Types of Investment for Beginners that are Safe and Reliable

As a layman, not a few think that investing must use large capital. Even though there are many types of investments for beginners with capital starting from IDR 50,000.

With a small capital, we can start investing at any time. The faster it is done, the more benefits we will get.

Several investment products are quite popular among young people, such as mutual funds, gold, deposits, and stocks.

Apart from the four types of investment above, various other types of investment are also quite profitable. Examples include Government Securities, P2P Lending, and Forex.

Types of Investment for Beginners that are Safe and Reliable

If you are still unsure, here are some recommendations for types of investment that are suitable for beginners, safe, and also reliable:

Deposit

Deposits are a term investment product where profits can be taken within a certain time, starting from 1 month, 3 months, 6 months, 12 months, and up to 24 months.

The benefits provided by deposits usually vary, depending on the policies of each bank. Usually, the profit starts from 4-7% per year with a 20% tax for deposits with an amount above IDR 7 million.

Investment deposits are quite popular and are widely chosen because they are a safe type of investment and have minimal risk. Investments in the form of deposits are quite safe because they are guaranteed by the Deposit Insurance Corporation (LPS).

If the bank where we keep our deposits goes bankrupt, then we will still get our deposit funds in full, a maximum of IDR 2 billion from LPS.

Deposits are suitable for investment in the short term, for example for children's education funds or funds for childbirth, because the period is not too long.

Mutual funds

Mutual funds are investment instruments that are quite popular and are becoming a trend because they can invest with capital starting from low. The profits are also quite promising, can reach 20% per year.

Later, the money we invest will be managed by professional investment managers by distributing the capital we invest in the money market to make a profit.

Even though the profits are quite large, this depends on the price of investment instruments in the money market. If it is down, then the capital we deposit can be reduced.

Now, there are many online mutual funds available for beginners that we can choose and manage easily. If we want to get a large return, we can have a stock mutual fund with a fairly high risk. Make sure to choose the best investment manager by looking at their track record.

Gold

Gold is still one of the most popular investments because its price tends to rise, even though it fluctuates. If the value is dropping, the amount is not too significant.

Another advantage of investing in gold is high liquidity, so you can look for it quickly at any time if you need funds.

We recommend that you choose gold investment for long-term investments for the next 10-20 years so that you can also get more profits. For example for children's education to college or for pilgrimage funds.

To start investing in gold, we don't have to spend a lot of money right away! This is because the Pegadaian Gold Installment program is available which is suitable for those of us who have just started investing in gold.

With this program, we don't need to worry when our funds are limited, because we can buy gold bars in installments every month.

Gold bars are offered to range from 0.5 grams to 1 kilogram. we can choose according to your needs with installment terms ranging from 3 months to 36 months.

If your installments are paid off, then we can immediately receive gold bullion. In addition, the gold bars that we receive can be sold or pawned at the nearest Pegadaian outlet. Suitable for use if there is an urgent need for funds.

State Securities (SBN)

Recently, millennials have also begun to pay attention to investment in State Securities (SBN). This is because access to buying National Securities has become easier and can be done online.

National Securities (SBN) is a type of investment in the form of bonds that can be purchased from the government. This type of investment also promises a sizable profit, which is more than 6%, and is quite safe because it is guaranteed by the government.

There are 3 types of Government Securities (SBN) to choose from, namely:

Retail Saving Bonds (SBR), in the form of state bonds
Savings sukuk, in the form of State Sharia Securities
Retail Government Bonds (ORI), in the form of Government Bonds, sold to retail investors
To make this investment, the capital we have to spend starts from IDR 1 million.

The benefits of SBN can be obtained in 2 ways, namely:

we keep Government Securities (SBN) until maturity and benefit from the interest rate according to the initial agreement.
we can sell National Securities (SBN) through the secondary market at a certain price so that we still get a profit.
Share

Stocks can also be the best investment choice because of the large profits. Some of the richest people in the world can also live luxuriously from the profits of stock investments.

However, before starting this investment, make sure we study it properly, OK? Do not let us invest in stocks by borrowing up to hundreds of millions, but cannot manage it properly and instead experience sizable losses.

Usually, beginners are always tempted by high stock profits which are always heralded on social media. So they take hasty actions by investing all their capital without doing detailed research. Not lucky, even lucky.

Before entering the stock market, make sure we do some research first about stocks and the rules of the game, OK? This is important because stocks are high-risk investments and full of speculation. we can choose the type of stock investment for beginners that has been widely offered.

P2P Lending

Peer to Peer Lending is also one of the investments that are starting to be looked at and is an example of a profitable investment for beginners. This is because the minimum required capital is only IDR 100 thousand.

Peer to Peer Lending itself is an investment by lending capital to other parties, for example, SMEs. Later, we will benefit from the interest offered by the borrower.

If we are interested, make sure we choose P2P Lending with the right and clear rules, OK? Because the lending process through P2P Lending usually does not use collateral, the risk is quite large. It's better to choose P2P Lending that has been supervised by the OJK so that it is guaranteed.

Forex

Forex is a type of investment in the form of buying and selling currencies. Forex transactions can be done at any time because it is open 24 hours and is the largest financial market in the world.

One of the advantages of forex that is favored by investors is the high investment liquidity, so the opportunity to get big profits is also high.

If we are interested in this investment, make sure we have an official forex broker that has been registered with Bappebti or the Commodity Futures Trading Regulatory Agency.

Online gold savings

If we are worried that we cannot store gold in physical form, we can open a gold savings account online.

This savings system is the same as regular savings. we can deposit money every month and it will be accumulated according to the price of gold. For example, we save as much as IDR 10 million, so we can get around 12 grams of gold.

An example of Gold Savings is at Pawnshops. We can open an account starting from just IDR 50,000 in the Pegadaian Digital application.

Pegadaian Gold Savings is easy to liquidate by selling or pawning. If done at a Pawnshop branch, we can buy gold through Gold Savings starting at 0.01 grams or the equivalent of Rp. 10,000, depending on the price of gold at that time.

The risk of losing gold is also smaller because the physical form of gold is stored by this gold savings service provider.

Link Units

Unit Link is an alternative for those of us who want to invest while paying for life insurance.

While preparing for the future, we can simultaneously invest. However, Unit Link investment also carries considerable risks. Make sure we understand the risks of this type of investment, OK?

Robot Advisors

Robo Advisor may sound new. But this is very useful for those of us who have just started investing. This is because Robo Advisor will provide investment recommendations for mutual funds that are suitable according to our risk profile.

Recommendations will help us make the right investment and make a profit. To avoid the risk of loss, make sure we choose a Robo Advisor that has been supervised by the OJK.

Those are 10 types of investments for beginners that we can try. Make sure we choose an investment that has been registered by the OJK to be safe, OK? Good luck!