Voice for Business

Archive for the ‘Investment portfolio’ Category

FLOWERS IN BLOOM

Flowering flowers concept is a concept where the interest you earn will be added to Your principal money, so the interest generated in the next year will be even greater. Just like a snowball is rolling over the hills of snow. Further down is greater.

Now we
again use money USD 1 million. When you open deposits worth Rp 1 million with interest rates of 12 percent per year, then the balance of your investment at every end of the year is as follows:

At the end of the first year, your balance is:
Rp 1,000,000 + (USD 1,000,000 x 12 percent) = Rp 1,000,000 + Rp 120,000 = Rp;

At the end of the second year, your balance becomes:
Rp; + (USD; x 12 percent) = Rp Rp +; 134.400 = Rp 1.254.400.

At the end of the third year, your balance becomes:
Rp 1.254.400 + ($ 1.254.400 x 12 percent) = $ 1.254.400 + $ 150.528 = $ 1.404.928.

So on each year, until finally at the end of the year the balance of your investment balance of 10 would be Usd 3.105.848. A lot more than if you use the method simple interest (i.e. only Rp 2.200.000).

When reviewing the types of bonds are commonly issued in Indonesia (the community), then the types of bonds include:

• Convertible Bonds (convertible bonds), ie the holders of the bonds at a predetermined time to redeem its bonds with ordinary shares of the company that publishes, on the basis of the conversion price has been determined previously.
• Top Performance Bond (bearer bonds), ie redemption of bonds payable to bearer bonds.
• Bonds With Profit (Profit Sharing Bonds), namely that in addition to bonds promising a fixed interest rate also offers profit sharing to its holder.
• No Interest Bonds (zero coupon bonds), the type of bonds that pay no interest, but are sold at a discounted price (discount bonds).
• High Risk Bonds (junk bonds), the bonds that have a high risk with very low ratings or no ratings or no investment in investment grade.
• Bonds on Behalf (registered bonds), ie the repayment of bonds payable to the person who is named in the bonds.

If that is formed is then highly recommended bond portfolio investors need to understand the characteristics of investment in these bonds. The simplest to understand the characteristics of these bonds that the investment in obligation always contrary to the interest rate. If the high bank interest rates then the bond prices will be low. And if the price of low interest rates then the bond price will go up (mainly for bonds bearing fixed coupon). For that very encouraged investors to learn the ins and outs of the information needed about the bond, either on its own investments, the potential inherent risks and potential returns. Bonds as an investment vehicle also has its risks. Bond investment risks include the inability of the bond issuer to pay interest coupon, to the inability to pay the principal debt (nominal value of bonds) when the bond matures. However, the risk of the bond if the investor is not as heavy as stock investing where investors become shareholders if the company was bankrupt might not get the rights at all.

If a bond fails to pay at the end of maturity, a bond owner is still likely to earn their money by way of liquidation of the company (the issuer) and then sell the existing assets, with the proceeds paid to the owner of the bond. That same bond holders with the lender, so that the obligations take precedence if the company is experiencing liquidity.

It is this factor that distinguishes between the bondholders to shareholders. Therefore in order to guarantee the minimum conditions will not occur then the company shall issue bonds are required to perform rating first. Options ranking can be done through Outlook or In addition to these risks is also a risk in an investment bond is the interest rate risk. If interest rates offered by fixed, while in the period of the bonds the bank held interest rates rise then, of course, investing in bonds become unattractive. For that in these investments need to be considered what is called the yield to maturity (percentage of profits that would be obtained if the bond is held from the start appeared to maturity). This can be obtained by studying on their own, asked the research company’s securities, or through the internet. In short learn to understand the investment and capital market transactions are now practically be so easy because the source of the information is relatively abundant

Blue chip stock or seed stock is a stock whose management has a good reputation. In addition, in its history, business issuers are able to produce high and consistent income to pay dividends in cash. To achieve this condition it’s blue-chip listed companies are leaders in their industries. Also  established. To easily recognize these blue-chip stock, Indonesia Stock Exchange to form an index consisting of 45 leading shares. Namely the LQ-45 index 45 stocks or illiquid. Every six months the issuer of filling liquid 45 stocks is different.

