Being able to become an investor is the dream of some people who do have an interest in the world of investment. Investment is the activity of investing capital in several forms in order to get profits in the future. Because it's not easy to be an investor who can end up reaping success, it feels like you need to understand everything about investors better. This way, you can be more sure if being an investor is one of the ways you can be successful. If you are already interested in the world of investing, it's a good idea to read reviews about investors thoroughly. Here is complete information about what an investor is and how to become an investor. 

Definition of Investor in General

What is an investor? In short, everyone can say that an investor is a person who invests capital into financial plans with the aim of making a profit. It can be said that investors are investors who put their money into it to get a certain level of profit. If they become an investor in a company, they will get shares of the company where they invest their capital. Several experts also expressed their views on what stock investors are, what they usually do, and their goals for doing so. Here is the definition of investors according to experts. 
  1. Nasarudin & Surya (2004) said that investors are individuals and institutions that can come from within and outside the country who carry out investment activities in a long and short period of time.
  2. Kasmir & Jakfar (2012) also have their own meaning investors. According to them, investors are shareholders or investors who invest in a relatively long period in various fields of business. In other words, the investment made is not in the scope of a small business but a large business. This investment can also be in the form of physical or non-physical projects. Examples of investors in this case can be investors for building construction, research projects, bridge construction, or road development.
  3. Sadono Sukirno (2008) stated that an investor is a person who invests, expenses, or spends on a company to increase the company's capabilities or production level. Thus, the company is able to produce goods and services whose needs are increasing.
Although some of the figures above convey different interpretations or understandings of investors, in general they have the same intention. They think that investors are people who invest or invest to be able to make profits over a long period of time. Unfortunately, an investor will be different from another investor. Even though it carries the title 'investor', it turns out that not all investors are the same. It's the same with angel investors. An angel investor is an individual who has unlimited wealth that is voluntarily given to a startup company.  Usually, angel investors are friends, family, or closest friends who really want to help your company. They will provide one-time capital assistance and usually only during the difficult times that you are going through. There is also a grouping of various investors, as below. 

Types of Investors Based on the Amount and Risk Taken

Being an investor in fact also has to deal with the risk of either losing all his money, experiencing big losses, or experiencing double profits. Just like an idiom that reads high risk, high return, if you dare to take a high risk, you can get a high return or return as well.  Unfortunately, not everyone dares to take a big step in investing large amounts considering the investor's task requires effort, experience, and also precision. To distinguish the type of investor, the term investor itself is divided into 3 types based on the amount and risk of the investment taken.

1. Conservative type (Risk Averse) 

This type of investor is the type of investor with the lowest risk profile in order to be able to avoid the risk of a decrease in the value of the main investment. Conservative investors are usually investors who are just interested in entering the world of investment. Being a conservative type of investor means that you only invest a small amount of capital. In addition, this type of investor chooses safe investment instruments even though the return is not too large.  Although the value of the return is not too large, investors can get stable profits. How to get around it? By being a long-term investor to be able to achieve a large amount that this type of investor can do to be able to achieve what he wants.  Usually, this conservative type of investor chooses several investment instruments such as deposits, gold, and money market mutual funds. Money market mutual funds are very suitable for the characteristics of conservative type investors because the risk owned by money market mutual funds is very low. In addition, you can also invest in the short term and you don't have to worry about changing price conditions in the capital market. 

2. Moderate type (Medium)

The second type of investor based on the amount and risk taken is a moderate-type or medium-type investor. As the name implies, this type of investor is in the medium or intermediate level.  This means that this type of investor is willing to accept the risk of short-term losses and he has also targeted to reap profits higher than the inflation rate or deposit interest.  These investors usually plan for financial goals in the medium term even though they are not too brave to take risks. Examples of investments that are suitable for moderate investors are fixed income mutual funds and also mixed mutual funds. 

3. Aggressive type (Risk Taker) 

The last is the type of investor who has a very high risk profile, namely the aggressive type. Aggressive investors are investors of stocks or capital who are aggressive in carrying out their activities. They are usually people who are already experienced in their field. They know very well what risks they will face and they dare to take those risks.  This type of investor is used to facing the volatile ups and downs of capital market prices even into the most extreme stages. Even though they already know the high risk in front of their eyes, they are not afraid to put capital in a high amount of investment instruments. Some examples of investment for aggressive investors are stock trading, forex, stock mutual funds, and property.  For you who are an aggressive investor or risk maker, GIC is the right place to invest, with a minimum deposit of IDR 2,000,000, you can already trade with a daily profit of IDR 100,000! Only at GIC, you can also become a market maker with a deposit of IDR 75,000,000.
 Deposit Cashback 100%

Investor Characteristics

In pursuing the world of investment, everyone will definitely hope to be able to become a successful investor who can reap many profits. Arguably, not everyone who is able to invest an infinite amount of capital is worthy of becoming an investor if they do not have the characteristics of an investor. Here are the characteristics of investors that you need to know more about.

