By investing, we can realize financial goals according to our needs. In investment, funds are rotated so that they produce a larger amount and are done by investing capital. Each person makes investments with different financial goals. When distinguished by their goals, there are several types of investments for beginners that need to be known, here is the explanation.
Types of Short Term Investments
This type of investment for beginners is done in the short term and if you need funds in the near future, starting from one to three years. In this type of investment, it is usually done for purposes such as vacations, to renovate a house or for emergency funds. If you want to make a short-term investment, then you should invest in instruments that have low risk.
Short-term investment when compared to other types of investment has a relatively small profit. Even so, the profit obtained from this type of investment is still much greater when compared to regular savings made in banks.
Examples, advantages and disadvantages of short-term investment types:
- Deposits , which are bank products where you can deposit savings and also withdraw a certain amount of funds within a short period of time ranging from 1 month to 2 years.
- Mutual funds , which are investment products where the funds you deposit will be managed by an investment manager to make a profit.
- The downside is that you have to frequently monitor the progress of the investment instrument value because the time period is short.
- The advantage is that this type of short-term inves database shop tment can be used as your savings or as an emergency fund, besides that, the profits that will be obtained will certainly be faster.
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Types of Medium Term Investments
The next type of investment for beginners is the medium term which is carried out in a period or time span of three to ten years. This type of investment has the potential to be able to get passive profits and is quite safe in that time span. Because the time period is longer when compared to short-term investment types, this investment can be done with the aim of financing needs for a longer period, such as for example for education costs or it can als how to recruit the ideal community manager? 4 secrets revealed! o be used to pay for a house down payment.
Examples, advantages and disadvantages of medium-term investment types:
- Indonesian Retail Bonds (ORI) are investment products offered by the government in the form of Government Securities.
- Retail Sukuk is an investment product that is the same as ORI but is sharia-compliant because it offers Sharia State Securities.
- The downside is that this type of investment has an inflation risk if people’s purchasing power decreases due to several factors such as rising prices of necessities in the market.
- The advantage is that medium-term investments have greater profits than short-term investments and can be saved for the future.
Types of Long Term Investments
The last and no less important type of investment bz lists for beginners is long-term investment. This investment has a longer time span, which can be more than 10 years. If you have goals or needs in the future, such as for retirement fund preparation, costs to buy a house or for children’s education, then this type of investment is suitable to choose.
With this type of investment, you can get bigger profits compared to other types of investment, but also with a level of risk that is definitely much bigger.
Examples, advantages and disadvantages of long-term investment types:
- Gold , which is an investment instrument that is common in society and has been proven to have a large profit value, is of the pure gold or precious metal type.
- Stocks , which are investment instruments where proof of capital ownership is from securities. That way, you will have ownership rights to an asset or company that issues the shares.
- The downside is that the fund disbursement process tends to take longer than other types of investment and needs to be analyzed more deeply because of the long time.
- The advantage is that it can be used as preparation for savings in old age because the profits continue to increase over time and have a lower risk tendency.
That is an explanation of the types of investment for beginners based on their goals and timeframes. You must understand well and seek information about investment before starting it in order to achieve the desired goals. If you want to invest, make sure you can also meet other important needs, such as for daily living expenses and education costs.
Smooth Investing for Beginners and Educational Needs Still Fulfilled
If you want to focus on meeting your daily needs and at the same time also make investments, there is nothing wrong with looking for educational financing to be a solution to meet educational costs. One of the trusted, safe and reliable platforms that can be submitted is Danacita.
Danacita is a financial and technology company founded in 2018 in Indonesia that has helped many students in reducing education costs. The services provided by Danacita are college installments and have been in more than 100 campuses throughout Indonesia and have been officially supervised by the Financial Services Authority. Danacita has also been equipped with a high-level security system certified by ISO 27001. In addition, since August 2, 2021, it has also been given a permit letter number KEP-68 / D.05 / 2021 in the Provision of Information Technology-Based Money Lending Services.
The term offered by Danacita ranges from 6 to 24 months and without any down payment or security deposit. Students do not need to worry about interest issues, because Danacita offers flat interest so it does not become a burden on the mind. The method of applying for installments is also easy, because it is virtual, just by creating an , then completing the profile and applying for financing. In addition, students can also re-apply for installments for the next semester even though there are still installments that must be completed.
In achieving your dream of getting a higher education, you don’t need to worry anymore because Danacita is ready to help with education costs and has become an official partner of many well-known universities and other course institutions, so it is definitely safe and reliable.
