If our parents often advise them to be diligent in saving, what exactly is the function of savings? When we are small, the savings we collect will be able to be used to buy things we want or for the future such as education. But will the current value of $ 100 be the same in the next 5 to 10 years? How many items can be bought at $ 100 right now in the next 5 years? Same, more or less? It all depends on the country’s inflation conditions. This makes it time to study investment because the rate of increase in interest or the value of money invested will be proportional to the rate of inflation or is likely to be greater, making it perfect for future guarantees. One type of investment that is mostly done is investing in gold IRA companies.
Investments that have low risk and certainly make a profit are gold investments. Given the value of gold always increases in price from year to year. Gold investment can be done by buying precious metals and then storing them in the long run for profit or by saving gold that has been facilitated by the state a lot. The return on gold investment is estimated at 8% per year, a considerable value compared to saving money in savings at a bank.
Mutual Fund Investment
There are several types of mutual funds, including money market funds, fixed-income funds, mixed funds, and equity funds. In order to start investing in mutual funds, investors must find an investment manager who has a good credibility and can be entrusted with managing our funds in a variety of mutual fund products. A trusted investment manager is a management company overseen by the Financial Conduct Authority.
From now on when you hear the word stock, stop thinking or use the term ‘play/play shares’, but always use the term ‘Stock Investment’. Because investing in stocks is not a game. Every stock investment activity has a knowledge base that must be mastered well and requires expertise that cannot be underestimated.
Both mutual funds and shares are investments in the capital market but the difference is that, in mutual funds, funds are managed by investment managers while funds are managed directly by investors. A capital market is a market place for buying and selling shares like malls in the physical market. Securities companies are in the capital markets such as shops in malls, then stocks are products sold by securities companies such as clothes in stores with investors as buyers.