7 Best Investment Types Suitable for All Ages

7 Best Investment Types Suitable for All Ages

Currently, society is striving for a better future. For example, they will try to carefully manage and examine their finances. One way to control this is through investment. However, in Indonesia, there are many best investment types to choose from.

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So, if you're a beginner, which is the best investment type to choose? Are there investments suitable for all ages? Brick will summarize and provide all this information to you in detail and clarity.

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Understanding Investment

Investment is the act of placing resources or capital you own with the aim of getting better returns in the future. The faster and more you move to invest, the sooner you will reap the benefits.

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Investment is not only to prepare for future needs but also to protect assets from the threat of inflation. To give you a more detailed understanding of inflation, here are the best investment types you can choose from.

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Best Investment Types

There are various best investment types you need to know:

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1. Mutual Funds

According to Law No. 8/1995 concerning the Capital Market, mutual funds are a container used by a company to collect capital from the public, which is then invested by an investment manager. If you are an investor, you only need to provide capital to be managed by an investment manager in a securities portfolio. The securities portfolio includes money market products, bonds, or stocks.

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In general understanding, if you want to invest in mutual funds, you don't need to invest tens of millions of rupiah. Instead, you only need to invest a minimum of Rp100,000. Mutual funds are a safe long-term investment. The advantage of investing in mutual funds is that the funds are managed by investment managers, so you don't need to monitor their development every day.

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2. Stocks

The most commonly known investment by the public is stocks. When you purchase stocks through the Indonesia Stock Exchange, you become a shareholder and are entitled to dividends depending on the percentage of shares. You will also profit from the difference in the selling price of stocks. Stocks are easily tradable, so you can transfer them to others to make a profit.

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Stock investments can be said to offer higher returns than other types of investments. However, what needs to be cautious is that stock prices are fluctuating, and the return is quite high because it depends on social-political conditions or holidays in Indonesia.

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3. Time Deposits

If you want to find the best investment with low risk, you can try time deposits. Many beginner investors prefer time deposits over other types of investments because they are safer.

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One way to start a time deposit is to visit the nearest bank. If you deposit a large amount of funds for a long time in the bank, the more profit you will gain. Time deposits offer higher interest rates and have clear maturity dates. For example: three, six, up to twelve months. However, you need to know that if you withdraw funds before the maturity date, you will be subject to penalties.

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4. Bonds (Debt Securities)

In general, bonds are medium or long-term debt securities that can be transferred. The contents are that the issuer will pay interest in certain periods and repay the principal debt at a time determined by the bondholder. For bondholders, they will receive coupons.

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The time range in this type of investment is between 1-10 years. In Indonesia, there are three types of bonds you need to know:

• Government Bonds: state debt securities issued by the government.
• Corporate Bonds: debt securities issued by private corporations or SOEs.
• Indonesian Retail Bonds: debt securities issued by the government for sale to individuals through government-appointed selling agents.

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5. Real Estate

Currently, one of the best investments you can make is to choose land or buildings. Because the value of these properties will increase from year to year. In fact, the percentage of increase ranges from 10-25% per year. However, you need to prepare more than enough funds to manage land and especially buildings.

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You need to ensure that everything from agreements to forms is well-planned. This is to anticipate if there is any damage that occurs in the building.

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6. Gold and Precious Metals

Since ancient times until now, one of the best investments you can make is to buy and store gold. This investment is considered a long-term investment. The prices of gold and precious metals will rise, but the increase is not too high. Nevertheless, gold and precious metals are considered safe investments.

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7. Insurance

Insurance is a common and widely used thing by Indonesian society today. One thing to note is that insurance is an alternative investment. There are many types of insurance you can use, ranging from vehicles, life, or even body parts.

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Brick provides an API for wealth management or investment platforms, making it easy to fund users' accounts. Then, it can provide complete financial data for users, making it easier for users to develop assets. ***

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