The foremost question that investment beginners would likely to ask is: which one is the best investment for me? HighEnd discussed the matter with Budiman Tanjung, Senior Executive President of CIMB Niaga, who is also the Head of Retail Banking Product and Directorate Consumer Banking.

Investing in stocks and bonds, as well as in mutual funds or even bank deposits, is considered as the fundamental and conservative way to ‘secure’ the financial income for the future. It is only a matter of understanding how and where to invest the hard-earned money that will differentiate either successful outcome or loss.

Mr. Budiman Tanjung

 “Almost all of the people intending to invest want the ones with the lowest risk and the highest interest, of course. But actually, the most prominent step to begin the investment is to analyze a person’s risk profile. There are five risk profile categories: aggressive, growth, moderate, balance and conservative, which will determine the risk level of products. As important as the risk profile is a person’s purpose and intention to invest,” BudimanTanjung answered.

Return-Risk Chart

In conclusion: the larger the return; the higher the risk. However, there are reasonable ways to minimize the risk: by a proper diversification portfolio management. “Other than having a well-built investment diversification portfolio, my advice is, to allocate a steady financial flow into the investment, each and every month,” Budiman Tanjung added his advice in the effort to minimize investing risks.

PHOTO Rudi Sulistya