Most Profitable Short Term Investment

Short Term Investment

Original Article Tiga Investasi Jangka Pendek Paling Menguntungkan

For people who are just starting to invest, short-term investment is the best choice. Capital that is not too large and a small level of risk is a pull factor for most people to finally enter the world of investment.

As the name suggest, short-term investment is a type of investment that aims to achieve profit in a short period of time. Basically, the capital you use to invest is a fund specifically intended for investment, not using the funds for other needs. Therefore, when you decide to invest, you must know in advance what your goals are.

If you really need funds in a short time, let’s say the projection is in a one year period, then short-term investment is the right choice. On the other hand, if you don’t need a quick return and can wait up to say five years to make one, then short-term investing isn’t for you.

Thus, do short-term investments only yield small returns? Not necessarily. As one of the investment principles “high risk, high return”, you will achieve a profit that is according to your capacity. Each form of investment has its own advantages, including short-term investments.

In general, there are several examples of short-term investments that are favorites of novice investors such as Forex, deposits, mutual funds, bonds, and peer-to-peer lending as profitable investments. They are often the mainstay of investors in an effort to increase cash flow in a short time.

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In particular, Finex has chosen profitable investment types, all three are short-term investments, and are worth trying as part of managing your investment funds.

Deposits 

Deposits are investment product from banks that have characteristics such as:

  • Can only be disbursed after meeting the agreed term.
  • Has the option of auto-renewal after maturity.
  • Can be in the form of rupiah and foreign currencies.

Compared to ordinary savings, deposits are clearly a profitable investment. If in saving the value can be threatened by inflation, then this issue can be overcome by depositing.

Quoting from the publication of Financial Services Authority (OJK), there are several advantages of deposits so that they become one of the main choices for investors with low risk profiles, namely:

  • Interest or rate of return on investment is often higher than other forms of savings.
  • Protected in the corridor of deposit funds are not disbursed before maturity.
  • Guaranteed by Deposit Insurance Corporation (LPS).

Even so, make it a habit before investing your funds for deposits, thoroughly study the features, from the rules for disbursement, the amount of interest, to the choice of tenor.

Bonds 

Bonds are investment product in the form of debt securities which are usually issued by corporations and the state. In bonds, the party that issued it will pay the coupon (interest) to the buyer/bond holder in a certain period when paying off the debt in a predetermined period of time.

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In general, bonds consist of Government Bond, Corporate Bond, and Retail Bond. Bonds listed on the Indonesia Stock Exchange (IDX) are often referred to as debt securities and can be traded.

Bonds with maturities of 1 year are often seen as more predictable, so they have less risk than bonds with maturities of 5 years, although the longer the maturity, the higher the interest.

Bonds offer several advantages that often attract the attention of investors, namely:

  • The coupon or bond interest rate is usually higher than the bank deposit interest and is paid periodically until maturity.
  • Can be traded, so that if selling is higher than the purchase price, then the seller will get a profit in the form of the difference in value or capital gain.
  • For bonds issued by the government, it can be said as an investment that is very minimal risk.

It should be noted that before investing in corporate bonds, make it a habit to first choose bonds that have the highest rating, where the higher the rating, the lower the risk. In addition, learn and understand the terms related to bonds to make it easier for you, from Face Value, Coupon (Interest Rate), Maturity, and Issuer.

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Mutual Funds

Quoting from OJK publication, mutual funds are a place where public funds are collected by a legal entity called an Investment Manager to then be invested in securities such as stocks, bonds, and money market instruments. Mutual funds are divided into Closed Mutual Funds and Open Mutual Funds (can be traded in the capital market).

The most common mutual funds in Indonesia today are mutual funds in the form of a Collective Investment Contract (KIK) and are open.

This type of investment is favored by novice investors because it has characteristics such as:

  • Managed by a credible party who has experience in the investment world.
  • Does not require large funds. With only Rp100,000, you can feel the investment experience.
  • Liquid, so it can be disbursed as needed.
  • Transparent, because as an investor, you have the right to know your assets, the risks you face and the fees you incur.

Even so, before investing, read and understand the asset you are going to buy.

Those are the types of short-term investments that are the most profitable for you beginners who just want to experience the thrill of investing. Finex provides a Demo Account for those of you who want to learn to invest, as well as your preparation before starting live trading. Manage your investment funds as early as possible for a better future.