Type of Investment Based on the Type

CategoriesGeneral Article

•Savings

This is a type of investment made by storing some money in a bank, this money can be used later in life and its value will increase because there is bank interest.

• Gold

Gold or precious metals is one of the most popular investments in Indonesia. The excess investment in gold, among others, gold is a liquid asset that is easily sold. While the risk of gold investment, among others, is difficult in its storage.

• Deposits

Deposit is a deposit of money for a certain time, if the money is taken before the time of the agreement it will get a penalty or a fine. Interest received from these deposits is greater than savings.

• Bonds

When you buy bonds, it means you are lending money to companies or the government. The agency will return your capital while providing interest for your loan. The main attraction of bonds is the security of investing by ‘lending money’.

If you buy bonds from the government, your investment can be said without risk. The security and stability of bonds, of course, have their weaknesses, namely the low potential return you will get so that it can be said that bonds are investment vehicles that have low returns.

• Mutual funds

Mutual funds are a place to raise personal funds in a particular company and then the money will be used for investment by experienced investment managers. So, for mutual funds you don’t need to learn about investing, just entrust your money to professionals who have been in the field for quite a long time.

• Property

Property investment is an investment in certain goods. The most frequently used property investment media are houses and land. This immovable property price also tends to rise every year, therefore many houses and land are used as investments.

• Stocks

Shares are securities that prove that you have ownership of a company. The shares that we invest will be used as capital for company development. Shareholders will benefit from dividends (dividing a portion of the company’s profits according to the value of its shares).

Investment Objectives

From the explanation above, it can be concluded that in general the investment objectives are to:

• Get a fixed income in each period. For example, such as interest, royalties, rent and others where the income can be used for living needs.

• Get special funds, for example those funds are used for social purposes, expanding businesses and others.

• Guarantee the availability of raw materials and obtain a market to sell products that have been produced.

• Control the company by means of ownership of the company’s assets.

• Reducing competition between companies engaged in the same field.

• Maintain good relations between companies and branch companies.

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