Before we discuss further about the types of investments and how to invest, please note that investing is an activity of placing funds in one or more types of assets for a certain period, with the aim of earning income or increasing value. POLA SLOT PRAGMATIC In simple terms, investment is one of the tools to realize our financial goals.
Basically, everyone’s financial goals are different. For example, a 25 year old person certainly has different plans and goals than a 50 year old person.
Based on the purpose, investments are divided into long-term, medium-term and short-term investments. POLA SLOT GACOR HARI INI Different timeframes, of course, different investment strategies and instruments.
Types of Investment Based on Purpose
1. Short Term Investment
Short-term investments last between less than one year to three years.
For example, a 25-year-old youth intends to get married in three years. So he needs fresh funds to organize a wedding that is not cheap.
Given this need, POLA GACOR the youth are advised to invest in low-risk instruments in the sense that they have stable fluctuations in value, high liquidity so that they are easily converted into cash, and can generate a steady income. Some of the suggested instruments for him are deposits, money market mutual funds, or short-term government bonds.
Can this young man invest in stocks for this financial purpose? You can, but of course it’s not recommended. The reason is that stocks are instruments that have high fluctuations in value in the short term. Buying stock is the same as buying a business, and business growth certainly cannot be assessed only in the short term.