UNAIR NEWS – Easy access to information and widespread education about financial planning and investment has made quite a few young people interested in practicing it in the real world. Noting the euphoria, Dr. Wisudanto, SE., MM, CFP, ASPM gave several tips to beginners and students in starting investments.

Choose the appropriate investment instrument

There are various forms and investment products. There are investments in the real sector such as land, houses and apartments. Or investment through banks and capital markets. Investments through banks can take the form of deposits. Meanwhile, 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, including risks in the time, return or asset dimensions," explained Wisudanto, a management expert from the 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. Don't use short-term money, like money to pay for college.

Investments in the capital market are not liquid. No one can guarantee that by buying shares today, the price will be the same tomorrow.

"It should be noted that if investing in the capital market is long term, more than one year or even the life of the company because investing means we own part of the company," he explained.

Wisudanto also does not recommend trading practices for someone who adheres to sharia principles. This is because trading transacts something without a clear basis and is speculative in nature. Meanwhile, transactions must have a clear basis, both in terms of science and needs.

Understand the Product

Before deciding to buy an investment instrument, someone also needs to understand the product they are going to buy. For example, if investing in the capital market, someone must understand before buying some shares of a company or issuer on the capital market. Such as knowing what products the company sells, or where the company's income comes from, and what its business processes are.

Especially if you want to invest sharia-compliantly in the capital market. Apart from knowing the company's source of income, it is also necessary to find out whether the company or issuer is registered on the OJK Sharia Securities List (DES). To avoid fraudulent investments, you need a lot of literacy.

"Don't rush into investing, increase your literacy, understand assets and products, take part in seminars organized by appropriate institutions for greater clarity," he continued.

Check the Legitimacy of the Institution

Then, it is very important to check the legitimacy of the institution for investing. Make sure the institution has permission from the authorities as regulated by law. For example, if you want to buy land, you should go to a notary for help in ensuring the legality of land ownership. If you want to invest in the capital market, then leave it to capital market experts such as the Indonesian Stock Exchange.

"To check the validity of an institution's permit, go to the authorized agency to ask for instructions regarding the legal aspects of the institution for investment," said Wisudanto.

Long Term Analysis

Before investing in the capital market, first analyze several things related to the issuer whose shares you want to buy. There are many ratios that must be analyzed, including return of investment (ROI) and return of equity (ROE). Simply put, ROE and ROI are the level of profit that can be obtained from the rupiah units invested in the company.

"Apart from that, the most important thing when buying company shares is to consider the future value, " he explained.

Future value is the value or potential of a company in the future. For example, perhaps currently the share price of a company that trades nickel is still cheap, for example 2,800 per share. However, due to the large demand for making batteries such as for laptops, cellphones and electric cars, a few years later the share price of companies that trade 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 time for a better future. Make good use of your time, by reading a lot to prepare yourself for the future.

"Take advantage of the time you now have, age will never come back, study a lot, read a lot, especially 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

Source: http://news.unair.ac.id/2021/03/31/pakar-unair-beberkan-tips-investasi-bagi-pemula/