Investment Credit: How to Start Investing, Understand the Types, and Choose the Right Strategy

For many years, investing was seen as something only achievable for older or financially established individuals.
Today, anyone can start investing, regardless of age, thanks to the wide variety of investment products available.

You can invest for the long term, in many different forms, even while you’re still young.

What Is Investment?

Investment refers to the activity of allocating money or valuable assets to an institution, an object, or another party with the expectation of generating profit.

The word invest comes from the Italian term “investire,” meaning “to use”, which reflects the idea of placing funds or assets under someone else’s management. When the investment grows and generates profit, these returns are shared with investors based on pre-agreed terms.

Investment in Economic Terms

Economically, investment means purchasing something not for immediate use, but to be stored over time until its value increases.

However, investments do not always guarantee profit; they often come with high risks. That’s why understanding the types of investments is important before you get started.

Purpose of Investment

Investing is expected to provide profit, but the objectives go beyond that. The main goals of investment include:

• Generating passive income
• Ensuring a better and more stable future, not just for the present
• Supporting business growth and expansion
• Strengthening business security or supply chains
• Managing funds for special purposes, such as expansion or social missions
• Reducing the impact of long-term inflation
• Maintaining relationships between companies
• Participating in national economic development

Forms of Investment

Investments are classified into two main forms:

1. Real Assets (Aktiva Riil)

Investments in assets that may be tangible or intangible, such as:

• Gold
• Precious metals
• Property
• Land

2. Financial Assets (Aktiva Finansial)

Investments in financial instruments such as:

• Stocks
• Deposits
• Bonds

Types of Investments

The investment world today offers many options, including:

• Property investment
• Gold
• Mutual funds
• Stocks
• Foreign exchange
• Cryptocurrency
• Bonds
• Sharia investments
• Deposits
• And more

Types of Investment Based on Duration

There are two main categories:

1. Short-Term Investments

Provide returns in less than 3 years. Returns are usually smaller but ideal for near-term goals.

Examples:

• Short-term bonds
• Certificates of deposit
• Stock market investments

2. Long-Term Investments

Require more than 3 years and offer higher returns.

You can enjoy the results in:

• 5 years
• 10 years
• Even decades later

Long-term investments are perfect for:

• Education funds
• Retirement planning
• Saving for marriage
• Long-term wealth accumulation

Returns are significantly higher compared to short-term investments.

How to Start Investing Correctly

Previously, investing involved complicated administrative processes. Today, investments can be made easily and affordably, even from a smartphone.

For example, platforms like Tokopedia allow you to invest in gold or mutual funds, starting from as low as Rp 500.

What Is Investment Credit?

Investment credit is a type of loan or financing provided by banks for business purposes.

The funds can be used for:

• Business expansion
• Purchasing land
• Opening a factory
• Buying machinery
• Increasing production capacity

Once the loan is approved, the borrower must follow the agreed loan tenure and repayment terms.

Characteristics of Investment Credit

• Aligned with government programs to stimulate business activities and create job opportunities
• Helps businesses meet capital expenditure needs, supervised by the central bank
• Considered productive credit, as it is used to improve or expand capital goods

How to Repay Investment Credit

There are several repayment methods:

1. Term Loan

Credit facility repaid in installments over time.

2. Term Loan Grace Period (TLG)

Borrower pays interest only during the grace period; the principal is paid after the period ends.

3. Term Loan Principal (TLP)

Fixed monthly installments for the principal, while interest is calculated based on the outstanding balance.

Investing is easier than ever, but before getting started, you must understand the concepts, types, and risks involved.
Whether you choose short-term, long-term, or investment credit, proper knowledge will help you maximize profit and minimize risk.

With the right strategy, investment can secure not just your finances today, but your future stability and long-term wealth.

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