*Update : 1 Mar 2024
Investment is becoming a trend in today’s generation with various types of investment products, ranging from low to high investment risk. But many ask if investing in just one type of investment instrument is the right way?
Before starting to invest, first find out your risk profile because it will determine the type of investment instrument that is right for you. Information about the risk profile can be found here.
After knowing the risk profile, always remember the principle of "don't put all your eggs in one basket". If all the eggs are placed in one basket and the basket falls down, all the eggs will break at once. Just like investing, we are encouraged to diversify so that if something happens in one of our investment "baskets", we still have other investment "baskets".
Investment Diversification is often also associated with the portfolio model, where we divide our investments into several types of instruments according to our risk profile. For example, if we have a moderate risk profile, then we can divide our investment into money market mutual funds, fixed income mutual funds and equity funds. When the stock market experiences a significant decline such as the early days of the pandemic, we still have investments in money market mutual funds that we can use for urgent needs without having to immediately sell the portion of our investment that is currently under pressure.
In addition to diversifying, we can also carry out averaging strategies in declining market conditions. Instead of panic selling, it's better to focus on our long-term investment goals and use the decline as an opportunity to top-up and get a lower average price. So that when the capital market has improved as it is today, our portfolio can work more optimally.
In conclusion, by diversifying, we can still invest to develop our assets with a calmer mind.
So, if you want to start investing, just invest in BCA via Welma feature in myBCA application. At myBCA, you can register an investment account (SID) and can diversify your investments in various instruments such as Money Market Mutual Funds to Stock Mutual Funds, as well as IDR and USD currency bonds with short to long tenors. What are you waiting for? Let's start investing!
Author: Marcell Benjamin – Mutual Fund Sales PT Batavia Prosperindo Aset Manajemen
Disclaimer:
Mutual Fund is a product of the capital market and not a product of PT Bank Central Asia Tbk. (BCA) and BCA are not responsible for any claims and risks related to the management of the Mutual Fund portfolio. Investments in Mutual Funds are not part of third party deposits with BCA so they are not guaranteed by BCA and are not included in the scope of the object of the government guarantee program or deposit insurance. BCA only acts as a selling agent for Mutual Funds. Investment in Mutual Funds contains risks that allow investors to lose part or all of their invested capital. Mutual Fund's past performance is not a guarantee of future performance. Prospective investors are required to read and understand the Mutual Fund prospectus before deciding to invest through the purchase of Mutual Fund participation units.
PT Batavia Prosperindo Aset Manajemen has obtained a license as an investment manager from the Financial Services Authority (OJK) and is supervised by the OJK in carrying out its business activities.