What Must be Prepared When The Financial Crisis Hit

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The question which then arises is: “if there’s no safe place to invest “. “Are my funds should not be stored at home alone?”. Saving money at home are also at risk. The risk of being stolen by someone’s house, is stolen the thief can cause the money we save at home is reduced or lost.

If saving money at home or in the form of savings dibank contain the risk, let alone the name investing. One thing we must always iingat is that no single investment that does not have 100% risk. Due to this risk, therefore we have to do an analysis before investing in order to minimize this risk (not eliminate).

Moreover, if we invest in the stock market in financial products such as stocks, bonds and derivatives such as mutual funds. In times like now where stock prices were falling, to be sure our investments will go down. Then How can we minimize that risk? Many ways you can do. The first should always be remembered that investment risk is always proportional to their investment.

That is, the higher the interest rate or the expected results, the higher the risk. As for now there are several investment products that can provide a competitive return on investment (not high) but with a risk controlled (managed). However, there are many investors in Indonesia alone who are not using common sense, want to quickly get rich quick by investing in products that promise or the lure of high yields.

One theory is often used to minimize risk is called diversification. Know the term “Do not Put Eggs in One Basket” donk? Or if you mean about is if we have many eggs do not put all eggs in one basket. So if the basket falls, the eggs will break all. Well, it applies also to our investments. To minimize the risk of not putting our investments just to one product only.

Investments can be done using investment products offered by financial institutions or financial products or using non-financial products as well. Using a combination of these products also help reduce the risk.

Examples of some non-financial products that can be used to invest is: Property (house, apartment, shop, kiosk, etc.), Motor Vehicles, Gold / Precious Metals (jewelry and gold pieces / bars), diamonds and precious jewelry. In addition to some specific groups using paintings, antiques, and many other products that can be used as a vehicle of their investment.

In a certain scale, diversification is not only done by using investment products in Indonesia but can also use the product or investment in some countries. But we also have to be careful, in conditions which are highly developed with a network of integrated information and exchanges around the world.


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