Which type of investment is the most profitable, promising and of course it must also be safe, at least it has a small risk, although it is well known.
This means that the greater the risk of investing, the greater the chance of profit to be obtained later.
There are various types of investments aimed at obtaining financial benefits and broadly they have been divided into 2 groups, namely short-term investments and long-term investments.
For the types of financial products themselves, the most popular and well-known for the Indonesian people as investment facilities include:
• Time Deposit
• Unit links
• Mutual Funds
• Stocks and many other types
4 forms or types of investment that are promising, safe and quite profitable
The following is a review of 4 examples of investments in accordance with the level of risk borne, but in proportion to the profit (profit) that will be obtained.
Type of cash investment
In the form of cash funds, it can be understood that this promising investment is not much different or similar to ordinary savings, deposits, and mutual funds.
With a very small level of risk, the profit opportunities that can be obtained are only in the range of 6% per year of the amount of funds invested.
As a simulation, we take for example if an investor saves 100 million in money, then within a year, he will only earn a profit of 6 million or around 500 thousand for each month.
Knowing more about how to calculate, as well as how much interest will be obtained from the deposit and savings investment model, you can read more in our article that reviews how to calculate interest on savings and bank deposits.
Fixed income investment
Understanding this type of investment, investors are usually offered in the form of bonds or debt securities and fixed income mutual funds.
The advantage of this type of investment is that it can provide fixed income for investors, it can be every month or it can be yearly.
The profit that will be obtained by the investor will not be greater than the type of cash investment. However, this second option has the advantage of having a minimal level of risk if there is a global economic turmoil, especially the money market, then the value of the investment that has been entered will not be at risk of being lost or reduced.
The benefits that can be obtained when investing in Fixed Income Mutual Funds are:
• Investment diversification. Investments will be spread across a variety of instruments, securities, time deposits and medium and long term bonds so as to provide more optimal results.
• Professional Research Team. Investor funds will be handled by a professional investment manager research team who can provide a bond investment portfolio with optimal returns.
Stock investment (capital market)
The stock business or the capital market is not a new thing for the middle class or even ordinary people. Shares can be interpreted as evidence of ownership of a particular company.
The types of shares are divided into two groups, namely public company shares and closed company shares.
Like the form of a franchise business or for example the type of home-based business in which you take part in the capital, then this is included or can be referred to as the shares of a closed company.
Meanwhile, the public company shares are usually those with a fairly large market capitalization value.
Even though it is an investment that has a big risk, this option is a very profitable type of investment and is very tempting because it has a better chance to achieve a fairly high profit.
How to Invest in the Capital Market
At least after we understand a little about the basic rules of investing and opening a customer’s securities account, what must be done when investing in the capital market is by:
• Through the Primary Market.
Some people often refer to this as the Primary Market. This is the time when the company first sells its shares to the general public. This is also known as an Initial Public Offering (IPO) or Go Public.
The concept is from a closed company that was initially only owned by a few people, then turned into a public company that can be owned by many people.
They usually announce the sale in various national print media in the form of a prospectus.
Investors also need to know that there is usually a certain period of time applied to the sale of shares in the Primary Market. So these business people must immediately know when the time limit for buying shares in the Primary Market will expire.
• Through the Secondary Market
Is a form or process of buying and selling transactions in the form of stock values from one investor to another, this is called a Secondary Market transaction, and this transaction should be carried out in a special place, which is commonly referred to as the Stock Exchange.
So as investors, they can buy shares with intermediaries through broker services, which will be charged a rate or have to pay some kind of fee to the broker as a form of ‘honor’ they get for their services.
Investment in the form of physical assets
This type is a form of saving valuable tangible (physical) assets such as gold, diamonds, and other properties.
Profit opportunities are very varied depending on the selected assets and economic conditions that occurred at that time.
“An investor who chooses this type of investment will have full control over the assets he owns”
When viewed from the category, this option is included in the form of long-term investment, which is more or more over time, the selling value of the asset will usually also continue to increase.
So, after looking at the 4 types of investments above, it can be concluded that one of the very safe and profitable investments is the last point, namely the investment in the form of assets or physical.