Introduction to Investment
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Understanding
Investment is a deposit of money in order to obtain the expected return is greater than the deposit rate to meet the objectives by a predetermined time period and in accordance with of the capital capability. Or, in other word, it can be interpreted also as a sacrifice of delay spending now to get a better return in the future.
Put more simply, investing is a good way to manage the money with buy property, deposited or grown into a business with the aim to benefit after a period / pre-determined period.
Forms of investment
As we know, there are some forms of investment that we know, among which are:
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Investment Decision Process
Investment decision-making process is sustainable (on going process) with the following phases:
> Determining the purpose of investing, in determining the purpose of investing there are several things to be aware that the investment period (short / long), how the target return will be achieved.
> Determination of Investment Policy Investors should understand the the risk profile respectively if one is willing to take risks or avoid risk, how much funding will be invested, the investor flexibility to monitor the investment of time, knowledge of capital markets.
> Selection of portfolio strategy and asset
After learning these things at point 1 and 2 above, then we can form a portfolio that is expected to efficiently and optimally.
> Measurement and evaluation of portfolio performance
Measuring the performance of portfolios that have been established, whether it is fit for purpose. Tool to measure the performance of the portfolio there are 3 popular enough that Sharpe's measures, Treynor's measures and Jensen measures.
Understanding
Investment is a deposit of money in order to obtain the expected return is greater than the deposit rate to meet the objectives by a predetermined time period and in accordance with of the capital capability. Or, in other word, it can be interpreted also as a sacrifice of delay spending now to get a better return in the future.
Put more simply, investing is a good way to manage the money with buy property, deposited or grown into a business with the aim to benefit after a period / pre-determined period.
As we know, there are some forms of investment that we know, among which are:
Investment property
Investment property can be planting some money in the form of property, the most common thing is usually done in gold, a house or land.Equity investment
This equity investment is generally associated with the purchase and store stock in a stock market by individuals and funds in anticipation of income from dividends and capital gains as the stock increases. It also sometimes refers to the acquisition of equity (ownership) to participate in a private company (not listed) or the new company. When investments are made in the new company, it is referred to as venture capital investment and have a greater risk than investments in situations where the shares listed on the stock performed.Investment Products
In general, investment products are grouped based on the result into 2 groups, namely:> Fixed Income Investment Products, which is definitely an investment product that provides income (the interest), and the money you invested will not be reduced in value. Example: Deposit and Savings Bank.
> Growth Income Investment, which is an investment product that does not give definite results in the form of interest, but only returns when resold at a higher value. Example: stocks, gold, home, collectibles, foreign currencies. The risk of a product like this is money you invest can be reduced if the value the investment products it sold at a lower price than the price when you bought it.
> Commodities, Commodities-related shares of companies that produce raw materials such as oil, gold, silver and base metals, like aluminum, copper and zinc.
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Investment decision-making process is sustainable (on going process) with the following phases:
> Determining the purpose of investing, in determining the purpose of investing there are several things to be aware that the investment period (short / long), how the target return will be achieved.
> Determination of Investment Policy Investors should understand the the risk profile respectively if one is willing to take risks or avoid risk, how much funding will be invested, the investor flexibility to monitor the investment of time, knowledge of capital markets.
> Selection of portfolio strategy and asset
After learning these things at point 1 and 2 above, then we can form a portfolio that is expected to efficiently and optimally.
> Measurement and evaluation of portfolio performance
Measuring the performance of portfolios that have been established, whether it is fit for purpose. Tool to measure the performance of the portfolio there are 3 popular enough that Sharpe's measures, Treynor's measures and Jensen measures.
Happy Investing !
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