UM Surabaya Lecturer Shares Investment Tips for Beginners

• 26 Dec
• 2022

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UM Surabaya Lecturer Shares Investment Tips for Beginners

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• By Uswah Sahal
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In the midst of the flurry of information technology developments in the economic sector related to investment, there are not a few recent rumors about fraudulent investments, coupled with the interference of influencers to deceive many people, especially young people who have ambitions to get rich quick but don't want to be hard.

In this fast-paced era, investing is the right activity to achieve various financial goals such as vacations, buying a vehicle, buying a house, apartment, wedding expenses, children's education expenses, and retirement funds. But before that, one needs to be careful before starting an investment so as not to get caught up in fraudulent investments or do it with hesitation.

UM Surabaya economist Arin Setyowati shared a number of tips for beginners so they don't hesitate and don't get fooled when starting an investment.

Arin said, the first thing to do is to study deeply about investing. Before plunging into the world of investment, one needs to be intense in learning the ins and outs of investment and all its derivatives.

"This is an effort to increase financial and investment literacy so as to minimize the risk of fraud. In the world of investment, there are many foreign terms that need to be explored in depth,” said Arin Monday (26/12/22)

Second, set specific investment objectives and timeframes. The crucial thing for novice investors is to determine the investment period. Because this affects the nominal investment and the type of instrument chosen to achieve the required funds.

"The shorter the investment period, the nominal that must be allocated is usually relatively larger, the choice of instrument will also fall on a safer, stable or low volatility one," he added.

Third, determine the best type of investment. There are various types of investments that exist in the stock market. Among them; stocks, bonds, deposits, and others. Each type has its own advantages and benefits, and of course with different risks. The order of the types with the highest risks and rewards are stocks, mutual funds, bonds, and lastly deposits.

According to Arin, a safe investment instrument is an investment that has been supervised by the Financial Services Authority (OJK) as a supervisory body for activities that intersect with the financial world in Indonesia.

Fourth, diversification of investment instruments. For novice investors, choosing just one instrument requires a lot of learning, what if there are many investment instruments that must be taken for diversification. So, the answers don't have to be at the same time, everything can be done in stages.

This diversification stage is carried out in an effort to minimize risks that may occur in the future. When one sector weakens, at least the other sectors strengthen. So, one doesn't lose a lot of money.

Finally, carry out investments in a disciplined manner. During the investment process, the things that need to be carried out in a disciplined manner by novice investors are consistently setting aside funds, of course with a percentage of fund allocation that makes novice investors comfortable and enjoyable. Typically, the allocation of investment funds is allocated at 10% to 30% of income.

"This means that it needs to be supported with an accurate strategy so that the capital owned is optimal. Furthermore, it is supported by regular investment performance evaluations,” concluded Arin.