Investment Tips For Beginners is something that should be done from a young age. Why? Because the younger the investment, the greater the profit. However, there are also many types of investments, so it is often difficult for beginners. Here are some investment tips for beginners:
1. Learn the Variety of Existing Investments
There are various types of investments available in our country. Starting from gold investment, stock investment, mutual fund investment, sukuk investment, bond investment, and property investment.
Before you decide to invest, you should first study the advantages and disadvantages of each of these investments, including how big the risk is.
After understanding the profile of each investment, you can choose the type of investment that is most likely to provide benefits for you.
2. Choose an Investment That Suits You
When choosing the type of investment, it’s a good idea to adjust it to yourself, both financially and mentally. For those of you who like challenges, are not afraid to lose, want big profits, and have excess money, investing in stocks seems to be the right fit for you.
If you are a typical person who is afraid of big losses, enough with small but consistent returns, and not much free time, mutual fund investments, sukuk and bonds are more suitable for you to choose.
Meanwhile, for those of you who just want to save your money from scouring inflation and benefit from the difference between the old and new prices, you can choose gold investment. Meanwhile, for those of you who have large capital and want to get profits in a short time, property investment can be the right choice.
3. Set Your Investment Goals
Before you decide to invest, you should first determine your investment goals, whether to buy a house, finance your child’s schooling, buy a dream car, or something else. Setting goals can help you focus on investing and not be easily tempted to disburse investments before reaching the goals you set.
4. Don’t Put Your Funds On Just One Investment
For novice investors who are still learning and looking for the right investment instrument, it is advisable not to place their funds in one investment instrument only. In addition to reducing risk, it is also to provide an opportunity to learn about various types of investments.
5. Determine the Investment Goal
Before starting to invest, you need to determine your investment goals first. For example, you want to prepare an emergency fund, take a vacation with your family, get married at the age of 28, buy a private vehicle, or pay for your parents’ pilgrimage.
Investment goals aim to build your commitment to achieving your goals. If you don’t have a goal, then you can lose motivation, don’t invest consistently, and don’t know the purpose of allocating investment funds.
6. Adjust Investment with Risk Profile
Beginner investors must adjust their investment objectives, investment period to their risk profile. Beginner investors who want to invest in low-risk mutual funds can choose money market funds. This short-term investment instrument is the right choice for investors who want to prepare emergency funds or invest in the short term of 1-2 years.
If you are a long-term investment and a risk taker, then you can choose a stock mutual fund investment that has a high risk. Despite having a high risk, these mutual funds offer returns that tend to be higher than other types of mutual funds in a period of 5-10 years.
However, moderate investors who plan to invest in the medium to long term can choose fixed income funds or mixed funds. This mutual fund product is the right choice for preparing vacation savings, wedding expenses, or a down payment for your dream home.
For example, you have set a house down payment of Rp. 75 million three years later. Now, you can choose money market or fixed income mutual fund investment products that have stable returns than stock mutual funds.
That’s Investment Tips For Beginners you must to try.