8 Investment Myths And The Facts Behind Them

invest in capital market Existed in Indonesia since before independence. Indonesia Stock Exchange The Jakarta Stock Exchange (formerly the Jakarta Stock Exchange and the Surabaya Stock Exchange) suspended its movement after independence due to unstable social and political conditions. Reopened in 1970

There is a similarity between pre- and post-independence Indonesian capital markets: access is still limited to those with middle to high-end economies.

It is therefore not surprising that when facts about investments and capital markets begin to become public. Many myths were scattered and made people afraid to invest. What are these myths? Check out the following comments:

1. Investment requires high cost.

The first belief is that the investment is costly. the author thinks One myth has no origin. before the development of technology as it is today You can say that investment However, along with the technological developments and innovations carried out by IDX, this myth is no longer relevant.

Please note that prior to 2014, 1 lot of shares would equal 500 shares, meaning you would need at least Rp 4 million to buy BCA shares. However, after 2014, IDX changed 1 lot of shares to equal 100 shares. to make investment more affordable for the lower middle class There is even a discourse that 1 lot equals 1 share.

a lot now Investments that require little capital so that everyone can access

In addition to stocks There are also a number of instruments that can be purchased for as little as Rp 100,000, such as mutual funds, bonds in the secondary market. Equity Equity (EBA) and others

2. Investing is complicated

Again, the existence of financial technology applications has made it easier to invest. Can’t deny that before applying for this You need to go to the nearest bank or securities company office to open a client fund account and buy securities. whether it is stocks or mutual funds when you get there You will need to fill out a lot of documents.

However, investing today is much easier. with the application on your smartphone You can create a client fund account and be ready to buy securities in less than a day, not to mention now. Students can also start investing using their parent-owned NPWP and KTP.

3. Investing is like gambling.

many people Think of stock investing as gambling.that the profit margin is purely based on luck. In fact, these are two completely different things.

One of the main differences between the two is the presence or absence of analytical tools. Gambling, on the one hand, rarely has sufficient analytical tools and is actually based solely on luck. On the other hand, investing has a set of price action (technical) and business quality (basic) analysis that investors need. understand and use if you want to make profit

The second difference between investing and gambling is investing. (except for certain types of transactions) is legal in Indonesia. While gambling regardless of form remains an illegal activity.

4. High-risk investment

Risk and investment are two things that are inseparable. However, the facts about future investments are classified into three levels of risk: low risk. medium risk and high risk Each investment tool carries its own risk.

The investor’s job is to choose an investment tool that fits his risk profile. And try to reduce that risk as little as possible. Because even if it is low, the investment risk cannot be eliminated.

If you don’t want to risk it, choose safe investment assets to reduce the risk of loss

5. Investing is a form of fraud.

The myth of online stock investing circulating in the community is that investing in stocks is like a scam. The authors say this is due to two reasons: a lack of public knowledge about the investment itself, and that many have exploited this lack of knowledge for their personal gain.

The truth is that investing is basically not a form of fraud. as long as there are no transactions indicating the direction of action investment, including fraud If offered by a company that is not registered with OJK, the profits are stable and too fast. and offer a transaction Binary options or binary transactions

6. Investing is difficult to understand.

The sixth investment myth is that investing is hard to understand. This elusive fact about investing is true to some extent.

But in parallel with the development of technology There are now many investment learning resources that you can choose from depending on the learning method you have. Learning resources range from audiovisual content on YouTube to audio podcasts and only visual content on Instagram.

In addition, technological developments have enabled the use of technical indicators and fundamentals. automatically Therefore, investors no longer need to calculate manually.

7. Investments that buy only instruments in the equity market

One misconception that is evolving in the community is that investing is like buying instruments in various equity markets, especially stocks, whereas investing means sacrificing something with the aim of earning a profit in the future.

This means that an investment tool can be anything. From capital market products such as stocks, bonds and mutual funds to real market products such as gold or homes. Even the investment includes spending money on courses. in hopes to increase job opportunities in the future

8. Real estate is the best investment tool.

Many people buy land or houses for investment. The reason is the price of land, houses and apartments. (Especially located in the city center) tends to increase with high demand for human housing. So the profit potential is huge.

However, many people forget that once they have made huge profits. There is also a high risk. These risks include natural disasters, market risks, etc. Not to mention the fact that real estate investments require a large amount of capital and relatively little liquidity. This means you may be selling your home. But in the next few months or years Of course, for those who want to invest This capital and liquidity deserve careful consideration.

There is no smoke without fire. There is no myth without cause. However, together with the development of the investment and technology industry in Indonesia, The reasons for these myths are often irrelevant. And legends will become legends if there is no evidence to suggest otherwise.