Bahana TCW Investment Management Gives 5 Tips To Start Investment For Beginner Investors In 2024

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JAKARTA - In 2024, the global economy is predicted to experience an era of lower interest rates. This happened after in 2022 and 2023 central banks in various countries implemented relatively high interest rates in response to high inflation. PT Bahana TCW Investment Management (Bacana TCW) sees this condition as the right condition for novice investors with conservative investment risk profiles to start their investments.

Director of Bahana TCW, Dania Adhuka, said theoretically that when the trend of lowering interest rates, deposits would experience a decrease in interest. This is because the rate of deposit interest will adjust to the decline in interest rates. At the same time, the mutual fund investment instrument which has an investment portion in the form of bonds in it will be attractive.

The relationship between interest rate changes and bond prices has opposite characteristics. When interest rates rise, bond prices tend to fall, and vice versa, when interest rates drop, bond prices tend to rise. This concept is known as an inverse relationship or an inverse relationship with its origin function between interest rates and bond prices.

"Conditions like this are a suitable time for novice investors to start their investments. In 2024, Mutual Money Market Funds and Fixed Revenue Funds are one of the prospective investment instruments because they have a relatively well-maintained risk and are very suitable for beginners. So this year is a suitable year to start investment," said Danica, in a written statement, Friday, February 16.

Here are some tips for novice investors to start investing in available investment instruments:

Get To Know Risk Profiles

Recognizing the risk profile is necessary to find out the extent to which investors can tolerate investment risks. In addition, the risk profile can be a tool when planning an investment.

"The first requirement to start investing, at least investors must recognize their respective risk profiles. As an illustration, beginners with conservative risk profiles can start investing with investment instruments such as Money Market Mutual Funds which have a relatively safer risk and without tax deductions of 20% (twenty percent) like deposits. Given that bonds will be prospective this year in accordance with the trend of lowering interest rates, beginners with conservative to moderate profiles can start investing in Fixed Revenue Funds with bond instruments in them," said Danica.

Determining Budget

Ideally, the budget for investment must have been planned from the start. This means that every investor must allocate the budget from the start which is taken from personal income, not from the remaining income after deducting various other routine needs.

This will help investors to consistently invest and assist in planning to achieve their investment goals.

Understand Investment Features

Each investment instrument has different features. Starting from the instruments in it, the timeframe, the level of yields or coupons and other features. By understanding these investment features, investors and customers can adapt to their abilities and help investors achieve their investment goals.

Understand Economic Conditions

Investment instruments are closely related to both domestic and global economic conditions. The condition of global inflation, interest rates and the economy in general will affect investment performance both directly and indirectly.

Conducting a comprehensive analysis of economic indicators for the general public may be difficult, in relation to investment decisions that will be taken as investors. For this reason, the public can take advantage of investment manager companies that have expertise and experience in managing investment.

Portfolio Diversification

After investing, investors need to diversify. Diversification itself is a step to buy several types of investment products to avoid losses if one of the instruments is experiencing less than optimal performance.