Suara.com – Of the many investment instruments that exist today, bonds or debentures are still one of the favorites for many people. This instrument has various advantages and has quite a large profit potential. Flexible to use as a short-term or long-term investment instrument.
If you are interested in investing in this instrument, then it is very important to understand more about it. Let’s get to know what it is bond and what are the benefits. Apart from that, you also need to recognize what this debt securities investment simulation looks like so that it can generate profit.
What Are Bonds?
Each type of investment instrument has its own characteristics, as well as debentures. This is a form of investment instrument that comes in the form of bonds from both the government and companies or corporations.
These debt securities are proof that the government or company borrows funds from investors for a certain period of time. It also includes a time limit in which the company or government will return the funds. More than that, these bonds can also be traded so that investors do not have to keep them until the validity period of the bonds expires.
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Judging from the level of risk, debt securities have a relatively low risk. Many novice investors and conservative investors choose to invest in this instrument. Even though the risk of default and other risks is always there, especially if investors are in a hurry to take steps.
If you already know what bonds are, you can start considering this investment instrument. Especially if you have made previous investments and want to diversify. Of course debt securities can be the right and profitable choice.
Why is this bond investment worth considering? Of course there are many factors that make debentures a reliable investment instrument. Here are some of the advantages of investing in debt securities that are important for you to understand:
1. Has Low Risk
Debentures are a type of investment instrument with relatively low risk. When compared to other investment instruments, debt securities can be said to be the safest. That’s why many people are interested in investing their money here.
Moreover, for this type of investment bonds issued by the government. There is a law that regulates and guarantees payment transactions, namely Law no. 24 of 2002. There are legal guarantees so you can be more calm when investing in debentures.
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What about corporate bonds? Stay safe as long as you are more thorough and careful before making a purchase transaction. Make sure the corporate bonds are truly reliable and trustworthy. Pay close attention to what the company’s background is like and what its financial records are.
Even though the risk is relatively low, all investors who invest in this instrument must still be careful. Especially if you want to make a sale and purchase so you can get cual from capital gains. Make sure not to rush into making decisions and not be easily tempted by offers that are considered profitable.
2. There are Fixed Profits from Coupons
It should be noted that debt securities do not only promise a return of capital funds after the expiry date. More than that, investors will also get fixed benefits from coupons or interest. As long as they are still holders of debt securities, investors are entitled to get coupons which are given periodically.
The coupon has a certain value according to the policy of the debt security issuer. It can be said that the coupon will later become one of the sources of profit from this investment. In addition, the benefits of coupons will also be a source of passive income for investors.
The longer the time the bonds are held, the higher the interest rate offer from the coupon. It’s better to first calculate the value of this coupon before you buy certain debt securities when investing.
Apart from wanting to achieve certain financial goals, one of the reasons people invest is to get passive income. This passive income can even be a source of income after you retire. So it’s no wonder that many investors choose debt securities, especially those with long-term financial goals.
3. Can be traded
In the explanation of what bonds are, it has been stated that these investment instruments can be traded. Apart from getting regular profits from coupons or interest on debentures, you can also receive cash from capital gains. If you sell at the right time, then you can benefit from the difference in the purchase value of the bonds.
Even so, it should be noted that buying and selling debt securities cannot be done carelessly. Especially if you want to get cuan or profit from the sale of bonds earlier. Pay close attention to the current interest rate and make sure you can benefit from the selling move.
Buying and selling debt securities is actually very flexible. You can sell the bonds you own at any time as long as the time is right and you can make a profit. So you don’t need to hold or save the debt certificate until the validity period expires because it can be released at any time.
4. Greater Interest than Deposits
One source of profit from investing in debt securities is interest or coupons. Interestingly, the value of interest from debt securities is calculated to be far greater than interest from deposits. If you compare these two forms of investment, of course, investing in debt securities is far more profitable.
It is undeniable that interest rates are the main reason people invest. That is why as much as possible investors will look for instruments with the biggest interest offers. As long as you can get optimal benefits from interest, then you shouldn’t just pass it up.
In addition to offering greater interest compared to deposits, the total cash earned can also be more. When you invest through deposits, there is no fixed income that can be received. Meanwhile, investment in debt securities provides passive income from coupon interest which is received periodically by investors.
More than that, currently the tax value for deposits is also greater than debt securities. This can have a big influence on the total profit that can be obtained. So it is understandable if nowadays more and more people are transferring their assets from deposits to debt securities investment instruments.
5. Suitable for Long Term Investment
Investments in the form of debt securities are very suitable for long-term storage. This instrument is a safe and profitable long-term investment option. If you have long-term financial goals, try to consider investing through debentures.
When you use debt instruments for long-term investments, you can get more coupon interest. The value of passive income earned can be greater. However, it doesn’t matter if you want to use this instrument for short-term investments because debt securities are fairly flexible.
You can keep debt securities until the expiration date expires. If you don’t want to keep it that long, then you can immediately sell it at the right time to make money. If the validity period has expired and you still want to keep the debentures, you can extend it.
There are many debt securities products offered to investors today. If you want to invest in this instrument, you should be more careful and careful in choosing. It is also important for you to make investment simulations so you can know how much profit you can get and what the potential risks are.
Usually investment applications already have simulation facilities that make it easier for you to see what the cash calculation will be like later. Through this simulation you can find out whether the instrument is reliable or not. Let’s take the example of investing in Retail Government Bonds or ORI series ORI020.
As an illustration, for example the Director General of Financing and Risk Management at the Ministry of Finance stipulates that the coupon for ORI020 is 4.95% per year. Then the bond coupon tax is deducted by 10% so that investors can still get a net return of 4.455%.
Let’s make a calculation, if you invest as much as IDR 1 million to buy ORI020. From the investment value, you will get a gross coupon of IDR 4,125 per month. If you have already deducted taxes, the net coupons you can receive are approximately IDR 3,713 per month.
If you invest IDR 100 million in the ORI020 instrument, then the gross income is IDR 412,500 per month. After the tax is deducted, it will be IDR 371,250 per month. The more value you invest, the greater the income or profit that can be received.
You can also get bigger cuan by buying and selling debt securities. If you don’t want to keep the notes and rely solely on coupon interest, then you can make a sale and purchase. Of course the value of capital gains that can be obtained varies greatly depending on what the buying price and selling price you get.
This calculation may differ depending on the interest rate and the offer made by the issuer of the bonds. So please do the calculations with the latest information or offer value before making a purchase transaction.
Start Investing in Bonds to Get More Cash
Investing in the form of debt instruments can be the right choice for you. Choose to invest together digibank by DBS that are guaranteed to be safe and can optimize profits. Here are some of the advantages that you can enjoy:
* There are lots of product choices in the primary market and secondary market.
* Affordable investment capital, starting from IDR 1 million.
* Transactions are much easier because you can use a smartphone application.
After understanding what bonds are and what investment simulations are like, then you can be better prepared to gain a lot of profit. Especially if you choose to invest with digibank by DBS, which offers various advantages. Investing is easier, safer, and of course provides potential cash.
Through bond investment, you can achieve short-term and long-term financial goals. The earlier you start, the faster your financial goals can be met.
Please click here to get more complete information about investing with digibank by DBS.
Source: Suara.com – Berita Terbaru Bisnis, Ekonomi, Investasi Indonesia by www.suara.com.
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