Viralnews77 - Investment is one of the strategic factors in economic activity. Investment is also known as investment.
Investment is the activity of investing money or capital (precious assets) for the purpose of making a profit. The party or person who makes an investment is called an investor.
Quoted from the book 'Basics of Investment Management' by Nila Firdausi Nuzula and Ferina Nurlaily, in another sense investors are parties who invest by buying financial assets and expect prices to increase when they sell their assets.
Investors are classified into two, namely individual investors and institutional investors which usually consist of entities, companies, and institutions.
Then, what is investment?
Understanding Investment
The following is the definition of investment according to several experts and institutions:
1. Reilly & Chocolate
Investment is a person's willingness to allocate money in a certain value in the present to obtain income in the future.
2. Bodie, Kane, & Marcus
Investment is a person's willingness to allocate money or valuable resources at this time and hold it for a certain time in order to receive profits (profits) in the future.
3. Dornbusch
Investments are expenditures given to increase or maintain components of capital goods.
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Investment Type
There are various forms or types of investment. Some types of investment are:
Property investment
Property investment is an investment in physical form. In general, property investment can be very profitable, because the price will continue to increase every year.
Examples of property investment are buying land, and buying a house which can then be sold or rented.
Gold Investment
Gold is the easiest and most classic form of investment. Gold investment can be in the form of precious metals, jewelry, gold bars and gold vouchers (digital gold).
Mutual Fund Investment
Mutual fund investment is defined as a forum used to raise funds with investors to invest in an investment manager's portfolio.
Deposit Investment
Deposit investment is used if the existing money will be stored for a long period of time. The term of the deposit is between 3 to 12 months.
The types of deposits that are usually chosen by the millennial generation are time deposits, certificates of deposit, and deposits on call.
Stock Investment
Shares are a sign of ownership in a company. The higher the risk of a stock, the higher the profit to be obtained, so it is necessary to be able to analyze the accuracy of capital placement for investment.
Cryptocurrency Investment
Currently Cryptocurrency or crypto currency is increasingly known to the public to be used as a type of investment.
Cryptocurrencies have no clear fair value. The easiest way to do this is to buy coins.
The best coins are coins that are used by many people today and have more massive potential in the future, as quoted from the book 'Momento Cryptocurrency Trading Techniques' by Alief K.
Investment Example
Examples of investment for example in the type of property. In 2015 Asri bought a house in Nusa housing in Bekasi for Rp 200 million, with the intention of investing without being inhabited.
Then, after 7 years to be exact in 2022, the house in the housing has been priced at Rp. 500 million, so that the investment gain Asri gets if he sells the house in 2022 is Rp. 300 million.
That's an explanation of what investment is, its types, and examples. Hope it adds to your knowledge