The Ministry Of Finance Reminds The Public To Choose Investment Instruments According To Financial Goals

Director of State Securities of the Directorate General of Financing and Risk Management (DJPPPR) of the Ministry of Finance Deni Ridwan. (Photo: Doc. Antara)

JAKARTA - Director of Government Securities of the Directorate General of Financing and Risk Management (DJPPPR) of the Ministry of Finance Deni Ridwan reminded the public to choose investment instruments that are in accordance with financial goals to avoid losses.

"When we talk about investment strategies, first, the goal first. Is it short, medium, or long. Then we adjust it, which (investment instruments) are suitable," Deni said in Jakarta, quoted from Antara, Friday, February 16.

In implementing an investment strategy, Deni cited a philosophy that football coach Alex Ferguson once said was "attack wins you games, defense wins you titles". The statement emphasized the importance of building a defense if you want to become a champion.

Deni said that steps to strengthen defense need to be taken in investing to prevent losses. Therefore, he advised the public to choose conventional investment instruments first because they are relatively safer.

"The important thing is that this investment will provide higher returns than inflation. What is safe?, maybe deposits, retail Government Securities (SBN), or gold. It's an investment that may not lose," he said.

If the defense is strong, continued Deni, the public can enter into investment instruments with medium or higher risk than conventional ones. Several examples of investments that can be chosen include fixed income mutual funds, mutual fund shares, and corporate bonds.

In the next stage, explained Deni, investors can enter into more "attracking" investment instruments or with increasingly high risk such as stocks and cryptocurrencies.

Deni argues that a defensive or conventional portion of investment tends to dominate over a person's age. Meanwhile, the portion of conventional investment in young people tends to be smaller because this age group is more daring to take risks.

Even so, the portion of investment must still consider the risk preferences of each individual. So, said Deni, it is not wrong if there are young people who have lower risk preferences so that they will invest more in relatively safe instruments.

"Once again, the decision for what percentage (ports) is conservative and what percentage is more at risk is usually adjusted to age and also to risk preferences," he said.

According to Deni, the younger generation must cultivate the habit of investing regardless of the nominal. In fact, with only Rp. 1 million, novice investors can already have Retail State Bonds Series 025 (ORI025) which was recently issued by the government with fixed rates starting from 6.25 percent per year.

"Some say, investment is only for the rich. That's wrong. It's precisely because we have a little money, that's why we have to arrange it so that we can get optimal benefits. Moreover, the current presence of technology is actually an option for us to invest more," said Deni.