10 Ways to Invest for Beginners with Small and Profitable Capital

Investment is something that is so important for people's lives. Through investment, we can prepare savings for life in the future. There are many investment products and assets that can be an option for you loh. You can choose to invest in products mutual funds, emas, saham, as well as bonds, depending on your personal preference.

For a beginner, starting an investment may be a confusing thing. There may also be many questions that if raging and make it difficult to start investing. Though investment will be better if it starts as early as possible.

What are the ways to start investing for beginners? What are the tips for choosing a profitable, safe, and minimal risk investment? The following are ways and tips for starting investments for beginners so that you don't run into investment instruments zonk stupid nan who often wanders lately.

How to Invest for Beginners with Small and Profitable Capital

Investment is a commitment that is owned by a person towards a number of assets at this time, which is expected to be able to provide benefits in the future (Tandelilin, 2017). Are you someone who is just starting to invest? Don't be afraid to experiment and learn the ins and outs of investing.

Because if not now, then when? This article will be very suitable for those of you who want to start investing, especially for those who have small capital and expect optimum profits. Check out these 10 ways to invest for beginners with small and profitable capital!

1. Start Investing As Early As Possible

Today, the capital to start investing does not need to use a large amount of money. In fact, right now you may only need IDR 100.000 to pocket one lot of company shares. Why hell actually we should start investing as early as possible? Here are some reasons.

Creating a New Source of Income

Investment is basically the same as saving. There is an advantage – be it interest or yield for sharia products – that is obtained when depositing funds through certain assets. However, when compared to saving, of course the source of income from investment (the right one) will have a higher profit.

For example, when investing in stocks, investors can earn from capital gain and dividends. Capital gains is the difference between the selling price and the purchase price of the stock. Investors can benefit from capital gain when investors sell their shares at a price greater than the purchase price.

Meanwhile, investors also earn income from dividends (profits distributed by the company to shareholders). The amount of income will differ greatly when compared to saving income which will only get a few percent of savings for one full year.

Prepare Capital for Dream Business

Through various income from investments, you can collect funds for your dream business needs loh. The earlier you start investing, the more cash flow will enter your account, so the sooner you decide to invest, the more income you will earn.

Setting Up Old Age Savings

In addition to business capital, the income you get in investing can also be used for future purposes. Basically all types of investment will produce results in the form of profits in the future. 

2. Learn the Different Types of Investment Assets

Investors are strongly advised to invest in investment assets that suit their risk profile. The risk profile can be interpreted as the level or level of how much an investor dares to take risks. By studying various types of investment assets, investors can determine which investment product is the most suitable for them.

For example, investors do not have a problem with risk and want a profitable return. He can choose stock investment as an alternative investment solution. Stock investments often experience high price fluctuations, therefore investors are advised to be prepared for the risks that may arise when investing in stocks. 

3. Determine the Type of Investment Asset

After studying various kinds of asset instruments that can be used as an alternative in investing. Investors certainly need to determine where the funds they have will be channeled. Investors can consider various things in choosing the type of asset that will be their investment field, for example risk, capital, future prospects of the asset, and so on.

Investment assets that can be chosen by investors are also very varied, there are stock investments, bond investments, mutual fund investment, gold investment, property investment and many other instruments or effects. Some investment assets that you might be able to look at as an investment option with minimum risk are: mutual funds, emas, as well as bonds. If you are looking for an investment instrument with minimal capital, stocks may be an option.

Currently, the price to buy one lot of shares – the unit in a stock sale and purchase transaction, usually equivalent to 100 shares – is very affordable. Even so, keep in mind various other factors when investing! Don't forget to prepare all the needs to start investing when you have determined the type of investment you have chosen too. For example, if you are going to invest in stocks, you will need various documents to open a special account for buying and selling shares.

4. Determine the Term and First Capital Investment

Determination of the investment period and investment capital will affect the stock instruments that investors choose. When investors want to invest for a long period of time, investors may be able to choose low-risk assets, such as bonds, gold, and property. Determination of the investment period will also affect the investment decisions of an investor.

For example, if investors want to invest in the long term in the capital market, investors will choose stocks from large companies or even guaranteed companies (financial companies will usually be monitored for sustainability by the government). In addition, stock investors who invest in the long term will tend to use fundamental analysis in their stock selection. Fundamental analysis is an analysis of the security of a company's stock based on the company, industry and macroeconomic conditions of the country in which the company operates.

5. Don't Invest Only in One Asset Instrument

You may often hear the saying, "Don't put your eggs in the same basket". This phrase is often used by investors, both those who are very experienced and investors who have just set foot on the investment scene. This expression is actually a recommendation that investors should not deposit all their funds in only one type of investment.

This is referred to as diversification. Diversification according to the Financial Services Authority (OJK) can be interpreted as an action to place investment funds in several investment instruments with different characteristics. That way, when one asset experiences a downward trend, other assets can at least compensate by not experiencing a downward trend.

For example, you invest in shares of companies engaged in the hospitality sector and companies engaged in tower procurement. During the Covid-19 pandemic, the performance of companies engaged in the hospitality industry decreased due to policies social distancing. That way, the hotel company where you invest is affected and experiences a downward trend in stock prices.

Even so, companies with industries engaged in infrastructure, especially tower procurement, are increasing due to the rapid use of the internet with school policies online. The infrastructure company finally has an upward trend in stock prices. Based on this phenomenon, you have diversified your investment assets and feel that losses incurred in one asset can be compensated for by increases in other assets.

In addition to diversifying through companies with different industries, investors can also diversify through different currencies, different types of investments (eg bonds with gold), and so on.

6. Learned a lot related to Financial Literacy and Investment

Learning related to financial literacy is very, very important for investors. In addition to getting big profits, information related to the investment world and financial will make investors always avoid the fraudulent mode under the guise of investment that is currently rife. There may be many terms related to investment that are so important but less familiar to be discussed, such as: ponzi scheme, ARB stocks, and so on that you need to explore.

Sources of knowledge that can be used as stock in investing can be obtained through books, eBook (only in Dutch at the moment), experience from various expertise, or maybe you can stop by the page often Dailysocial.id to get information and various articles related to investment and information about the latest startups.

7. Set aside funds for regular investments

Investment will be more profitable if done consistently and regularly. Every month try to allocate a few percent of your income to invest. Undoubtedly in the future your large investment will be very sufficient for the provision of your life.

8. Choose Investment Products Supervised by OJK

In investing, it is very important to choose a safe investment asset. Always remember that an investment that promises big returns without risk is something that is considered very unlikely to happen. A high return on investment usually comes with a high risk as well. Make sure that the investment you choose to steal funds from is an investment that has been supervised by the Financial Services Authority (OJK) as a supervisory body for activities that intersect with the financial world in Indonesia. 

9. Take advantage of Momentum to Get Bigger Profits

For investors who prefer to invest in the short term, a momentum will be very influential to get multiple profits. Investors can take advantage of the momentum to buy assets when they are cheap. Then, this opportunist investor can also take advantage of the momentum to sell assets when the asset price is rising in the market.

10. Always Update with Investment News and Future Prospects

Always following the latest news related to the investment world or companies that we have stolen a little of our funds will not be wrong. By following the latest company information, we can make investment decisions such as buying, selling, or holding an investment. Through research on the prospects of a particular industry in the future, you will also know which companies are worthy of funding from you. 

That's roughly 10 ways to invest, especially for beginners who want to start investing safely and get profitable results. Do you think you are ready to try investing? What investment product nih what caught your attention?

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