Investment tips for beginners

Investment is one way to be able to earn passive income. But every investment must have its own risk, be it low, medium, or high. Without sufficient knowledge, investment is tantamount to speculation. This often causes novice investors to experience losses. For you novice investors, there are some tips that you can learn below.

Have Clear Financial Goals
If you want to make an investment, you should make a clear target. For example, for the cost of a down payment for a house, children’s education funds, costs for retirement preparation, or expenses for holidays.

In addition to having clear financial goals, you must also have a timeframe for when these plans will be realized. Is it in less than 1 year? 3-5 year timeframe? Or maybe even longer to more than 10 years?

After knowing how long it will take, determine the target funds you want to achieve and what investment instruments you will use to achieve your financial goals. Different timeframes, of course, different instruments.

Invest in Understandable Instruments
Invest in understandable instruments. Take the time to learn about the investment instrument you want to use. Don’t be easily influenced and tempted by unreasonable investments. Do not easily believe the news before doing your own analysis.

Many novice investors are trapped simply because they are reluctant to study the investment product they choose. Sometimes novice investors feel afraid of missing the moment to buy or sell and end up following what people say without studying the product being purchased so that they take the wrong steps in investing and then suffer losses.

Likewise with unreasonable investment offers that offer huge profits. However, because of the greed of many novice investors who believe without learning more. The result is that the money is lost due to fraud under the guise of investment.

Knowing Your Own Risk Profile
Before starting an investment you must know your own risk profile. Are you a conservative, moderate, or aggressive type of investor? If you choose an investment instrument that does not match your risk profile, you may feel uncomfortable investing. For example, you have a conservative risk profile but choose aggressive investment instruments such as stocks. You will be worried about seeing stock price fluctuations every day.

Market Portfolio Diversification
can change very quickly. It’s a good idea to diversify your investment portfolio. You can combine investments in several instruments with proportions that are adjusted to your risk profile.

Investment requires patience, persistence and of course consistency. Consistently setting aside money to invest each month is not easy at first. Waiting for the investment to pay off also requires patience. Having a clear plan keeps us on track with the original plan. Do not enter into impulse buying or selling transactions.

Use cold money to make investments. Don’t use the money you got from debt. Investment certainly has risks, especially if you hope that the money from debt can return many times over when invested. The most beautiful scenario if you are lucky then you can return the debt. What if you experience losses by using money from debt? Of course you will get into trouble because the money is gone in the market.

Perform Periodic Portfolio Evaluation 
After you have invested, evaluate your portfolio periodically. Always monitor your investment, is it experiencing positive growth or is it a loss? What strategy will you use next?

There are many investment options available. For those of you who are novice investors, bonds are a relatively safer investment option. If you want an Islamic investment product that is run based on Islamic principles, you can choose Islamic bonds

Sharia bonds apply sharia principles in their management. Sharia bonds are known as sukuk. Sukuk provide returns in the form of rent (ujrah) with a certain percentage in accordance with Islamic sharia principles that do not contain elements of usury.

Islamic bonds have higher yields than deposits. In addition, sharia bonds also have the potential to experience capital gains when sold on the secondary market. By investing in bond products, it means that you are also participating in Indonesia’s development.

The requirements for investing in Islamic bonds online at Permata Bank are quite easy. You only need to attach a valid Indonesian Citizen’s KTP or Foreigner’s Passport, have an account at Permata Bank and have a Bond SID.