Investment (Part 1)

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Investment (Part 1)

According Kertonegoro (1995, 4) choice of investment of time can be divided into two, namely the short term or long term. Short-term investments are investments that the time for one year or less than one year, whereas long-term investments are investments with longer maturities or no maturity to know.

Investment as well as to increase income each person also carry financial risk if the investment failed. Investment failure is caused by many things, among which is the factor of safety (whether due to natural disasters, political or caused by human factors), the rule of law, and others.

In investing there are two kinds of assets, namely real assets and financial assets, which together can be considered as a means of investment. Real asset is an asset that has a form. Examples are land, houses, gold and other precious metals. Investing in real assets is common. For example, buying a house, and then rent them out, so get a monthly income. Financial asset is an asset that his form is not visible, but still has a high value. Generally there are financial assets in the banking world and also in the capital market, in Indonesia known as the Indonesia Stock Exchange. Some examples of financial assets are money market instruments, bonds, stocks and mutual funds.

The investment also recognize the existence of ROI, ROI (return on investment) or ROR (rate of return) is the ratio of money gained or lost on an investment, relative to the amount of money invested. The amount of money gained or lost can be called interest or profit / loss. Investing money can be referred to as an asset, capital, principal, investment cost basis. ROI is usually expressed as a percentage and not in decimal value.

ROI does not indicate how long an investment. However, ROI is often expressed in units of annual or annualized and often also expressed to a calendar or fiscal year. ROI is used to compare the return on investment between investments that are difficult compared using monetary values. Next.

Healthy | Smart | Rich, at: 5/14/2011