Investment is an interesting topic to discussed to achieve financial freedom. During the pandemic, the uncertainty in investment is increasing so does the opportunity in investment. In today's episode, we will discuss about investment with Subiakto Sukarno, Ph.D., the SBM ITB lecturer in Business Risk and Finance Interest Group.
Can we start investing during the pandemic?
Investment can be started anytime. During the pandemic situation the economy might become unstable, but the opportunity of investing also increased in the severe sector for example in the pharmaceutical industry, expedition, and online platform industry. So, we need to get an opportunity and still kept set aside more money for daily needs during pandemic Covid-19.
Money is not the goal in investment
Money is just a medium to achieve our goals. The first thing that we need to do before investing is analyzing what the goals we want to achieve, such as pension funds, housing funds, wedding funds, or any specific event. Money can bring meaning to be our goals of happiness.
Investment risk
The most important in investing is we need to know the risk before investing. Knowing about investment instruments in the short term or long-term investment. Better not using high-risk investments for short-term goals. Investment instruments have two sides of the coin such as return and risk. The higher the risk also the higher the return.
The next risk we need to know is the liquidity of our investment, for example investing in land is less liquid than a bank deposit. Know the differences in real assets such as land, house, and gold. And financial assets such as bonds, stock, and mutual funds.
After knowing the risk of investment, we have to adjust the risk profile of investment with our preference. It is called Portfolio Management. Remember, don’t put all your eggs in one basket, don’t invest our money that we can’t afford to lose.
Current investment trends for millennials
Cryptocurrencies that are trending lately also can be included in investment instruments, but we have to know the characteristic of the instrument, for some people the risk is too high. So, it’s important to know our risk profile before starting investment.
Another investment trends for millennials are the development of the internet makes investing even easier today. We can do investments everywhere with our smartphones. Using financial technology platforms is very recommended for millennials starting investment because it makes investing easier. But still, we have to know the basic knowledge in investing before using those platforms. And don’t forget to state your financial goals before investing. So, let’s start investing Sobat SBM.