1. Can think rationally

Becoming a stock investor is a hope for almost everyone. Unfortunately, to become an investor requires a character where he can think rationally. When facing problems or losses from the invested capital, they must still be able to think rationally and not be rash in taking the next step. This is because when you take the wrong step just because of momentary emotions or rush, you will add to your losses. Therefore, the main character of an investor is to be able to avoid aggressive actions and start developing positive traits. When faced with problems, an investor must be able to think wisely to be able to make decisions that even if they cannot cover all losses, they can at least reduce the amount of your huge losses.

2. Goal-focused

To keep the value of your investment successful, you need a long-term perspective. This does not only refer to short-term profits but you should focus on your long-term goals. For example, you should prepare your child's education fund, funds to buy a house, retirement funds, and other expenses that will arise in the next few years. Sometimes when facing exams, many people often let their guard down and forget about their main goal of investing. As a result, they actually lose the advantage that they can use in the future. Focusing on goals can also be interpreted by determining products that are in accordance with the goals. For example, when you decide to make short-term investments ranging from 6 months to 2 years, of course investing in stocks is not appropriate.

3. Have confidence

Many people don't want to go into the world of investment because maybe they think that it is not in accordance with the field of interest. They need to learn new things and there is no guaranteed success. This type of thinking is what prevents a person from daring to taste the world of investment. In fact, in any business activity, failure and success always go hand in hand. One way to become an investor is to have a sense of confidence, be willing to learn new things, and learn from mistakes. Thus, you will be able to pursue the world of investment and deserve to be a reliable investor.

The Difference Between Institutional Investors and Individual Investors

Previously, we have discussed the existence of three types of investors based on the number and risks they take. It turns out that there is also a grouping of investors or investors, namely institutional investors and also retail investors. What is the difference between these two types of investors? Institutional investors are non-bank people or organizations that invest or invest in stocks or other investment instruments in large amounts. It is not uncommon for institutional investors to collect money from several small investors and accumulate it to be able to take investments with a much larger nominal amount. Because it consists of an accumulation of investors or small investors, these institutional investors have a much stronger and greater impact and influence than individual or individual investors. Examples of investment options that are suitable for institutional investors are pension funds, mutual funds, and also hedge funds. In contrast, retail investors are individuals who use their own name or trust to represent the individual in investing. There are also those who interpret a retail investor as an individual who trades stocks or bonds through their own accounts of securities companies. Sometimes people have already given negative labels to retail investors. Apart from the people behind it who lack knowledge, they usually lack research, lack experience, and also carry out investment activities that are not neat or messy. In fact, many retail investors can imitate the professional side of institutional investors. 

How Investors Work

When some people hear the word investor, they may just think that they are only investing capital and making profits like saving money in the bank. In reality, an investment cannot 100% promise investor profits because there are risks, timeframes, capital, preferences for the amount of funds you want to invest. Being an investor means that you have to be very careful in choosing the right investments you should choose. In addition, whether their investment options are suitable for the long term or the short term.

Development of Indonesian Investors

Due to the pandemic that has not ended until now, many people have begun to switch to the world of investment. By pursuing investments even in small amounts, they can obtain future guarantees in uncertain conditions. In Indonesia, in the first quarter of 2021, the number of investors increased by 4.3% compared to previous years. The value of investment itself in the housing sector and the office industry is 29.4 trillion, transportation and telecommunications is 27.9 trillion. For the metal industry, basics, metal goods, machinery and equipment worth 25.6 trillion. For the food industry, it is only 21.8 trillion while for electricity, gas, and water it is 20.2 trillion. Singapore is the country that provides the largest direct investment this year. Overall, the value of investment provided from Singapore reached US$ 2.6 billion.

Then, what are the benefits of being an investor?

Becoming a domestic investor or foreign investor certainly requires a large amount of money. Because they are investors who buy stocks, assets, property, or other types of assets, of course there are a myriad of benefits that can be obtained by becoming an investor.
  1. An investor will be able to better prepare for an unplanned increase in the cost of living. With the various advantages that an investor gets, you can plan for your future, your retirement time, and even the assets that you can live in or sell at the right time.
  2. By choosing to go into the world of investing, you can make money that works for you and make more money. We can take the example of Buffet which only needs USD 40 or the equivalent of Rp532,000 at the exchange rate per USD of Rp13,300. Investment continues to grow and in 2015, the investment value has skyrocketed to USD 5 million or equivalent to Rp66.5 billion. He succeeded in proving that it was money that worked for him and not the other way around.
  3. Being an investor will certainly provide benefits on stock ownership. Because the investor's function is as an investor, surely the company will give a share according to the amount of capital given. For a certain period of time, this capital can have the possibility to increase and provide profits that can be used for business expansion and increase other profits.

Conclusion

An investor is a person or an organization that provides investment or investment in assets, bonds, property, or various other types of investments. Apart from the various tasks and benefits of being a daily investor, they also have to deal with the amount and risks they have to face. Not only that, but it also takes several characteristics to be able to become a decent investor.