Bakrabata.com – Investment is an activity of storing or placing funds in a certain period in the hope that the storage will cause a profit or increase in the value of the investment. A person who invests is called an investor or investor.
Investment is closely related to business, but beyond that there are many investments that are not tied to business. There are many non-business investments that are recently in demand by the public with the aim of investing to increase the value of assets owned.
The purpose of investing is not to make an investor get rich quick, however investment must be lived with patience, strong commitment and remain calm when the market fluctuates. But that does not mean that investments cannot be made in the short term. There are many short-term investments that are also very profitable as well as long-term investments.
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Short-term investment and long-term investment
- Short Term InvestmentShort-term investments are investments that are usually less than three years long that you can then convert for money or sell. For example, short-term bonds, certificates of deposit, the stock market.
- Long Term Investment
- Long-term investments are investments that take more than three years. Long-term investment is perfect for those of you who want to save for a long enough purpose, for example, marriage, pension funds and education costs. When you decide to take a long-term investment make sure it will not take funds before three years. An example of a long-term investment of aggressive mutual funds with a high return value.
From the previous explanation, there are many investment objectives behind which investors make investments. The following investment objectives include:
- Getting A Steady Income
- Investment objectives to earn a steady income are usually applied by those who invest in a company. For example, you invest in a fast food processing company. From the sale, you are entitled to a percentage of profit each month. The amount of profit percentage will be different, depending on the agreement between the company and the investor.
- Developing Business
- In addition to earning a steady income and profit, investment can also develop the business you are currently living. The investment profit obtained can be an injection of capital for your business.
- Guarantee In Business
- If you invest in raw material suppliers the business you are running then most likely the company will not experience a shortage of raw material supply. In addition, the price of your product will be able to compete in the market because it gets cheaper raw materials with good quality.