Investment

Investment Types

You do not have savings? In today almost all people have the savings, even a bit of money not directly transferred to salary savings. Besides practical for the employer, this system is also very helpful for us who often feel lazy to go to the bank to save money at the beginning of the month for sure long queue. And by including salary into savings and just taking what we need it will greatly help us in controlling our expenses and make sure there was money to "survive" until the end of the month. This savings is one type of investment that we can choose. In addition to savings, there are many other types of investments such as deposits, gold, stocks, mutual funds, insurance, property.

In determining the type of investment, is useful to look first goal of each of our funds are collected. Let's see how the example. For example we have set aside funds every month is divided into several appropriations of the school fees of children, sacrifice, pilgrimage, buy houses, buy vehicles, the cost of returning home, vacation expenses, medical expenses, reserve funds, etc.. Each of these funds we needed to group which is very short-term (given month), short-term (less than 2 years), medium term (2-5 years), and which in the long term (over 5 years) .

Once we set period of time used, we can begin to choose the appropriate type of investment. One method that can be applied is for a very short term we can still put in a regular savings with the results this time around 2% per year. For the short term, we can try to deposit that gives the results / greater interest than ordinary savings, but has a relative risk does not exist (for values up to a certain amount, according to insurance policies), which is about 4% per year.

For the medium term, we can try to invest in financial markets, such as government bonds or mutual funds in the money market. This type of investment to produce results greater investment of deposits, which is about 9% per year but the risk is there but it is also relatively small. As for the long term, you can try a mixture of mutual funds and stock markets, or if you have any type as an aggressive investor who can be tried with stock mutual fund investments. The results are quite tempting, for the mixture to approximately 25% per year and the stock could reach 50% per year (note: this is the average performance of investment managers in 2007, and will not necessarily produce the same number years next).

But again keep in mind, the greater the results we will get the greater the risk that we could carry. Why is this stock mixture and recommended for long-term investment, this is because in the short term value of our investment will greatly fluctuate up and down the aliases quickly and sharply, so if we do not withdraw them at the right time ie when the value was higher than at the time we save, then we will experience a loss instead of profit. Although in the short run up and down quickly and sharply in accordance with the development of stock prices in the stock market, but the trend over the long term this will happen increases. It is recommended to invest in the long run. To you who have not had experience investing in the stock market, should be handed over management of our funds on the investment manager has enough names in the form of mutual funds.

For those of us who have the type of conservative, just trust savings and deposits are actually not the problem, the most important thing we have the savings to our future. But we need to take into account the inflation rate back in our beloved country is, whether the savings that we are prepared to cover the costs we will remove it in time? Back to you, please select the exact type of investment alternatives that comfortable for you. Happy investing ...