Investment is divided into two, namely short-term investment and long-term investment. However, if you want to multiply the benefits of the money you have in a short time, then short-term investment is a very appropriate option. Not only a little loss effect, short-term investment is also easier to learn than long-term investment. This is why this investment is attractive to novice investors.
An example of a popular short-term investment is mutual funds. Surely your OCBC NISP friends have heard of it, right? Yes, even though it is classified as safe, investors still need to know special tips and tricks so that their short-term investments can generate the most money.
Well, if you are interested or planning to enter this kind of investment world, the following information is definitely not to be missed. There is a complete explanation of the various types of short-term investments, investment tips, and some of their advantages. Let me see!
Definition of short term investment
Short-term investment is an investment product that deposits certain funds to be managed in a short time, so that funds and profits can be disbursed in a short time. The investment period is usually one year.
Invested funds are generally managed in terms that are easy to negotiate or liquidate. Therefore, this type of investment has a lower risk compared to long-term investments, but still provides benefits that are not inferior to other investments.
Short term investment goals
The short-term investment objectives are:
- Intended for newcomer investors to gain investment experience.
- This can increase your cash flow or income in no time.
- For entrepreneurs to increase company capital in a short time.
- Get additional funds from invested money in no time.
- As a form of passive income.
Types of short-term investment
There are various types of profitable short-term investments that can be chosen based on the investor's goals, including:
The first example of a short term investment is a time deposit. Time Deposit is a savings product in a bank by depositing and withdrawing a certain amount of funds in a short time. Time deposits ranging from 1 month, 3 months, 6 months, 12 months, up to 2 years.
Even though the time is short, funds can only be withdrawn at maturity. Therefore it cannot be withdrawn at any time. The level of deposit security is guaranteed because it is controlled by the Deposit Insurance Corporation (LPS) with a deposit guarantee of up to IDR 2 billion. Interest rates on deposit products are quite high. So that this investment product is a profitable investment option.
2. Mutual funds
Mutual funds are investment products where investor funds will be managed by investment managers to earn profits. So that investors do not need to think about strategies and methods of managing them.
There are many types of mutual fund investments, both long-term and short-term. Short-term mutual funds are liquid and instant. Usually this type of money market mutual fund is a short-term investment option because the term is only one year and the risk level is low.
3. Government Bonds (SUN)
Another example of short-term investment is government bonds or SUN. SUN is a debt message issued by the state for fund investors. This investment product is quite profitable and safe, because the state guarantees payment of principal and interest within a certain period of time.
So the level of risk is very low. Paid-in capital does not have to be much. You can start investing starting from IDR 1 million. The way government bonds work is that the country produces a message to investors. Investors such as credit invest a number of funds in the state so that these funds are managed by the state for development and state needs.
Profits from capital management will be paid by the state to investors in the form of interest. Several other government bond products are sukuk and bonds.
4. Peer-to-peer (P2P) fintech lending
Fintech Peer to Peer (P2P) Lending is a new investment product where investors invest their funds in Indonesian SMEs to develop their businesses. The profit from the management of these funds is in the form of an interest rate with a certain amount.
The investment period is freely chosen by the investor. Starting from 6 months, 1 year, to 2 years. So the refund is faster. The capital required to invest is quite small. Starting from Rp. 100 thousand you can already invest.
Although the profits will be given every month, the level of risk is quite high. Because these funds are managed for SMEs that have the potential to fail or lose. But this type of investment is still convenient because it has been registered with the OJK.
Who does not know the action? This investment has been very popular for a long time. Shares are a valuable message as a fact of ownership of a legacy. While popular for long-term investments, there are short-term types of stocks.
Short term action using trading system. Profits from trading can be made within hours. But you have to be an expert and be able to manage strategies to make a profit. The risk of the stock is also high, but worth the huge gains.
Profitable Short Term Investment Tips
Whatever type of short-term investment you choose, the goal is to get the maximum return with minimal risk. So, so that the profits are doubled, let's follow the following short-term investment guidelines.
1. Setting investment goals
Before investing, you must first set goals. Don't invest carelessly because of the trend. Having a clear investment goal will make it easier for you to determine investment tools and investment strategies.
2. Knowing the performance of investment instruments
After identifying the investment objectives, the next step is to identify investment products on the market. It is necessary to understand in detail the investment instrument to be selected. Starting from information on how to manage funds, risk of loss, legality of investment products, profit systems and the like.
Do not suffer losses due to lack of understanding of investment products. Thorough and careful in determining investment instruments to avoid investment fraud. Be a smart investor so that your profits are doubled!
3. Choose the right investment
There are many investment products on the market. Don't choose the wrong one. You must know your needs and financial condition first before investing. Choose investment products based on your needs and goals.
4. Invest with strategy
Investing is not just about saving funds. However, you must be armed with investment-related knowledge. To get the maximum profit, you need to implement an investment strategy.
Short term investment benefits
Short-term investment was chosen because it has many advantages, including:
- Fast refunds and profits.
- As passive income
- Could be additional cashflow
- Meet certain short-term needs, such as education costs.
- Profitable savings products that can be enjoyed quickly.
- This investment has a small level of risk.
- As a place to learn and seek investment experience for novice investors.
- The capital required is not too large. Starting from IDR 100 thousand you can invest in the short term.
Well, that's complete information about short-term investments. Friends of OCBC NISP who want to experience low risk investment, short term investment is the best choice. Good investment!