The financial system of a country could not stand on its
own but they were inter-related with financial system of other countries
globally. Any occurrence that happened in a financial system in another
country.
To illustrate, downturn of stock market index in a
country could have the risk of down turning index of shares in another country
because investment could be done at home or overseas on trans-regional basis.
Development of stock market index in America or Europe always served as
reference to investors in Asia including Indonesia.
In the event that the stock market in New York (Dow Jones
Industrial Average Index) strengthened, normally the regional stock market
index in Asia also rises, and vice versa. This was known as the sentiment
factor which psychologically influenced investors attitude in their investment
maneuvers.
The above illustration was appropriate to visualize the
present situation in the world. The present economic condition in America and
Europe must be watched on. In doing investments the public needed to observe
the risks which originated not only from the product itself but also from the
external factor.
Within the context of banking, for example, Bank
Indonesia disclosed that any product offered by the bank, including those by
Syariah banking system promised their benefits but also their respective
limitations. Besides benefits, the products also held certain risks.
Therefore customers needed to understand the product’s
characteristics before using them. In short, it was noteworthy that not all of
the products offered by banks were purely banking products. The pure banking
products were: saving account, giro, fixed deposits, credit, and Syariah
financing.
The Reksadana Insurance and Bank assurance were
investment and insurance products released by other financial institutions and
marketed through banks as selling agent. As selling agent, banks were not
responsible for the performance of Reksadana and Bankassurance products.
According to BI, the risk incurred in savings account,
giro and fixed deposits, was when there was problem or difficulty during
drawing or liquidating of funds in the banks where the money was deposited.
The inherent risk in other products like Reksadana, were
things like lowered Net Asset Value (NAB) in share-based Reksadana caused by
lowered portfolio shares price in that Reksadana.
Meanwhile every product incurred external risk from
domestic or external condition or even psychological condition of the people.
The external risk were among others curve line motion of shares index,
curveline of exchange rate value, fluctuation of monetary exchange rate value,
movement of interest rate, financial crisis in another country, public’s
confidence index in financial condition, public’s confidence index in political
stability, and rumors spreading in the market.
For that matter BI advised that before taking any product
offered by bank, it was necessary to know the risk that might occur and know how
to minimize the risk.
The risk appetite of each customer differ from one person
to another. The risk profile of a person would determine the risk tolerance
level of that person.
Generally speaking, the better the comprehension of
someone’s risk profile, the higher the risk profile, the higher the risk
appetite and risk tolerance of that person which would eventually increase
his/her risk mitigation capcity. All in all the performance of his/her
investment would be maximized since the risk was manageable.
As with banking product, the Government had procured
facilities to minimize the risk of savings account, giro, and fixed deposit
Through the Board of Deposit Insurance (LPS).
Among the requirements of LPS: bank interest rate which
was in accordance with the stipulation of LPS. Broadly speaking, investment has
its risks and the following are some tips to be observed by beginners who are
starting to learn to invest.
Firstly, recognize and identify the financial institution
where the money is placed. Never loosely invest money in any financial
institution whose legal status is not clear. Avoid financial institutions whose
reputation is bad or notorious in the eyes of the public. Reference by the mass
media could be used as guideline in choosing a financial institution who is
trustworthy and prospective.
Secondly, know and understand the risk in any financial
product because every type of deposit and investment has their risks never be
easily submissive to any sweet persuasion or high promises which are not
reasonable. It is also necessary to check whether the product being offered is
listed in the Supervisory Board or not. Never be trapped into buying hollow or
blank investment plan.
Thirdly, adjust the type of deposit and investment with
the risk level. If fund owner did not have enough understanding about a certain
product, it is best to invest money in simple products like savings account or
fixed deposit. As soon as the candidate investor has better understanding of
products, it is permissible to invest in stock, bonds or Reksadana insurance.
Fourthly, it must be borne in mind that every type of
deposit and investment which are high-yielding also bear high risk. This is in
accordance with the principle of high risk, high return. In this case investors
are advised not to be careless, greedy and irrational in buying an investment
package. Be rational. Know your own capacity before buying any investment of
high risk. Some types of risks are notable, i.e. market risk, liquidity risk
and default risk.
Fifthly, if knowledge and experience are insufficient,
but investor is highly ambitious to heavily invest, it is advisable to use the
services of a financial consultant body or personal consultant. A security
agency has certified Investment manager (MI) who could be appointed as
investment advisor before actually investing. Big banks employ financial
advisors or financial planners who could assist his customer in buying
investment products, So why not start to invest now?
Business
News - August 3, 2012
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