Talking about the type of investment for beginners, it’s actually not too different from instruments for those who are already pros.
However, because they are still just starting out, usually a beginner chooses the type of investment that is low risk.
However, it is possible for a beginner to immediately want to choose a high-risk type of investment.
Even if you are a beginner, you can still choose any instrument, from mutual funds to property.
You need to remember that the main key in making investments to be successful is never to take small things lightly.
Small things can have a big impact on your investment profits, and vice versa can make losses.
In this article, we will discuss not only the types of investments that are suitable for beginners, but also help you on how to invest in order to make a successful profit.
Types of Investment for Beginners
First, let’s first know the recommendations for investment instruments from KoinWorks which we think can be done even by beginners.
Mutual Fund Investment
Mutual funds are an investment that is suitable as an alternative for beginners, especially if you don’t have much time and expertise to calculate the risk of the investment being carried out.
The minimum value to participate in mutual fund investments is also relatively low, starting from IDR 100,000.
There are many types of mutual funds that you can follow, from the money market, fixed income, to the stock market.
Before starting to invest, make sure you learn how to invest in mutual funds so that you understand the investment flow that you are going to live.
The investment funds that you allocate will later be ‘played’ by the Investment Manager, so choose the right mutual fund destination.
Don’t forget to also read the prospectus and understand the intricacies behind it.
How to Invest in Mutual Funds?
There are two ways you can do this, namely buying directly through certain banks, or platforms that serve mutual fund investments.
As a beginner, we recommend you to buy mutual funds online, because it is easier to do.
Here’s how:
- Choose a mutual fund investment service provider platform that suits your needs. There are now many, you know, services that can be accessed through mobile phone applications.
- Register your personal data in accordance with the provisions that apply to the mutual fund service you choose. Usually you need to enter your personal data to upload a photo of your ID card.
- Register a personal bank account that can be used to send funds when you want to buy mutual funds and as a destination account to send funds from the sale of mutual funds.
- Make a deposit of funds to the platform used.
- Choose the type of mutual fund that matches your risk profile.
- Enter the amount of money you want to invest (usually a multiple of IDR 100,000).
- Complete the form provided.
- Don’t forget to read the terms & conditions as well as the prospectus.
- Usually you will be asked to click the confirmation button, then you can continue the purchase.
- The purchase process usually takes 1-3 days and holidays outside working hours.If you have started investing, later you will be familiar with the terms Participation Unit (UP) and Net Asset Value (NAV).
How to calculate mutual fund investment profits is actually quite easy.
Illustration
NAV for A is IDR 1,500. So if you buy 1,000 UP, you will buy it at a price of Rp. 1,500,000.
At the end of the year, if the NAV for A increases to Rp. 2,000,000, then you make a profit of Rp. 500,000.
If the NAV drops to IDR 1,100,000, it means a loss of IDR 400,000.
The most appropriate recommendation when NAV drops at the end of the year is not to sell it first so you can reduce losses.
Stock Investment
The next investment is stock investment.
In recent years, many young people have learned how to invest in stocks and have started investing in stocks, this is because access to the stock market is now easier.
In fact, now it can be done via cell phone.
Currently, there are also many securities companies that can be accessed to register and start contributing to the stock market.
The advantages of stock investment that can be obtained include buying and selling each ownership and also dividends from companies whose shares we own.
How to Invest in Stocks?
In the past, if you wanted to invest you had to call the stock exchange to buy a stock.
But, nowadays, you can see how stocks perform in the market, to buy and save capital through an application on your cellphone.
Therefore, nowadays many beginners are already literate in investing because it is easier to do.
Here’s how to invest in stocks online.
Gold Investment
Gold investment is arguably one of the easiest types of investment to start. Simply put, stock investment can be defined as physical ownership of gold bullion, it can be in the form of Antam’s gold, or by value on an online platform that is engaged in gold investment.
Property Investment
In addition to learning how to invest in stocks and gold, you can also learn about property investment.
Investing in property does require a large amount of money. However, the benefits that you will get will also be large in the long run.
Besides you can create passive income with property assets, you can also make it an investment that can be sold in the next few years.
Try investing with two types of profitable investments and investments that are suitable for beginners above slowly while raising capital, or you can alsostart a business .
Slowly, when you have enough funds, try buying a simple house but located in a strategic area. There are many houses that you can buy with prices starting from IDR 450 million.
