Skip to main content

Introducing about Investment

 


  Investment has become more common among the young generation. They believe that investing can make more money or as a passive income. Well is not totally wrong, however, investment is something value purchased to make more money. The term investment is often applied to stocks, bonds, and other financial instruments, investments also commonly include real estate, artwork, gold, collectibles, and even wine. Keep in mind that there are risks involved with investing. 

  Investing involves putting money into something that has the potential to return a profit. It typically gives a financial stake in the company or other asset in which they invest. There are four common types of investments, so let's have a look closer.

  Stocks. This is the common investment where the companies sell shares of stock to the public to raise money for their operations. Buying a stock means you own a piece of the company. If the company is profitable, your stock will increase in value, and in some cases, you may also be paid a dividend. On the other hand, if the company is unsuccessful, you can lose money as your stock drops in value. Keep in mind that stock is a high-risk investment.

  Commodities. It includes agricultural products, oil, gas, and other energy products and metals such as gold and silver. Their value fluctuates based on market demand. Let's say if there is a shortage of oil, the price of oil will increase and the investment will rise in value. Some people think this investment is quite safer than stock. 

  Bonds. Companies and nations sell bonds to raise money. If people buy a bond, they're making a loan to the company or country. They will receive an interest payment over a fixed period of time. Bonds tend to be less risky than stocks, but the return may be lower. 

  Real estate. Buying homes or a piece of land can be an investment in real estate. The risk varies for real estate investments. Property values can be affected by crime rates in a neighborhood. Real estate investment has always increased the value but it takes a lot of time to get sold.

  Now we do know about investment instruments but why investment is very important? Well, investment ensures present and future financial security. It allows us to grow our wealth and at the same time generate inflation-beating returns. Furthermore, investments have the potential to meet personal financial goals, such as purchasing a house, retirement, and building an emergency fund. 

  The investment choice depends on several factors like risk capacity, age, investment horizon, and financial goals. Make a wise choice for yourself. It will be better to invest after conducting proper research and understanding your investment options. So, begin your investment journey now! Thank you for your time and have a nice day 😀. Happy investing!


References:

  1. What Is an Investment? (2022). Available at: https://www.thebalance.com/what-is-an-investment-5090542.
  2. Why is Investing Important and Where Should One Invest - ICICIdirect (2022). Available at: https://www.icicidirect.com/knowledge-center/article/why-is-investing-important-and-where-should-one-invest.
  3. Investing | What Does It Mean & How Does It Work? (2022). Available at: https://www.annuity.org/personal-finance/investing/.
  4. Top 5 Reasons Why Investing Is Important (2022). Available at: https://dividendearner.com/why-investing-is-important/.
  5. Management, P. (2022) PT Yuanta Sekuritas Indonesia | What is an Investment?, Yuanta.co.id. Available at: https://www.yuanta.co.id/post/what-is-an-investment.


Labels:

Comments

Post a Comment

Popular posts from this blog

About Telekinesis

    Have you ever dreamed to able moving objects around with your mind, like in a film? The power of telekinesis has captured the imagination of scientists, psychics, and fiction writers for centuries unproven by science.   So what is the definition of telekinesis? Telekinesis or psychokinesis refers to the alleged ability to move objects with the power of the mind or willpower, without physical interaction.   Telekinesis is from the Greek words, tele means "distant" and kinesis means "movement". If we combine together, it refers to the apparent ability to move physical objects using only the mind and without any physical interaction.   The idea of telekinesis has been in the imagination of fiction writers for ages, allowing the characters to demonstrate telekinetic abilities to move objects, restrain opponents, and levitate for dramatic effect.   However, many have claimed to have telekinetic abilities and believe that telekinesis is possible, but no one h...
Post a Comment
Read more

Living a Simple Life

    In the modern era, living a simple life is quite tricky. We are constantly being attacked by ads, big sales, and messages telling us we need the latest gadget or must-have items. It must be difficult to resist these temptations when it feels like everyone around us is living a more glamorous life than we are.   Ok, let's take a look at what people often think of when they hear this phrase. Minimalism means having fewer things and only what is needed. Old-fashioned living means rejecting modernity and living like it's the past. Self-sufficiency means creating everything we need and buying as little as possible. All of those are close, but none of them are quite right. The opposite of simple is not modern, expensive, or dependent.   Living a simple life looks a little different for everyone, but at its core, simple living is all about focusing on the things that truly matter. For many of us, those include our family and our friends. By living a simple life, we can ...
Post a Comment
Read more

Bushido in Modern World

    What is in your mind when you hear the word "Bushido"? Do you know what that means? You may probably have watched a samurai film and you probably heard "Bushido" in that film. So what is Bushido? What is the essential of Bushido in the modern world?   Bushido means "way of the warrior". It is commonly defined as the moral and behavioural code of the samurai. The essentials of bushido are loyalty to one's family and one's feudal lord as known as daimyo, personal honour, and courage in the face of death. The code has been important to samurai warriors for centuries.   In World War II, the Japanese government pushed an ideology of bushido to imperial bushido on the citizens of Japan. It emphasized Japanese military spirit, honour, and self-sacrifice. However, when Japan its defeated in the war, people did not rise up as demanded by imperial bushido. The concept of bushido seemed to be finished and ended forever.   As the country grew into one of t...
Post a Comment
Read more