INVESTMENTS

DEFINITION OF INVESTMENT
Investment is the commitment of a number of funds or other resources do at this point, with the aim
of obtaining a number of advantages in the future.
Example:
1. Investing in stocks to profit from rising stock prices or pay dividends.
2. When you sacrifice to learn.

INVESTING ACTIVITIES
Investment activities can be done in a number of assets such as:
1. the real assets (land, gold, machinery, or buildings).
2. Financial assets (deposits, stocks, bonds, options, warrants, or futures).
Financial assets are in the form of securities claims on a number of assets issuer of such securities.

DEFINITION AND TYPES OF INVESTORS
The parties who perform investment activities are called investors.
Investors can generally be classified into two, namely:
1. Individual Investors (retail investors)
individual investors comprised of individuals who perform investment activities.
2. Institutional investors
institutional investors typically consists of insurance companies, fund depositary institutions
(banks and savings and loan institutions), pension funds, and investment companies.

RELATIONSHIP BETWEEN THE INVESTMENT AND CONSUMPTION

Welfare indicated by the sum of monetary income current and the current value (present
value) of income in the future.

People should make a decision as to how much current income that should be spent or
consumed and how much should be invested according to his preference.

INVESTMENT OBJECTIVE
1.
2.
3.
4.

To get a better life in the future.
Reducing inflation.
The urge to save on taxes.
Etc.

Return Return to expect investors from its investments is compensation for the opportunity cost (opportunity cost) and the risk of declining purchasing power due to the effects of inflation. it is necessary to distinguish between the expected return (expected return) and return that happens (Realized return). This means that the greater the expected return. The expected minimum return is often also referred to as the required return (required rate of return). INVESTMENT PROCESS Investment process shows how should an investor making an investment decision on the effects that can be marketed to the necessary stages as follows: 1. Determining the Investment Objective there are three things that need to be considered in this stage are:  The expected rate of return (expected rate of return)  The level of risk (rate of risk)  supplies the amount of funds that will be in investasiikan i: interest in the bank E: expected i <E = capital market i> E = Deposits . Expected return (expected return) is an anticipated rate of return investors in the future. The basic thing in the investment decision process is understanding the relationship between expected return and risk of an investment. While the return is happening (Realized return) or actual return is the rate of return that has been obtained by investors in the past. The relationship of risk and expected return of an investment is a direct and linear relationship. BASIC INVESTMENT DECISION 1. Specifically. In the context of investment management. 2.INVESTMENT PROCESS Investment process includes understanding the basics of investment decisions and how to organize activities in the investment decision process. referring to the possibility of the realization of the actual return is lower than the expected minimum return. the greater the level of risk that must be considered. Risk Risk can be defined as the possibility of actual returns that are different from the expected return.

identification of the effects of which will be selected and what proportion of the funds will be invested in each of these securities. Fundamental Approach This approach is based on the information published by the issuer or by an administrator exchanges. then to estimate the prospects of its stock price in the future insolence in associate with faktor2x fundamentals that influence. further to the industrial sector. B. is finally done and the performance evaluation of its shares in issue (Him). effects in order to select the portfolio formation is the effect of having the effect of a negative correlation coefficient (having opposite relationship). This is done because it can lower the risk (do not let the eggs in one bed) Evaluating Portfolio Performance . how shares this analysis does not assume that the fundamental analysis is too complicated and too much based on the issuer's financial statements. Analysis In this stage investors conducted an analysis of the effects / group effect. One purpose of this option is to identify the same effect (miss priced) if the price is too high / too low For that there are two approaches that can be used: A. This analysis is easier and faster in comparison to the fundamental analysis. And they tried to tend to ignore the risk and profit growth in the barometer shows of supply and demand. 3. So this analysis at the start of a cycle of corporations in general. Technical Approach This approach is based on the data (change) stock price in the future and this analysis is the analysis estimates that the shift of supply (supply) and demand (demand) in the short term. Because the performance of listed companies is influenced by the industrial sector where the damage is in the Macro economy. FORMING PORTFOLIO In this stage.2.