What is Investment? These Definition and Examples

What is an investment? Maybe that question is often asked by people who are still new to the investment world. It is natural that not many people know about investment, how the investment is carried out along with examples of tangible assets around the community because the investment world is not as easy as imagined to run it.

In simple terms, investments made by the community are long-term investments and tend to be carried out as property investments, such as buying land and houses. Still, if it is interpreted more broadly, there are many types of investment, and of course, each of these types has its techniques and risks to run it.

For those learning to invest, we will review what investment is and what types of investments and examples will make you understand the investing world. Check out our review below.

What is Investment?

Investment is the availability of a person to set aside money with a specific value to obtain profits in the future. Thus, by investing, the person wants to get more wealth and develop in the future.

In addition, investment can also be interpreted as a person's condition in making investments in the long term to earn profits in the future. In this case, the party who invests can be called an investor.

The type of investment a person makes also varies; it all depends on the person who invests what he wants to allocate to the money they have. In this modern era, many types of investments and business models exist. Therefore you must know before going any further to invest.

Investment Example

After you understand the notion of investment, we will study examples that you can read in our review below so that it will be easier for you to understand.

There are many types of investments that you can make to make a profit in the future. Of course, from these various types of investments, you will need adequate knowledge to start so that the investment you make does not lose. Here are the types of investments you can make.

1# Gold Investment

Investment The first investment that is certain for the long term, and many people do, is gold investment. This type of investment is a type of investment that does not require special skills to manage it. You buy gold today and sell it in 10 or 20 years, and your money will be protected from inflation.

To make this gold investment modern times, many ways can be done, one of which is to invest in gold through a pawnshop gold savings where you have to make regular savings every month to buy gold. You can try gold investment through the pawnshop because of its various conveniences.

2# Property Investment The

next investment that many people have made is property investment. This type of investment also has a low risk because to do so, and there is also no need to use special skills unless you become a property agent.

Property investment can be in the form of land, houses, apartments, etc. Many also invest in property in the form of rented homes and boarding houses for rent, so they get monthly passive income from the rental money.

For some people who have more money to buy a house, many are eyeing a place with a mortgage system or home ownership credit. This is so that their money is allocated by paying the house in instalments every month, and then the house is rented out to someone else.

3# Stock Investment

Investment Stock investment is investing in securities companies listed on the stock exchange. To make this investment, you must have the expertise to analyze the stock market.

In addition, you have a lot of flying hours to study stocks so that the shares you buy don't lose. In addition to promising high profits, investing in stocks also has a high risk if it is not balanced with cold funds.

To make this stock investment, we recommend using cold money or money that is not being used so that you are not easily stressed investing in stocks.

4# Mutual Fund Investment

Investment is a type of investment with a system of fund contributions from several people to be collected, which the investment manager manages. This mutual fund investment has a lower risk than a stock investment because the one who works our funds is the investment manager. Where the manager is professional and is directly supervised by the OJK (Financial Services Authority)

Investing in this mutual fund is relatively easy; you must stock up on various applications. Mutual funds are like seeds and magic. You can try it through the guides of each of these applications.

5# Deposit Investment

The last type of investment that you can do easily is the deposit system. With this type of investment, you just put money in the bank within several months to years and then take the money.

The profit is taken from the deposit interest given by the bank that offers deposit products. The minimum time for deposit investment is usually three months, but our money cannot be taken within three months. Within three months, our money will increase from the deposit interest that has been given by the bank.

What is Investment - Closing

After you know what investment is, you want to determine what type of investment you want to make. All kinds of investments certainly have their level of risk. It's just how you identify it to minimize that risk.

To make various types of investments, patience is needed in the long term so that the investments you make bear fruit in the future. We hope the article we reviewed on What is Investment and this Example can be helpful for you.

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