Best Investments For Beginners

8 Best Investments For Beginners and How They Work

Posted on

Best Investments For Beginners? Trendy, cheap, and easy to do make the reason for investing increasingly to be excellent among millennial and Z generations today. Coupled with a variety of online applications that make access to play investment online, thus making investment enthusiasts higher. Such as investing in stocks, gold, and online mutual funds.

However, as the stock grows in popularity and the online features that support its original purpose of self-investment are fading away.

Although today there are still many people who invest because they are aware of the importance of investing for healthy finances. But it turns out that there are still many people who play investing by simply investing money, without properly understanding the purpose of investing, the risks, and strategies and ultimately leading to losses.

Well, for those of you who really want to invest the right way. Let’s start again with the most basic things about investing itself. So that in the future you can prepare yourself better before investing.

What is Investing? – Explore Where and How to Invest

what are the 4 types of investments

The most basic thing to know first is what an investment is. Investment is an investment activity.

The full explanation of investment is the activity of placing capital in the form of money or other valuable assets into an object, institution, or party with the hope that the investor or investor will benefit after a certain period of time.

Investment is one way to multiply the assets you have without the need to make more effort. So by investing you only need to invest and wait for your funds to multiply.

In general, investors who take advantage of the investments they use to achieve certain goals include:

  • Earning returns/profits
  • To develop business
  • Guarantee in business
  • Protect finances from inflation
  • Preparation for certain funds/expenditures in the future

Investments are usually used as part of financial planning for the long term, such as for business capital, buying a house, marriage costs, and retirement funds, or can be referred to as long-term investments.

Although it can also be for the short term, such as funds for vacations or buying the desired needs or goods or it can be called a short-term investment.

Also Read: 4 Types of Low-Risk Investment that is not known to many people

8 Types of Investments and How They Work

types of investments for beginners

For those of you who want to try investing, it’s a good idea to find out what types of investments are the most popular, because the more popular an investment is, the greater the return/profits you get because of the high potential for growth and high interest.

Here are the types of investments that are popular in Indonesia and you can try:

Best Investments For Beginners With Mutual Fund

Mutual funds are the type of investment that can be said to be the most suitable for beginners who still want to learn to invest but still avoid high risks and generate money.

Many companies that provide mutual fund investments offer start-up capital at a very low cost.

In addition, you do not need to monitor all the time because the funds you spend are already managed by the investment manager.

Stock Investment

Currently, stock investment is the most popular instrument.

By buying and selling stocks correctly, you can potentially get many times the profit from your initial capital.

It can even be said, stocks are currently the only investment instrument that can provide the highest returns than other types of investments.

However, playing stocks is not as simple as buying and selling stocks. There is a slick strategy and management in it in order to minimize risk and maximize profits.

Best Investments For Beginners With Gold

Gold and precious metals are some of the investment instruments that are well-known among the people of Indonesia from the past until now.

This investment is also suitable for those of you who want to have long-term investments that tend to be safe because the price of gold and precious metals will continue to rise.

Gold investment can also be said to be an investment with cheap capital, if you do it online and use a gold saving system. You can save gold starting from tens of thousands to hundreds of thousands of rupiah.


Bonds are medium and long-term debt securities that can be transferred.

This note contains a promise from the issuer to pay interest in the form of interest in a certain period and pay off the principal debt at a predetermined time to the bondholders. The yield of interest received by bondholders is a coupon.

Bonds are a good investment if you want a safe investment that is guaranteed by the government. Because the risk of default on bond investments is quite minimal.

Best Investments For Beginners With a Time deposit

Time deposits have a higher interest rate when compared to regular savings. In addition, time deposits have a clear maturity date, usually 3 – 12 months.

Although the profits from this investment are not as big as stocks, mutual funds, and gold. But time deposits are inflation-resistant investments and of course, their security is guaranteed by the bank.

The point is, if you want to invest in time deposits if you want a bigger profit, it means that you will also have a larger nominal amount of money that is entered as a deposit.

Also Read: The Best Investments That Make You Rich

Property Investment

If you have a large enough capital starting from hundreds of millions. You can directly invest in property as well.

As is known, land and buildings are very promising long-term investments. Property values ​​that continue to increase from year to year reaching 15-20% are certainly very tempting, right? Especially if the location is strategic.

Property investment is also known as an investment with minimal risk and a guarantee of high returns. Because the property is a basic need of many people, it is impossible not to have an unsold property.

In investing in property, you don’t have to occupy it, you can rent out the property, and still earn even if you leave it to sleep.

Unit Link Insurance

Unit link insurance or investment-based insurance is a combination of 2 products, namely insurance and managed funds such as mutual funds.

Generally, the premium you will pay is converted into units. This union will be divided into 2 types, namely to pay insurance costs and to invest. So the premium paid is usually higher than other investment products.

Unit link investment is suitable for those of you who not only want to invest but can also get insurance benefits. Whether it’s insurance to protect physical and mental health and various unexpected things that can happen in the future.

Best Investments For Beginners With Peer to Peer Lending

Although it is still relatively new, there are quite a lot of enthusiasts from this investment, you know!

This is because many fintech lending-based companies have implemented this business model. In peer-to-peer lending, you basically lend some money to parties in need, both individuals and business entities.

With P2P Lending investments, investors will receive a return of principal and interest on the loan. That’s why P2P Lending investment has become the newest favorite instrument because of its convenience and benefits.

The profit from investing in P2P Lending itself can reach 12-16 percent per year.

Also Read: What is a Financial Investment?

Know Which Investments Fit Your Needs and Maximize The Profits

Whatever type of investment you choose, all of them still need a good strategy and understanding. Don’t go to the trouble of collecting money for investment capital and even end up losing because you don’t understand the type of investment chosen, both the method and the risks.

Make sure to prepare yourself carefully in advance both in terms of finances and knowledge so that investment activities run smoothly and rain.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.