioned in KBBI as investing money or capital in a company or project for the purpose of making a profit.
In a nutshell, the goal of investing is making income. It should be understood that the profit generated based on investment can be in the form of interest, dividends, royalties or rent. In addition, there are several other benefits based on investment, including:
Controlling a company
One of the benefits based on investment is the value that can be in the form of capital investment in a company. The existence of partial ownership of equity results in the will of investors taken into account in decision making in the company. In some cases, a person invests to maintain or form good interactions between companies.
Ensure The Availability Of Raw Materials
Some agencies deliberately invest in the business of producing standard materials related to their business use. Thus, the agency can ensure the availability of standard materials needed for the main company’s operations.
Meet Future Needs
One of the benefits of investing is to prepare for unexpected needs in the future. The value of assets that tend to rise will be a vehicle for profit that can at any time be disbursed or exchanged using other power sources when needed.
Building A Frugal Lifestyle
Investment activities arise based on the spirit of saving for the future. Thus, investors can be better trained to allocate their income in long-term assets rather than falling into consumerist and impulsive actions. This encourages an economical & debt free lifestyle.
Types Of Investments
For those who are interested in investing, you need to really know the type of investment that will be made. The reason is, this will affect the profit opportunities and specifications of the applicable agreement. Learn about the following types of investments
Forms Of Investment
There are 2 types of investment, namely real assets & financial assets. What is real asset investment? This form of investment can be done using visible or non-visible assets, such as land, precious metals, & property. Meanwhile, financial asset investment is a type carried out using securities, such as deposits & shares.
In general, investments can be divided into 2 types according to the time period, namely long-term & short-term. This arrangement will certainly affect expectations when receiving profits. Therefore, it is crucial for investors to know the type of term options when investing.
Long-term investment includes capital investment activities during the three to tens of years. Although long, the value of the benefits tend to be greater than the short term. There are various types of long-term investment instruments offered, such as pension funds, stocks, and precious metals.
What is a short-term investment? Investors can set to invest capital using a short period of time for 1-three years. Although it tends to be worth less.
This type of investment can be a solution for those of you who need profit for immediate needs. Examples of short-term investment instruments are mutual funds & P2P Lending.
Investment products are a type of asset that is the object of capital investment. Here are some well-known investment instruments in Indonesia, including:
Mutual funds are one of the most popular investment products. Prospective new investors are highly recommended to know what mutual fund investment is. The reason is, this product only requires a little capital, starting from IDR 100,000, using an automatic management system under the investment manager.
What is Stock Investing & Why is it so famous? With great profit potential and easy to sell, this investment product Poly attracted new investors as well as seniors. Shares are proof of ownership of a company. How then to use the risk? Take it easy, stocks are the fault of one investment instrument using low risk.
Even though it looks expensive, it doesn’t take a big capital to invest in stocks. In addition, new investors can also learn how to manage stocks based on professional energy to develop tactics to increase profits & avoid losses.
What is gold investment? Gold investment has a steady increase in value every year, as a result of which it can be used as another type of safe investment. In addition, gold can also be the perfect choice for those of you who prefer physical investment products using clear intrinsic value.
Gold investment should be done in the form of bars, not jewelry. This is because the purity of gold is a crucial point for choosing its value. You can buy this type of pure gold bullion at a store or through a trusted implementation.