What is a long term investment?
Are you currently thinking about investing long term? Have the people around you started long-term investing activities and are you interested in following in their footsteps? Let’s look together, what is a long-term investment.
You will find out another type of investment, namely long-term investment.
What is the meaning of a long-term investment?
If the short-term investment, the characteristics include a small level of risk, capital is not too large, liquid, and a short period of time to achieve profit, then long-term investment is the opposite.
In long-term investments, the funds invested will be managed in a sustainable manner and can only be disbursed when they are due. Usually long-term investments have a minimum time period of one year. The average long-term investment runs for more than five years.
According to the Indonesia Stock Exchange, it can be said that long-term investment is the same as investing in wealth or capital from a person or company to earn a steady income.
One of the benefits of people who do long-term investment activities is for personal financial savings that can be used in old age, so they don’t have to bother working hard while enjoying old age.
On a larger scale, long-term investments can aim to act as the controlling party of a particular company or person through invested capital, as well as to obtain passive income at certain times such as interest, dividends, and rent.
For those of you who have thought far ahead, then you need to know which investments are suitable for the long term.
Types of Long-Term Investment
Shares are securities that are proof of investor ownership in a limited liability company or company. You will benefit from dividends and have the opportunity to make profits by buying and selling shares on the stock market. Now you can invest in stocks easily. You just need to choose the right broker to help you.
FBS provides a trading account for those of you who want to invest in stocks which are one of the most popular long-term investments. At FBS trading platforms you can trade more than 100 shares of various international companies.
Gold is one example of a long-term investment and its value is relatively stable compared to the value of the currency. Buying gold is fairly easy, but you still have to be careful in transacting. Always use the services of a trusted party for investment activities.
At FBS, you can trade gold and silver. Open an account at FBS and start trading.
Bonds are debt securities submitted by the borrower to the lender. In the securities, your name is recorded along with the long due date of the loan and the interest. Bond investment period is valid from 1 year to 10 years. From the business side, bonds serve as an opportunity to get funds to advance the business. While on the lender (investor) side, bonds can be a long-term investment.
Property investment is considered another form of long-term investment. One of the reasons, could be because the price of land can rise every year. However, property investment usually requires a large amount of capital to get started. Of course, with the potential for some returns.
- Mutual Funds
Mutual Funds can also be included as long-term investments. The advantage is that there are many options, including money markets, stocks, and bonds that can be adjusted according to funds and risk. For someone who is still looking for investment experience, mutual funds are an option to consider because investment activities are carried out by investment managers.
How to start a long-term investment
- Get to know the instrument
Make sure when you dive into the world you’re about to enter, you’ve learned how it works. This is useful so that you can know the risks you will take.
Investment is a field that can be studied. As long as there is a will, you certainly can. A success will not be achieved if there is no strong willingness to learn as much as possible.
- Getting Started
When you feel all the provisions and capital are ready, you may look to get started. By starting an investment, the opportunity to enjoy the value of the asset if it goes well could be even greater. Of course, with sufficient knowledge and capital.
At FBS, you can gain knowledge about trading as they have lots of educational resources including videos, guides and dedicated support.
All investments have risks, including long-term investments. So be careful in making investment maneuvers, and don’t be tempted by offers that are too good to be true.
To conclude, if you have a plan and understand the various long-term investment there are, then you can achieve success with a regulated and trusted broker such as FBS.
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