Jenis-Jenis Instrumen Investasi (Investasi Ada Apa Aja Sih?) | Seri Investasi 101 - Episode 2 Part 1

Summary

In this episode, the speaker delves into the different types of investments available in Indonesia, exploring key concepts such as return, risk, and appropriate investment time horizons. The video explains how investments like savings accounts, fixed deposits, bonds, and mutual funds work, comparing their benefits and risks. The importance of understanding when and why to invest is emphasized, with detailed discussions on various investment instruments and their respective returns. The speaker also highlights the role of investment managers and strategies to select the best investment options based on individual needs.

Takeaways

• 😀 Understand the importance of investment time horizon before choosing the right investment type.
• 😀 It's crucial to know when you will need the money before making any investment decisions to align it with the right financial instrument.
• 😀 Time horizon pyramid is a useful model to categorize investments based on when you plan to use the invested money.
• 😀 Savings accounts in conventional banks offer low or even 0% return, but digital bank accounts might offer higher returns, up to 6%.
• 😀 Digital savings accounts have an advantage by offering higher interest rates and daily compounding, making the returns feel more rewarding.
• 😀 Deposits are similar to savings accounts but with a fixed term, offering higher interest rates in exchange for locking the money for a set period.
• 😀 Banks offering term deposits can lend more money because the money is locked for a longer period, reducing liquidity risk.
• 😀 Deposits have a wider range of interest rates from 0% to 8%, with higher returns often offered by smaller, digital banks.
• 😀 Government bonds (obligasi) are a safer investment compared to corporate bonds, as they carry a lower risk of default, thus offering lower interest rates.
• 😀 Mutual funds (Reksadana) pool money from investors to invest in various financial instruments, offering a range of products with different risk and return profiles.

Q & A

What is the importance of understanding the 'investment time horizon' before making investments?

Understanding the 'investment time horizon' helps investors determine when they will need to use the money they are investing, allowing them to match the right investment instruments to their time frame. This ensures that their investments align with their financial goals, whether short-term or long-term.

What are the main differences between conventional savings accounts and digital bank savings accounts?

Conventional savings accounts offer low interest rates, often close to 0%, while digital banks can offer higher returns, such as 6%. Digital banks may also provide daily interest payouts, making the growth of savings feel more dynamic and engaging for the account holder.

Why are deposit accounts (like time deposits) considered a safer option than regular savings accounts for both banks and investors?

Deposit accounts are considered safer because the money is locked in for a specified period, reducing the bank’s liquidity risk. This allows the bank to lend more money to borrowers and offer higher interest rates compared to regular savings accounts, which can be withdrawn at any time.

How do deposit accounts (time deposits) work and why do they offer higher interest rates compared to regular savings accounts?

In a deposit account, funds are locked in for a fixed period, such as six months or one year. The bank can use this stable pool of funds to lend more freely, which justifies the higher interest rates offered. These deposits have less liquidity risk than regular savings accounts.

What is the role of the LPS (Deposit Insurance Corporation) in Indonesia’s banking system?

The LPS guarantees the return of funds to depositors if a bank fails, ensuring a safety net for depositors. The LPS also sets limits on the interest rates banks can offer to ensure stability in the banking system, and it provides compensation in case of bank insolvency.

What is an 'obligation' (bond), and why do companies or governments issue them?

An obligation, or bond, is a debt instrument issued by a company or government to raise funds. Companies or governments issue bonds when they need capital for expansion, operations, or other financial needs. Investors who purchase bonds receive regular interest payments (coupon payments) and are repaid their principal at maturity.

How does the risk level of bonds impact their interest rates?

The higher the risk of a bond (such as a company bond compared to a government bond), the higher the interest rate offered to compensate investors for the additional risk of default or non-payment. For example, government bonds are typically lower risk, so they offer lower interest rates than corporate bonds.

What are the different types of mutual funds mentioned in the script, and how do they differ from each other?

The main types of mutual funds discussed are money market funds, fixed-income funds, equity funds, and mixed funds. Money market funds invest primarily in short-term, low-risk securities like deposits and short-term bonds. Fixed-income funds focus on bonds or debt instruments. Equity funds invest mainly in stocks, while mixed funds combine both stocks and bonds to offer a diversified investment option.

Why is it challenging for equity mutual funds to consistently outperform market indices, such as the IHSG?

Equity mutual funds often struggle to outperform market indices like the IHSG due to high management fees, known as expense ratios, and the difficulty of consistently selecting stocks that can beat the market. Most fund managers cannot consistently outperform passive index strategies.

How do different risk ratings impact the purchase of bonds and the return on investment?

Bonds with higher risk ratings (such as lower ratings like BB or B) typically offer higher returns to attract investors willing to take on the additional risk of potential default. Conversely, higher-rated bonds (like those rated AA or AAA) are considered safer, but they provide lower returns due to their lower risk of default.