Canovel.org – Any investors certainly have the goal of long-term investment that is different. Some of them intends to develop its own funds, while several others decided to ‘secure’ funds capital from the risk of inflation. Then, what is it a long term investment? What is the purpose and its types? Let’s see explanation details below.
More About The Long-Term Investment
In general, long-term investment is one type of investment to invest capital funds regularly and can be withdrawn after a certain period of time. The most rapid, long-term investments can be withdrawn within 1 year.
Long-term investment can also be connoted as the planting of asset wealth from the individual or company to company and individual other for the sake of obtaining benefits such as yield fixed or mastery over the other objects.
- Earn passive income in each period. Passive income what is meant is derived from royalties, dividends, interest, and/or rent.
- Reduce the competition that occurs between similar companies.
- Directs the special fund, for example funds for social purposes or funds for the expansion needs of a company.
- Ensure the availability of raw materials and market for products that will be produced.
- Be the controllers of the individual or company with a certificate of ownership of a business.
Type-The Type Of Long-Term Investment
It’s no secret if the investment property has been chosen as an instrument of long-term investment because the benefits that it offers a very large, considering the needs of the community property, which continue to increase significantly each year. As for the shape of this type of investment property can be land, apartment, house, or other.
Gold is a precious metal of 99.99% which is valuable also rare. Hence, the presence of gold is highly accepted by the entire community as an investment instrument that promise. No matter how the turmoil of the up-and-down economy of a country, the value of gold tends to be stable. Therefore, the type of long-term investment this beginner investors with a low risk profile.
A bond is a type of investment in the form of debt securities as evidence for the transaction of the loan made by the issuer with the owner of the funds. Generally, the investment period ends in 2 to 3 years or more. Today, the debt the country has also become more accessible since the issuance of securities of the State retail (SBN Retail) by the government that allows individual investors Indonesian Citizen (WNI) make a purchase online and affordable through Distribution Partners, one of which is Investree. This instrument is very suitable for novice investors with the preferences of the risk of low investment.
Mutual Fund Investment
Investment in mutual fund is collection of funds by the society in which the management is carried out by the Investment Manager. Furthermore, the Investment Manager will put these funds in the form of a portfolio of securities such as stocks, bonds and various other instruments to get the benefits. The mutual fund itself is affordable because it allows You to invest starting from $ 10 thousand. The fund itself also consists of some kind, so You must make sure first mutual fund products You select the in accordance with the risk profile of Your investment.
Investment Retirement Program
In Indonesia, there is a lot of standing company that offers investment programs of the pension fund. When has entered a period of no longer productive, the investor will obtain the funds derived from the results of the development by the insurance company used. However, the retirement program is not much interest when compared with other investment instruments. Therefore, the size of the benefit depends on the total profit generated the insurance company.
Stock is an investment instrument that proves ownership of an individual or company over the assets of a company or individual to the other. The main benefit that will be received by stock investors is the dividend, and the difference in the selling price with the purchase price.
That’s some destination and other types of long-term investment that You need to know. Whatever the reason You choose a long-term investment instrument as mentioned, be sure to learn more about how the benefits and risk profiles offered.