investment is a deposit of money in order to obtain the expected return is greater than the deposit rate to meet the objectives to be achieved by a predetermined time period and in accordance with the ability to be capital. Or it can be interpreted also as a sacrifice in the form of delay spending now to make a profit (return) the better in the future.
In other words, more simply, investing is a way for someone to manage his money well it is a property bought, saved or put into a venture with the purpose of obtaining benefits after a period / periods are determined earlier.
Forms of investment :
In everyday life there are some forms of investment that we know, among which are:
1. Investment property
Investment property can be planting some money in the form of property, the most common thing is usually done in gold, house or land.
2. Investment in equity
Equity investments are generally associated with the purchase of shares of stock and store in a capital market by individuals and funds in anticipation of income from dividends and capital gains as the stock value increases. It is also sometimes associated with the acquisition of equity (ownership) to participate in a private company (not listed) or a new company (a company being created or newly created). When the investment is made in the new company, it is referred to as venture capital investments and generally understood to have a greater risk than investment situations where the shares listed on the stock performed.
3. Investment Risks
Typically, there are three risks that most people fear when they will make an investment, namely:
The fall in value of Investment
The most feared risk when investing in general is "Will my money be lost?" Most people may answer "no" if asked like that. Because no one is willing to lose money. However, any investment there must be risks. They differ only in size. There are investment products that the risk is big enough, there are, some are small.
Now if you invest, we must consider how much you are willing to decrease the value of responsibility if you lose? 10 percent? 20 percent? 50 percent? Or 100 percent? Regardless of the loss you are willing to bear, remember that it is part of investing. Do not ever expect you will continue to profit. The so-called loss, occasionally we have a natural indeed. Due to the presence of losses, it is experience that makes us so much to learn in investing.
Difficult it was for sale and Investment Products
The second most feared risk when investing is whether the investment product that is bought it is easy to be sold / refunded. Some people may be happy to invest in gold because gold is considered easy to resell. However, there are also people who invest in U.S. dollar currency, and dollars are quick inclusion to the bank. This is because when the dollar was kept in the closet, then the physical condition of paper money may be decreased, and it will sometimes be difficult when one day the dollar was to be sold again. Understandably, some banks often do not want to receive or buy your foreign currency when the condition of the money is physically torn, damaged or crumpled.
Another example of an investment product that is not always easy to resell are collectible items. Collection of goods is generally not easy to resell because the buyer the goods market is very specific. Painting, for example. Because of the specific market, namely those who will be painting hobby as well, not always easy to sell the painting. But, once sold, can be very high prices and provide a decent profit for those who sell them.
So, before you decide to invest, you should know first how easy investment products can be sold back. Do not let you invest but can not sell it, because things are hard to sell.
Investment Results Provided Not Amounting to Increase Prices of Goods and Services
Imagine if you invest in time deposits that provide 10 percent interest a year, whereas in the year the price of goods and services rose 15 percent instead? This often happens, not because of too high prices of goods and services, but because the selected product itself is not necessarily appropriate.
Maybe some of you want a product that is safe and conservative investments. However, the consequence is that the investment results obtained might not be able to match the rising prices of goods and services. If it continues you experienced from year to year, then you will go bankrupt.
What should you do to deal with this risk? Do not close yourself to the information. Learn about other investment products that you may not know, and then try to go into it by considering all the consequences. Over time, you certainly can cope with the high rising prices of goods and services by investing in products that are potentially able to deliver higher yields than the price increases.
How to Reduce the Risk of Investment
To reduce the risk, the easiest way is to invest in various investment vehicles. This method is called to create an investment portfolio. The purpose of this method is to reduce investment losses that may arise from an investment vehicle with a closed using profits earned from other investment vehicle. For example, investing in mutual funds and on savings. If they do not benefit the investor will suffer losses. But what if one of them at a disadvantage, for example, the value of mutual funds down or liquidated banks? With the loss of this portfolio is expected that one of the investments can be reduced by gains from other investments. If both lose, it means that temptation if investors use the investment in Shariah and maybe a warning or punishment even if it is not sharia-compliant investments.
So the core reduces the investment risk is the portfolio: "do not lay many eggs in one basket" because if dropped, then the eggs will be more broken than if placed in some other basket if the basket does not fall.
Investment Products
In general, investment products are grouped based on the results into two groups, namely:
Fixed Income Investment products (fixed income investment), which is an investment product that is certain to give income (usually called interest), and the money you invested will not be reduced in value. Example: Deposit and Savings Bank.
Investment Growth (growth income investment), which is an investment product that does not give definite results in the form of interest, but only returns when resold at a higher value. Example: stocks, gold, home, collectibles, foreign currencies. The risk of a product like this is money you invest can be reduced if the value the investment products it sold at a lower price than the price when you buy it.
Investment Decision Process
Investment Decision-making process is continuous (on going process) with the following stages:
Determination of investment objective
In determining the purpose of investing there are several things to be aware of the investment period (short / long), how the target return will be achieved.
Determination of Investment Policy
Investors should understand the character of risk (risk profile) respectively if one wants to take the risk or avoid the risk, how much funding will be invested, investors flexibility in time to monitor the investment, knowledge of capital markets.
Selection of portfolio strategy and asset
After knowing the things in points 1 and 2 above, then we can form a portfolio which is expected to efficiently and optimally.
Measurement and evaluation of portfolio performance
Measuring the performance of portfolios that have been established, whether it is fit for purpose. Tool to measure the performance of the portfolio there are 3 that are quite popular measures of Sharpe's, Treynor's measures and Jensen measures.
