estadosecidades.com– How the Investment For a Young Child in 5 Easy Steps. Has a personal investment in current financial markets has become a lifestyle productive among young people or workers novice (first jobber). The long view that the investment can only be done by people of mature age, are no longer relevant.
This look from the demographic data of investors in Indonesia are more and more dominated by the younger age group of milennial.
Based on the data Kustodian Sentral efek Indonesia (KSEI), it was noted that the number of investors or Single Investor Identification (SID) in the domestic capital market until the end of 2020 reaches of 3.87 million investors. That number increased by 56% compared to the position of the end of 2019.
From the number of investors that, almost half are under the age of 30 years while the age range of 31-40 years to reach 25% of the total number of domestic investors in 2020. In other words, 70% of investors of the capital market in Indonesia is a young child.
If we’ve rounded want to start investing in the stock market, try to follow the guide way of investing the financial market following this :
Guide How To Invest
- Understand the Concept and Investment Risk
Insurance is basically a mechanism of management of financial risks the easiest. Every thing that poses a risk to the financial condition of a person, should indeed insured. Although not all things can be insured, but at least there are two types of Insurance which is very important to have; i.e. life Insurance and health Insurance.
For young people, two types of protection that are often less ignored because they felt the risk of ill and died not too big. Protection of life and health is sometimes regarded as the needs of mature age are already married of course. Of course, the assumption that less precise, because no one can predict the arrival of the risk of illness or death.
So, when you talk to the Insurance which is more important, then the answer is, buy life insurance protection and purchase protection of health are equally important. But, if still in the situation should make it a priority expenditure of premiums, can consider the options based on the following guidelines.
- Have Financial Goals Clear
The next step if You want to start investing is to register financial goals to be achieved through investment. Financial objectives in a simple interpreted as a condition to be related to the target fund financial limited at a certain period. By having a financial goal, a way of investing that You do can be more focused because it has a goal and strategy is clear.
Financial goals can also be for according to the target time. First, the purpose of short-term financial is a financial goal to be realized in less than 3 years. For example: funds back and forth and the year-end holidays, the money fund is the face of the house first, and so forth. Second, the financial goals of the medium-term that is the target of the funds that You want to be collected in a span of 3-5 years. Example, the fund married 3 years, the fund graduate school, and others. Third, long-term financial goals that target funds to be achieved in a span of over 5 years. Included here are pension funds, fund children’s education in the university, and others.
Of each financial goals such, determine the funds that we want to achieve. For example, the fund married 3 years of Rp100 million, funds the advance of the first house of 150 million, and so on.
- Define Investment Instruments
Once you have a financial goal that is already categorized based on the term of the achievement, then You can start to determine the choice of investment instruments appropriate time horizon, financial goals and Your risk profile. Time horizon is very important because it will affect the assessment of the risk of an investment instrument and its effectiveness in helping You achieve the target fund has been determined. For example, if Your financial goal is to set up a fund married 3 years of Rp100 million, then the choice of the right investment is the instrument with the level of risk low-medium such as money market mutual funds and fixed income mutual funds. Stock is not recommended for the purpose of financial 3 years because of the risk of fluctuations in the price is too high in the short term.
When referring to a grouping of risk based on the time horizon, then You can wear the reference as follows.
- Financial goals short-term < 3 years old
- Financial goals for the medium term 3-5 years
- Long-term financial goals in over 5 years
- In addition to considering time horizon, in choosing investment instruments, make sure You pay attention also to the profile risikomu as an investor. How to check? You can fill out the sheet charging the risk each time to start investing.
- There are 3 categories of risk profile that investors are conservative, moderate and aggressive.
Conservative investors character is he like a stable investment, not want to principal investment amount (the initial capital) is reduced, less like the fluctuations in the value of the investment. Then, the investor moderate that investors can receive price fluctuations, hope is the initial capital is not exhausted at all, and have been quite satisfied if his investment grow beyond the rate of inflation and bank deposits. Last, aggressive investors, i.e. investors who are ready to take the risk of losing capital investment, comfortable with sharp price fluctuations for want of investment grown many-fold above the deposit rate (risk free rate).
- Open An Investment Account
Once you have plan financial goals clear the following options instruments on investment, it’s time to execute the plan. To invest in the stock market, You must have investment accounts. How to open an investment account is not difficult. You can do it through financial institutions such right in the company’s securities when You want to stock investing, or investment management company if they want to start investing in mutual funds online, and others.
Usually needed to open an investment account is the identity card of the private, taxpayer identification Number (TIN), bank account number, form filling initial investment, and other requirements that You can check in the related financial institutions. Today start investing more easily with the existence of the company financial technology (fintech) that allows You to start only from the gadget without having to go to a physical office related companies.
O, yes, to capital investment is also not expensive, you know. You can start investing with a minimum capital. For example, a mutual fund investment can be started simply by 100.000 saja. Stock investing is also not expensive that is enough to buy 1 lot (100 sheets) stock as a prefix.
- Run Investment Discipline
In investing, You need to have the right strategy. Strategies to help You optimize the capital that You have in order to achieve the target investment financial goals. For example, for investment in mutual fund shares, You choose the strategy of dollar cost averaging (DCA) or regular investment every month because You do not have time to monitor the movement of the stock market daily. There is also the strategy of value investing in stock investing, and other strategies that can be selected based on convenience and financial objective.
Do not forget to evaluate the performance of Your investments periodically at least every semester. You can check the performance of the report investment results are regularly submitted by the securities or the relevant investment manager.
Five guide how to invest in the above can help You to start investing
Before you start investing it is good when it starts with having the readiness of financial. Some of the indicators of the readiness of financial among which are: the condition of the cash flows of the financial surplus or deficit, the burden of debt repayments controlled does not exceed 30% of the value of regular income monthly, and already have an emergency fund of at least 30% of the target value of the emergency fund and exciting.
So also the ownership of private Insurance, strive to already meet the basic Insurance needs such as health Insurance and life Insurance to protect the financial condition of the various risks of life. We can also choose the Insurance that comes with the benefits of investment products, such as Manulife Investment Protector or the other can be seen here.
Well, when the indicator of readiness are met, we can set up the step to invest next. Conversely, if it turns out that financial conditions do not meet the readiness, it’s good to focus first fix it so they can start investing with a sound financial condition.