4 Investment Instruments For Pension Funds, Don't Get The Wrong Choice!

Illustration (Photo: Pixabay/OleksandrPidvalnyi)

YOGYAKARTA If you want to achieve financial freedom in the future, you need to set aside some income to invest. By placing funds into investment instruments for pension funds, your assets will increase. In addition, you also have the opportunity to get better profits from the percentage increase in investment assets you run.

So, what are the right investment options to prepare pension funds? Summarized from various sources, Monday, June 19, 2023, here are some options.

The choice of investment instruments for the first pension fund is mutual funds. You can choose what type of investment portfolio you want to have in mutual funds as a means of realizing your retirement fund plan.

By choosing mutual funds, you don't have to bother managing the funds that have been invested. The reason is, your investment management will be run by investment managers.

An investment manager is a professional management or institution that has the task of managing your investment activities.

Shares are investment instruments that offer relatively larger profit profiles than other investment instruments. However, the opportunity to gain big profits is also directly proportional to the risk profile.

It is known, stocks are investment instruments that have high risk. One of the risks of investing in stocks is capital loss, which is a condition where investors sell stocks lower than the purchase price.

Even though the risk is high, you don't need to hesitate to start investing in stocks. Because, now you can buy shares with relatively small capital. In addition, the share ownership regulation has also changed from 500 shares to 100 shares.

In addition, you can also use brokerage services or stock brokers to manage your shares, while seeking more in-depth knowledge regarding managing stock investments for pension funds.

Bonds include investment instruments for pension funds. Bonds tend to provide investment benefits that remain in accordance with the interest that has been approved at the beginning of their purchase.

This means, you can predict the returns from the capital you distributed at the beginning of the investment.

Bond investment also has a variety of periods of time, namely long-term and short-term. If you choose bonds as an investment means to prepare pension funds, it would be better if you used a long-term investment time scheme.

One of the bond products that is quite promising as a pension fund investment is the Indonesian Retail Bond (ORI). ORI can provide you with returns or profits of up to about 8 percent each year. If the asset value of ORI increases, you also have the opportunity to receive a profit of greater than the 8 percent predetermined.

Deposits can be the main choice to achieve financial freedom in the future. This is because deposits offer a fairly stable advantage compared to other investment instruments.

In addition, deposits are also like savings. So that you can allocate a monthly pension fund capital in less than a large amount.

Thus, you don't have to worry that the investment made to prepare for retirement funds will interfere with daily needs.

This is information about investment instruments for pension funds that you can choose to achieve financial freedom in the future. Hopefully this article can add insight to VOI.ID readers.