Learning Investment09 - We've certainly had a lot to know
that the investment necessary to do for the sake of a better future. But with
many investment options in today's surely not an easy thing to determine an
appropriate investment for us. If you do not dominate the market situation is still
quite difficult to resolve this issue even if you diligently seek detailed
information about investment opportunities including long term investment
strategy.
We may still remember that the
global financial and economic crisis has had a huge impact on the macro
financial markets including reduced levels of investor confidence. In many
countries, including in the country stock markets suffered colaps so that
investors suffered huge losses due to the decline in capital market
drastically.
In such conditions many ways by
investors such as, sell shares as soon as possible, retain their shares, some
even increase the amount of investment. So how exactly long-term investment
strategy that is most appropriate to deal with this problem? Certainly there is
no definite answer on this case, but rather depends on the needs of investors
in accordance with the investment or even a reason to invest.
There are at least three steps or
options that may be made by investors, namely, to survive or hold as a first
step, rebalancing or increase investment in a second step, and as the last step
is to cut loss or sell. The current state of the market was declining ideally
investors should not panic. Especially if their purpose is to make long term
investments that can be expensive to invest the funds. Long-term investment is
meant here is for a period of at least 10 years.
Read also:
Be Aware...!The amount of income is not the Most Important In Investation
Historical records state that stock
investing has the potential to give a return or returns are better when
compared with the investment deposit for a period of long-term investment. In
1998, in which the severe economic crisis hit the homeland and the world
economy is drastically decreased with the interest rate of SBI (Bank Indonesia
interest rate) reached 28.20%. Interest rates on deposits even reach up to 70% rate.
The current inflation was also
reached 6:59%. JCI during 2007 increased by 52.08%. Investing in stocks is much
higher than other products based on the calculation of value in return for 9
years. In that period the return on investment in SBI by 180.93% while the
stock amounted to 583.54%. Thus it can be concluded that investing in stocks is
likely to provide more profit.
Thus, if guided by development and
its history, the advice for long-term investors should be is not too concerned
with a variety of reports contained in the mass media. News about mutual funds
or withdrawal should not things that can affect investors. Economic news thus
should not be a suitable indicator for long-term investors. In addition in the
country, in other countries even though the mutual fund investor similar
products also have such consideration. They will not be affected by the
withdrawal of the registration or mutual funds.
One long-term investment strategy
that can be done by the investor is to consider the investment manager, which
includes oversight of the trust, reputation, performance, and fundamentals.
Nonetheless investment diversification is also a thing that is not less
important. It aims to minimize the investment risk or the impact of
investments. Investors can invest in deposits by 80% while the remainder could
be allocated for the purchase of shares. Stock investment is meant here is
certainly a long-term investment, which is 5 years. You can also do the
opposite.
One thing to note investor is an
investment manager who will manage the money. Assessment needs to be carried
out from the aspect of performance, personality, reputation, and track record.
However, the choice of investment diversification is not important. That is,
you as an investor is not advisable to invest in one type only. For example,
you can invest 80 percent of your money on deposit and the remainder to stock.
Thus, you can minimize the risk of loss and losing your money overall.
When there is a condition in which
one portion of the portfolio is reduced, the investor must divert investment.
For example, on the condition that the share price fell amid the stock market
portfolio to 10% while deposits reached 90%. In general, long-term investment
strategy of the investor at the end of the year is a withdrawal of 10% of
deposits and reinvested in the stock investment amount will be re-balanced so
it is 80:20. If investors use investment returns impartial in general will
likely be greater.
The
types of long-term investments
Before deciding to choose a long-term
investment that is appropriate for you should first determine the long-term
financial goals you want to earn. Maybe for baby education expenses, the cost
of the pilgrimage, or the cost of pensions in old age you later. Financial
goals is very suitable for long-term investment that you want. Long-term
investments can be defined as a new investment fund will be used within a
period of at least 5 years.
Investment products which have been
chosen for the long term is is a property, stock markets, and capital markets.
In order to obtain satisfactory results ideally prospective investors choosing
long-term investment and be patient waiting for investments to fruition. Do not
let you select a product term short-term investments to meet long-term
financial goals. Or if you feel the investment period is too long, you can try
the medium-term investments in the form of gold investment products and bonds.
Buying a property consisting of a house is also suitable classed as a
medium-term investment.
Many professional investors
recommend investing in stocks as long-term investments with maturities diverse.
The time period for example is 1 to 5 years or 5 years and above. When choosing
an investment, you can target your financial goals as long or medium term
investment. When you have a sufficient capital you can select the property as
an investment. For example you can buy one or more properties and then rent out
the property that belongs to you or even sell them when needed fresh funds. Put
simply declares the property investment mechanism that you can try.
One long-term investment strategy
should always do is learn in advance the profile of an investment that is
offered to you or be your target. By doing so you will know exactly the profit
opportunities that you esteem and the risk of loss that may have you bear. Do
not rush tempted by the offer promising investment big profits consistently
because it could be a disguised deception. Well, hopefully useful!