Jakarta, CNBC Indonesia – Using holiday allowance (THR) to shop for basic needs or fulfill desires is certainly not wrong. However, it would be better if these funds were also used to develop wealth in the future.
Investing all your THR can be a wise choice if you already meet your daily needs and needs during the holidays with your monthly income.
However, before making this investment, make sure you have strong financial security. This includes having sufficient emergency funds and adequate financial protection.
For those of you who have prepared all these requirements and are ready to use THR as a means to grow your wealth, here are investment instruments that can generate cash or passive income for you.
Deposit
Deposits are one of the simplest financial instruments, and are often the choice of many people for saving.
Bank deposit interest rates will adjust to Bank Indonesia policy regarding interest rates. Meanwhile, the final tax is 20% of the interest.
Even though it is often said to have a low level of return, this instrument is still suitable for short-term savings.
Mutual funds
This investment instrument is the most practical and complete instrument. This is because there are many types of mutual funds that you can choose according to the level of risk and returns.
If you are a conservative investor who tends to avoid risk, money market and fixed income mutual funds are the solution.
Meanwhile, if you want a higher rate of return for long-term investments, then mixed mutual funds, stock indices and shares are suitable for you.
Several mutual funds on the market can actually provide profits in the form of dividends.
However, the form of dividends given is not always in cash, because some are in the form of additional investment units. Most of the mutual funds that generally distribute dividends are fixed income mutual funds.
Bond
If you want passive income that is regularly received every year in an amount larger than deposits, then bonds or debentures are the solution.
If you look at the issuer, there are two types of bonds, namely government bonds and corporate bonds.
State bonds are one of the safest investments in the capital market. This is because the capital and yield coupons you receive will be guaranteed by the state.
Meanwhile, if you want higher returns, corporate bonds are the choice.
Share
Even though they have high risks, shares are instruments that also have high returns. For beginners, it is a good idea to choose shares in large companies that will perform well in the future.
The shares of these giant companies are often referred to as shares bluechip.
Apart from profits in the form of capital gains, stock investors can also gain profits in the form of passive income, namely dividends. Dividends are the result of sharing the net profit that a company gets to its shareholders.
The amount of stock dividends certainly varies greatly, and of course this will depend on the management policies of the company concerned.
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