Investment Tips For Beginners That You Must Consider

Investing is one of the strategies to earn money passively. However, every investment must have its own risk, whether low, medium, or high. Without sufficient knowledge, investing is just speculation. Consequently, it often causes novice investors to experience losses. For beginner investors, there are some tips that you can learn below.

Determine Clear Financial Goals
If you want to invest, you should determine targets, such as investment target for financing house down payments, children's education funds, retirement funds, or expenses for vacations.

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

After determining how long it will take, decide the amount of money you want to save and what investment instruments you should use to achieve your financial goals. Different time periods are indeed applied for different instruments.

Invest in the Investment Instruments that You Understand
Invest in the investment instruments that you understand. Take the time to learn about the investment instrument that you want to use. Do not be easily influenced and tempted by unreasonable investments. Also, do not easily believe the news before doing your own analysis.

Many new investors are often trapped because they are reluctant to learn the investment products that they choose. Sometimes, new investors are afraid of missing the moment to buy or sell and end up following what people suggest without learning the product they are about to buy. As a result, they take the wrong step in investing and suffer losses.

The same goes for an unreasonable investment that offers enormous profits. However, because of greed, many new investors believe without learning. As a result, the investors lose their money to investment fraud.

Knowing Your Own Risk Profile
Before starting to invest, you should 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 can feel uneasy when investing. For example, if you have a conservative risk profile but choose an aggressive investment instrument, such as stocks, then you will worry about seeing fluctuations in stock prices every day.

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

Investing requires patience, persistence, and of course, consistency. Consistently setting aside money to invest every month is not easy at first. Waiting for the investment to pay off also requires patience. Having a clear plan makes us stick to the original plan. Do not make impulsive buying or selling transactions.

Use cold cash (money available to spend) to make investments. Do not use the money earned from debt. Investment certainly has risks, especially if you expect the money that you get from debt to return multiply. The most beautiful scenario is that, of course, if you are lucky that you can repay the debt. What if you experience a loss using money that you get from debt? You will get in trouble because the money is gone in the market.

Evaluate Your Investment Portfolio Regularly
After you invest, evaluate your investment portfolio regularly. Always monitor your investment, whether it experiences positive growth or not. After that, determine the future strategy that you will take next.

There are many investment options available. For those of you who are new investors, bonds are a relatively safer investment choice. If you want a sharia investment product based on sharia principles, you can choose sharia bonds.

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

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

Online investment in Islamic bonds at PermataBank is quite easy. You just need to attach a valid Indonesian citizen ID card or foreign passport, have an account at PermataBank, and have a Bond Single Investor ID (SID).