YOGYAKARTA - Short-term investment is the most preferred type of investment in the current era. Especially when more and more young people are starting to become financially literate. Short-term investment is referred to as a way of financial management to achieve financial freedom.
Investment is the activity of allocating what is owned, such as money, to obtain additional returns or profits in the future. There are various instruments from the application itself, such as gold, mutual funds, to bonds. Meanwhile, there are assumptions about the type of investment, namely long-term and short-term investments.
In investment, there is risk and return. Risk is the loss experienced. while the return is the profit earned. Usually what makes people afraid and not willing to invest is the risk. If you want to invest with low risk, then the short-term investment is the choice.
Short-term investments have a low level of risk. But it also goes hand in hand with a low rate of return as well. Short-term investment is the right choice for beginners or those of you who have a minimal budget.
Example of Short-Term Investments
Short-term investment does not mean that it is not as good as long-term investment. The only difference between the two is the withdrawal period. Many investment experts advise that it is better to get small but consistent results than to get big but unsustainable results.
There are several short-term investment instruments that are in great demand in Indonesia. The following is a list of safe short-term investments and the right choice for beginners.
Deposito
One of the short-term investment instruments suitable for beginners is deposits. Deposits are short-term investment instruments owned by banks to accommodate customers who want to deviate from money or investment.
Time deposits have an investment period of a certain period in accordance with the terms agreed upon by the customer and the bank. The period of time is from 1 month to 12 months.
The investment capital required for deposits is a minimum of IDR 5,000,000 with a higher interest rate compared to savings. The deposit interest rate itself is at 3.37%. The longer the time period chosen by the customer, the higher the interest paid by the bank.
Mutual Funds
The second investment instrument is mutual funds. Mutual Fund investment is suitable for small investors and investors who don't have much free time. If you do not have a lot of time and expertise to analyze the risk of investment funds, then this instrument should be your choice.
In Mutual Fund investment, investments are managed by Investment Managers (MI) to be invested in investment portfolios, such as equity, bond, and money market mutual funds.
Mutual funds are a way of investing by diversifying, or splitting investment funds into several instruments. This type of investment instrument must be invested in several companies and not enough in one company.
Diversification provides a low level of risk on the overall investment. Each investment instrument has a different interest rate. For example, there is a decline in shares in one company, at least not all of the invested investments will experience losses.
Forex Trading
Short-term investment Forex trading is a form of investing in buying and selling foreign currencies. Forex trading has been an investment trend since time immemorial. This investment has a high-risk high-return system.
Forex trading is said to provide high profits to investors. However, this investment also carries an equally high risk. How to invest is not difficult. You just need to buy a certain amount of foreign currency then hold it for a while and resell when the price goes up.
For those of you who are still beginners, it is recommended to choose currencies that tend to be stable, such as the US dollar, Euro, and Pound sterling.
Shares
Stocks are also a short-term investment option for beginners. This investment is said to provide a fairly high return for investors. Just like forex trading, stocks have a high-risk high return system.
You can start investing in stocks easily because there are many companies in Indonesia that open slots for investors. But you need to prepare a large enough capital if you want to buy shares of companies that are relatively stable or often called blue chips.
Peer To Peer Lending (P2P Lending)
The next short-term investment option is Peer to Peer Lending or P2P Lending. This investment is suitable for those of you who want to invest with diversification. With P2P Lending, you will become a lender. You lend funds to borrowers (borrowers) at a predetermined interest rate.
The P2P Lending loan period starts from 1 to 12 months. After the tenor ends, you can get your initial investment funds along with the interest. Most of the borrowers are Indonesian SMEs who need business capital loans.
Those are some examples of short-term investments that beginners can choose from. Make sure your investment choices match your needs and funds.
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