In other words, more simply, investing is a way for someone to manage his money well it is a property bought, saved or put into a venture with the purpose of obtaining benefits after a period / periods are determined earlier.
Forms of investment :
In everyday life there are some forms of investment that we know, among which are:
1. Investment property
Investment property can be planting some money in the form of property, the most common thing is usually done in gold, house or land.
2. Investment in equity
Equity investments are generally associated with the purchase of shares of stock and store in a capital market by individuals and funds in anticipation of income from dividends and capital gains as the stock value increases. It is also sometimes associated with the acquisition of equity (ownership) to participate in a private company (not listed) or a new company (a company being created or newly created). When the investment is made in the new company, it is referred to as venture capital investments and generally understood to have a greater risk than investment situations where the shares listed on the stock performed.
3. Investment Risks
Typically, there are three risks that most people fear when they will make an investment, namely:
The fall in value of Investment
The most feared risk when investing in general is "Will my money be lost?" Most people may answer "no" if asked like that. Because no one is willing to lose money. However, any investment there must be risks. They differ only in size. There are investment products that the risk is big enough, there are, some are small.
Now if you invest, we must consider how much you are willing to decrease the value of responsibility if you lose? 10 percent? 20 percent? 50 percent? Or 100 percent? Regardless of the loss you are willing to bear, remember that it is part of investing. Do not ever expect you will continue to profit. The so-called loss, occasionally we have a natural indeed. Due to the presence of losses, it is experience that makes us so much to learn in investing.
Difficult it was for sale and Investment Products
The second most feared risk when investing is whether the investment product that is bought it is easy to be sold / refunded. Some people may be happy to invest in gold because gold is considered easy to resell. However, there are also people who invest in U.S. dollar currency, and dollars are quick inclusion to the bank. This is because when the dollar was kept in the closet, then the physical condition of paper money may be decreased, and it will sometimes be difficult when one day the dollar was to be sold again. Understandably, some banks often do not want to receive or buy your foreign currency when the condition of the money is physically torn, damaged or crumpled.
Another example of an investment product that is not always easy to resell are collectible items. Collection of goods is generally not easy to resell because the buyer the goods market is very specific. Painting, for example. Because of the specific market, namely those who will be painting hobby as well, not always easy to sell the painting. But, once sold, can be very high prices and provide a decent profit for those who sell them.
So, before you decide to invest, you should know first how easy investment products can be sold back. Do not let you invest but can not sell it, because things are hard to sell.
Investment Results Provided Not Amounting to Increase Prices of Goods and Services
Imagine if you invest in time deposits that provide 10 percent interest a year, whereas in the year the price of goods and services rose 15 percent instead? This often happens, not because of too high prices of goods and services, but because the selected product itself is not necessarily appropriate.
Maybe some of you want a product that is safe and conservative investments. However, the consequence is that the investment results obtained might not be able to match the rising prices of goods and services. If it continues you experienced from year to year, then you will go bankrupt.
What should you do to deal with this risk? Do not close yourself to the information. Learn about other investment products that you may not know, and then try to go into it by considering all the consequences. Over time, you certainly can cope with the high rising prices of goods and services by investing in products that are potentially able to deliver higher yields than the price increases.
How to Reduce the Risk of Investment
To reduce the risk, the easiest way is to invest in various investment vehicles. This method is called to create an investment portfolio. The purpose of this method is to reduce investment losses that may arise from an investment vehicle with a closed using profits earned from other investment vehicle. For example, investing in mutual funds and on savings. If they do not benefit the investor will suffer losses. But what if one of them at a disadvantage, for example, the value of mutual funds down or liquidated banks? With the loss of this portfolio is expected that one of the investments can be reduced by gains from other investments. If both lose, it means that temptation if investors use the investment in Shariah and maybe a warning or punishment even if it is not sharia-compliant investments.
So the core reduces the investment risk is the portfolio: "do not lay many eggs in one basket" because if dropped, then the eggs will be more broken than if placed in some other basket if the basket does not fall.
Investment Products
In general, investment products are grouped based on the results into two groups, namely:
Fixed Income Investment products (fixed income investment), which is an investment product that is certain to give income (usually called interest), and the money you invested will not be reduced in value. Example: Deposit and Savings Bank.
Investment Growth (growth income investment), which is an investment product that does not give definite results in the form of interest, but only returns when resold at a higher value. Example: stocks, gold, home, collectibles, foreign currencies. The risk of a product like this is money you invest can be reduced if the value the investment products it sold at a lower price than the price when you buy it.
Investment Decision Process
Investment Decision-making process is continuous (on going process) with the following stages:
Determination of investment objective
In determining the purpose of investing there are several things to be aware of the investment period (short / long), how the target return will be achieved.
Determination of Investment Policy
Investors should understand the character of risk (risk profile) respectively if one wants to take the risk or avoid the risk, how much funding will be invested, investors flexibility in time to monitor the investment, knowledge of capital markets.
Selection of portfolio strategy and asset
After knowing the things in points 1 and 2 above, then we can form a portfolio which is expected to efficiently and optimally.
Measurement and evaluation of portfolio performance
Measuring the performance of portfolios that have been established, whether it is fit for purpose. Tool to measure the performance of the portfolio there are 3 that are quite popular measures of Sharpe's, Treynor's measures and Jensen measures.
{ 0 comments... Views All / Send Comment! }
Post a Comment