A stock can be regarded as income stocks that pay dividends when the shares are higher than average dividends paid from previous years. Issuers are able to do so is capable of generating high incomes and by providing regular cash dividend. Issuers such usually prefer to distribute profits as dividends rather than deposited as retained earnings. After that, growth stock or stock that is experiencing growth. Characteristics, stock shares emiten is a leader in its industry and in a row the last few years able to obtain results above average. Stocks usually have a P / E ratios higher. In addition, issuers of these shares usually have a high reputation, and style of publicity seemed glamorous in repairing an increase or decrease in share price. Glamour type of stock allows the issuer to obtain capital gains.

Also of note is a speculative stock or stock speculation. Characteristics of this type is emiten shares can not consistently get the revenue from year to year. Sometimes high sometimes low opinion. However, these issuers have the potential to earn a good income in the future, even though such income can not be realized.

As for issuers who want to buy stock in accordance with movements in the economy could buy shares characteristics are called cyclical stocks or cyclical stocks. Share this type of development follow the movement of macro-economic situation or general business conditions. While opponents of cyclical stocks is the kind of defensive stocks or stocks last. Criteria for this last stock is a stock that is not affected by macro economic conditions and business situations in general. At the time of the recession, stock prices remain high. Because, capable of providing high dividends, as a result of the ability of earning a high emiten in recession conditions. Shares of this type is usually the publisher is engaged in industries whose products consumers really needed a cigarette company for example. After all consumers will be hard to leave those needs

The main formula is to minimize investment risks and optimize profits. Because it is highly recommended in investing investors need to diversify and stock selection. That means investors are not struck with only one type of stock only, but combining different types of stocks along with its characteristics so that the value of the portfolio remains high, and always interesting.

Establish and maintain a portfolio to keep it interesting is the work of investment managers, or the professional in managing a portfolio. Nevertheless it does not mean the average investor is unable to form portfolios. In short have the funds, have the ability and effort in analyzing financial data of listed companies, the economic and technical factors, the investor pun have the opportunity to be able to form a portfolio. In fact it is not possible more experts from the investment managers.

In addition to understanding the economy in general, the economic fundamentals, and technical of the stock, investors may begin to form a stock portfolio by understanding the characteristics of stock. As we know the business sector they work at different companies to each other. There is a business infrastructure, mining, consumption sector, plantation, agriculture, basic chemicals and so forth.

Each business has its own outlook for the industry characteristics. Consumption sector, for example, once the holiday is almost certainly the condition of its stock price will rise. Hence the demand for the products they sell. Similarly, the tourism sector so directly observe the holidays arrive investor companies in this sector, such as travel, air sea and land transport. Share prices on services and transportation sectors are likely to move due to the emergence of new expectations for the company. With the performance of such shares, the general characteristics of our stocks we can for the several groups, groups of blue-chip stocks (stock seed), income stocks, speculative stocks, growth stocks, cyclical stocks.

If the egg is a stock term, share anything decent to buy for an investment portfolio that is formed is always protected from loss? Obviously to answer that question of course is not easy. Determining the stock A share B moves up and down, anyone could not tell if confronted with the market. For instance early last September, when global stock markets fell, the Indonesian Capital Markets also fell. Though obviously a good Indonesian economic fundamentals, earnings issuers also increased. Therefore, in order to avoid the risk that investors can do is to understand the characteristics of stocks that make up its investment portfolio.

For that thing to understand is knowing the type and characteristics of the existing stocks. On the stock market at least the same type and characteristics are divided into several groups, there are stock called seed stock or blue chip stocks, there are defensive stocks and shares some are referred to as speculative stocks, growth stocks and income stockserta cylical stock.

Stocks are categorized as blue-chip stock is a large capitalization stocks (the number of shares). Judging from the industry or services rendered, the shares of this stock into the blue category is a company that> leader in the industry. To know the blue-chip stock is relatively easy, because at the Indonesian Stock Exchange (IDX) investors live viewing only stocks incorporated in the LQ-45 index 45 stocks or illiquid.

