UNAIR NEWS – Easy access to information and widespread education on financial and investment planning have attracted many youths to practice it. Responding to this euphoria, Dr. Wisudanto, SE., MM, CFP, ASPM gave some tips for beginners and students on making investment.
Choose the suitable investment instrument
There are various investment products. There is investment in the realty sector such as land, houses and apartments. Or investment through banks and the capital market. Investment through banks can take form of long-term savings while for the capital market, the assets can be in the form of securities.
“If you want to invest in the capital market, you need to learn more about the risks, both in terms of time, return, or asset,” explained Wisudanto, a management expert of Faculty of Economics and Business, Universitas Airlangga (FEB UNAIR).
However, if you want to invest in the capital market, the money used must be money that will not be used in less than one year. Do not use short-term money, such as money for paying tuition fees.
Investments in the capital market are not liquid in nature. No one can guarantee that by buying shares today, the price will stay the next day.
“It should be noted that investing in the capital market is long-term, more than one year or even the entire life of the company because investing means we own a part of the company,” he explained.
Wisudanto also does not recommend trading practices for someone who adheres to sharia principles because trading transactions are made without a clear basis and is speculative in nature. Meanwhile, sharia transactions must have a clear basis, either from a scientific or necessary perspective.
Understand the Product
Before deciding to buy an investment instrument, one also needs to understand the product. For example, if investing in the capital market, someone must understand some things before buying a portion of the shares of a company or issuer that is on the capital market. Such as knowing what products are sold by the company, or where are the company’s revenue sources from, as well as how the business processes are.
If you want to invest with sharia principles in the capital market. In addition to knowing the source of the company’s income, it is also necessary to find out whether the company or issuer is registered in the OJK’s Sharia Securities List (DES). To avoid fraudulent investments, a lot of literacy is needed.
“Do not rush to invest, improve literacy, understand assets and products, participate in seminars organized by the appropriate institutions to make it clearer,” he continued.
Check the Legality of the Institution
Then, it is very important to check the legality of the institution to invest. Ensure that the agency has a permit by the competent authority as stipulated in law. For example, if you want to buy land, you should go to a notary for assistance in ensuring the legality of land ownership. If you want to invest in the capital market, leave it to a capital market expert such as the Indonesia Stock Exchange.
“To check the validity of the agency’s permit, go to the authorized agency to ask for instructions according to the legal aspects of the institution for investment,” said Wisudanto.
Long Term Analysis
Before investing in the capital market, first analyze some things related to the issuer whose shares will be purchased. There are many ratios that must be analyzed, including return on investment (ROI) and return on equity (ROE). Simply put, ROE and ROI are the levels of profit that can be obtained from units of rupiah invested in the company.
“In addition, the most important thing when buying company shares is to consider the future value, ” he explained.
Future value is the value or potential of the company in the future. For example, maybe currently the stock price of a company that trades nickel is still cheap, for example 2,800 per share. However, due to the large demand for batteries, such as for laptops, cellphones and electric cars, a few years later the stock price of companies trading nickel became 8,000 per share.
Learn more, read more
Wisudanto emphasized that the most valuable thing is time. So when you are young, invest your time for a better future. Make good use of the time, by reading a lot for the future.
“Take advantage of the time we have now, age will not come back, learn a lot, read a lot, especially on God’s laws for the benefit of the people in the future, is the most valuable investment,” he concluded. (*)
Author: Galuh Mega Kurnia
Editor : Binti Q. Masruroh