You can then rent the house so that you have an income every month or year.
When buying a house, try to buy a house in an area that has the potential to develop, such as the area around which transportation projects will be built, road widening, and so on.
The house that you buy will increase in value in the long run, especially because it is in a strategic and growing location, it can experience an increase in price of around 15% to 22% every year.
Or if you intend to rent it out, the rental price usually has a range of 4% to 10% per year.
For example, you buy a house for Rp. 400 million in Bandung, then you rent it out for Rp. 16 million per year to newly married families who usually still have limited finances, you can earn passive income from these assets of Rp. 16 million every year.
In addition to getting passive income , the price of the house will also gradually increase. If the price of the house increases by 15% every year from the initial price, it means that in 10 years the price of the house will be:
IDR 400 million x 15% = IDR 60,000,000
IDR 60,000,000 x 10 years = IDR 600,000,000
That means, in 10 years, your assets will be:
IDR 400,000,000 + IDR 600,000,000 = IDR 1 Billion
To get these assets quickly and invest in them, you certainly have to raise funds.
If you don’t have the funds right now, you can apply for a mortgage to the bank and rent it immediately, so that the mortgage installments can be paid with the help of the tenant’s rent.
Well, those are 4 types of investments that are suitable for beginners that are worth considering. But don’t be in a hurry, it’s a good idea to understand what investment is really suitable for you, both in terms of risk, capital, and the various technical analyzes needed.
One more thing, before investing, make sure you have financial protection, namely in the form of health insurance or health insurance .
In Indonesia,P2P Lending funding may still be new and many people may not be aware of its existence.
In P2P Lending , you as a lender can channel funding to borrowers according to the purpose of the loan.
P2P Lending is not specifically an investment instrument, no, but a means to help people who need capital and get returns from it.
This kind of funding activity is very profitable. Especially at KoinWorks, you can get effective interest starting from 18% per year.
The higher the risk level of your funding, of course, the higher the profit interest you will get.
And just like investing in mutual funds,online P2P Lending funding at KoinWorks can alsostart from IDR 100,000 .
The difference is, at KoinWorks, you can decide for yourself who you will invest in based on all the information contained in the factsheet of each borrower.
Your funding tenor can range from 6 months , 12, 18, to 24 months. And of course you can choose your own time period according to your needs.
If you fund at KoinWorks with a nominal value of IDR 1,000,000 and 12% profit interest in a year, you can already get IDR 1,120,000 in the first year.
And even then for funding with the lowest risk and not including the compounding effect . Calculate your funding profit with the following calculator .
Or if property investment is not suitable for you because you don’t have enough funds, try funding at KoinP2P at KoinWorks , because with IDR 100,000, you can get effective interest starting from 18% every year.
Things to Pay Attention to Before Investing
If you are interested in investing, there are several important things that you need to consider before deciding to invest, namely:
Your Purpose of Investing
Before investing, it’s a good idea to plan a clear investment goal. If you have clear goals and run systematically, it is very likely that the business you manage will run smoothly until it reaches success.
Many investors fail because they only think about the profits they will achieve but do not plan clear and systematic investment goals.
One of the good investment plans is to plan an adequate investment business financial pattern so that the business you run will not be disturbed by unnecessary financial constraints.
Calculate Your Income
It is very important to manage the income you have by recording all types of financial income in detail. By deducting all the income you have, you will know about your financial condition.
If you already know your financial condition well, then you can adjust the amount of capital you will provide for your business. Make sure your financial condition is in a stable state.
Because if your financial condition is still in an uncertain state, the investment business that will run will not run smoothly.
Debts Receivable You Have
Accounts payable is also something you need to consider before making an investment. Many business people fail to run their business because they ignore this.
In the business world, it is very important to have the ability to manage finances by setting the right and accurate strategy when investing capital.
If you still have a lot of outstanding debts that have not been paid, then you should pay them off first, because it could be that these accounts payable will be an obstacle that can interfere with the investment business you are running.
How many assets do you have
This valuable asset that you have will be your initial capital in getting investment benefits in the future.
The more assets you have, the greater the profit you may get because you don’t need to look for other sources of funds to invest.
That way it is very important to multiply valuable assets so that the stability of the business you run will increase. Therefore, it is highly recommended to multiply valuable assets to make it easier for you to invest.