With so many kinds of investment products that can fill that portfolio, causing investors need to do a variety of considerations before making any investment. Consideration before investing is all we can say as the process of determining investment decisions.

Talk to an investment decision process, then an investment, decision-making process must be continuous or called with an on going process. Therefore, in this investment decision process there are several steps that must be passed, determine your investment objectives, determining the investment policy and election strategy or investment scenarios.

Stage set investment objectives concerning the investment period (short / long), how the target return will be achieved. While the stage of determining the investment policy is to be taken by investors is to know and understand the risk characteristics (risk profile) each if one wants to take the risk or avoid risk, how much funding will be invested, investors flexibility in time to monitor investments, knowledge will capital markets. After that just make the selection of content and asset portfolios. If your entire portfolio is a stock, then that must be known are the characteristics and types of stocks.

Investing in any form must be filled will be at risk. Risks in investing can be anything, ranging from related products related to market the product. Suppose that when investing in property, then the investor will benefit significantly if the market was booming. But once the market plummeted, investors practically putting their money in investment instruments such as houses, land and other property products certainly losers.

In investing in the stock market too. When the share of oil sector experienced a boom because of rising commodity prices, cash petroleum sector stocks and other commodities increased substitution of oil prices. But once oil prices fall, suddenly torn sector stocks will decline. And the stocks of other sectors which increased for example, the banking sector, infrastructure and manufacturing. So in any investment forms and instruments of the targeted increase of investment and stock price decline is not permanent. It must have ups and downs: sometimes rising, flat and down.

Characteristics of such investment, causing investors must have a lot of investment strategies.
In the investment required to always “manage risk” for the investment is always optimal. And the easiest and most effective way to manage this investment fund is to place not just at one investment instrument, but do spread of investing in several investment products.

Make the distribution of investment strategy at many of these products is called by forming an investment portfolio. The objective of the portfolio is to reduce the investment losses that may arise from an investment vehicle with a closed using gains from other investment vehicle. In other words, if both are to benefit the investor will not suffer losses.

Make the distribution of investment strategy at many of these products is called by forming an investment portfolio. The objective of the portfolio is to reduce the investment losses that may arise from an investment vehicle with a closed using gains from other investment vehicle. In other words, if both are to benefit the investor will not suffer losses.

So the core to reduce or manage investment risk is to build a portfolio of “Do not put all your eggs in one basket” Do not put all eggs in one basket because if the basket falls, the whole egg may break all. So in theory or portfolio investment, investment products should vary so that the risk of loss on one product that will be covered by other investment products.

In general, investment products are grouped into two classes based on the results. First, fixed income investment products (fixed income investment), which is certain investment products that provide income (usually called the flower). Second, investment product growth (growth of investment income), which is an investment product that does not give definite results in the form of interest, but only returns when resold with a higher value. Example: stocks, gold, home, collectibles, foreign currency.

An investment portfolio are all financial assets a person or business invests together. In full view you can think of an investment portfolio is easy to administer but the reality is that it is the most complex work .

I say complex because one with an investment portfolio should fit the profile of each investment and to situations where you are in the market. These tasks are not simple. For these reasons there are people specializing in this field and are dedicated to creating investment portfolios and manage them properly.

Many people often confuse an investment portfolio with the shares of different companies and the reality is that these portfolios include not only investment but also those entering the Forex market or real estate.

To design an investment portfolio the first thing to do is to define what will be our profile as an investor. The first questions we must ask are that and that we will invest our savings or our capital, besides being aware of the risk we run. This profile is the basis of the investment portfolio.

The second step in an investment portfolio is the definition of objectives. When we are sure we run the risk that investment is a priority answer questions like that is what we get, we will do with the profits. So it is good to be sure of what we want to know where to stop or continue.

The next step is the diversification of investments in order to run a lower risk of loss. Because of the diversification is that it manages to get a balance between gains and losses. The main basis of an investment portfolio is to cover the risk of loss of assets with strong conservative assets.

Apart from having a balance in our portfolio, we also handle a tax that coupled with each product and commissions. Recall that an investment portfolio must be constantly updated.

When we make investments in the stock market long term, we must be aware are the most profitable for both the most dangerous for the estate, so we put a lot of care.