Advantages And Disadvantages Of Long-term Investment

As is known, investments are divided into two types, namely short-term and long-term investments. All investments aim to benefit both large and small scales. Long-term or short-term investments can use asymmetric investing that is widely studied by novice investors to get the maximum profit. However, there are some people who prefer long-term investment because they want to have a comfortable life in retirement. Here are three types of long-term investments that you should know:

1. Mutual funds
This type of investment is quite appropriate for beginners. There are four types of mutual funds to choose from, namely money market funds, fixed income, stocks, and mixed funds. Each has its own level of risk. Usually, the funds collected will be managed by the Investment Manager. The profits and losses will be shared equally for investors.

Strengths: You don’t need a lot of experience because it will be managed by an Investment Manager. Your capital will be invested in various places so that if there is a loss in one place can be helped by profits in another place.

Weaknesses: Because they are not directly managed, many are not satisfied with the results. The benefits obtained are also smaller than stocks.

2. Gold
The high interest in this beautiful precious metal makes gold the most profitable investment. Gold has a value and price that always goes up every year. You should choose gold bars or coins instead of jewelry because you will not be charged with any other unexpected costs.

Strengths: Liquid assets are the easiest to sell and last longer. The price is stable and tends to rise.

Disadvantages: Can not provide regular income. There is also the possibility that the value of gold will go down even if it is small.

3. Property
You could say this type of investment has a great and promising opportunity because land and building prices continue to rise, especially if access and quality facilities. However, you certainly need large funds as capital. You can take advantage of various property purchase programs available at banks.

Pros: The risk is quite small. If you haven’t met the right buyer, you can rent it out for additional income.

Weaknesses: Need a large capital to buy a house or land. Not a liquid asset that can be easily sold when needed.

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