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If already established with your financial goals, it’s time to start investing. The main principle of investing is to equip themselves with information as possible so you do not get lost or even feel stuck with a choice of investment instruments. When selecting mutual funds, the following stages:

1. Find information and select investment managers
Investment managers (MI) is an institution that manage, analyze, and make decisions on the investment you put in through mutual funds. While other institutions that manage mutual funds are the custodian bank that functions more as a store of funds.

Before choosing a MI should collect more information. Then select that if convenient and easy for you. There is a MI who sell mutual fund products directly. There is also a selling MI products through an agent (in this case the bank).

Choose the MI that provides comfort and convenience for you. But before the vote, watch the prospectus as well as product performance reports from each MI. You can get information through various media such as newspapers or the official website of the institution.

2. Choosing and buying products
Whatever your choice of investment managers, consult with product details, and how performance. If through an agent (bank), ask the customer service at the bank about a variety of information about mutual fund products.

The following options mutual fund products are:
* Mutual funds protected, the target average investment returns zero percent per year, a period of three years.
* Money market mutual funds, the target average investment return of seven percent per year, a period of less than five years.
* Mutual funds and a mixture of conservative fixed income, the target average investment return of ten percent per year, a period of 5-10 years.
* Mutual funds mixture moderate / aggressive, target average investment return of 15 percent per year, a period of 10-15 years.
* Mutual fund shares, the target average investment return of 25 percent per year, a period of more than 15 years.

3. Creating an investment portfolio
There are three profiles of investors, ie investors conservative, moderate, and
progressive / growth. Based on these three types of investor profiles, you can create an investment portfolio that suits your needs. Of course, it is convenient if you already know as an investor with a clear investment objective from the outset.

Portfolio investment is required to be utilized properly. That is, what percentage of investment funds should be used in the instrument of shares or other instruments. This is of course back to your investing needs and objectives, whether short, medium or long.

The following section will explain further steps to invest in the fund market. The main one is how to select shares to be purchased, and when these shares may be purchased. It will be known based on fundamental analysis and technical analysis of each stock.

Simply put, fundamental analysis is to determine the performance of a company. And based on that you can decide whether the stock is worth buying or not. The better performance of the companies mentioned, the stock’s worth it for their collection. While technical analysis will describe when these shares should be bought and / or when to sell.

In short, invest in capital markets, determine the first basket of shares eligible for purchase. It is based on fundamental analysis. The next step is to select stocks which will be transacted. Of course, if the stock price is quite cheap, that’s when you buy these shares. How concrete steps?

First, prepare a basket of stocks that are ready for your purchase. The trick is simple. Pay attention to analysis of stock market analysts are widely written in various newspapers. Then based on that analysis, you slowly accumulate shares to be included in the list of potential purchases for your stock portfolio. Say, you’ve select the 10 stocks that your opinion is fundamentally the shares are promising. Whether directly be purchased? Obviously not. That is the only candidate shares.

The next step, you must re-examine the existing stocks in any sector? Do not let the 10 stocks that you are the lyrics that are in the same sector. Because, they are competitors, whose performance can collide with each other.

Concretely, you should choose stocks from different sectors. This is called diversification of the sector. For example, there is a stock that moves in the banking / finance, stock in the mining sector, shares in the plantation sector, shares in the property sector, and so forth. Of course, not all sectors will be brilliant. Therefore, macro-economic factors will affect the performance of each sector. Therefore, choose stocks from sectors that are characteristic enough you know personally. This will allow you to digest the fundamental analysis that was prepared by analysts.

Once you decide which sector is your priority, then later you pick up some shares of these sectors. As a beginner, no need to choose a lot of stock. What more if you have limited funds. Simply prepare a 4-5 stock only. For example, from two or three sectors. Thus, you can focus on those stocks.

Alternative
You now have several alternative candidates share. However, if the shares are still cheap enough or is expensive? This is very important, because although you buy good stocks, but if the price was expensive, the potential increase in the price is low. Therefore, you should be able to determine the quality stocks, but the price is still quite cheap.

How to determine a stock is cheap or overpriced? Many concepts regarding this. However, the simplest approach is to calculate the price earnings ratio (PER), or the price of these shares compared with a profit company. Currently, the average PER in the stock market is about 14 X. PER If you want to buy stocks that are still under 14 X, these shares can not be referred to as stocks inexpensive.

In addition, you also need to look at return on equity (ROE), aka capital returns from the company itself. Some believe that the good ROE is twice the level of interest rates. If current interest rates around 7 percent, the company should have ROE above 14 percent. That means, if any shares that its ROE below 14 X and its ROE above 14 percent, the shares are fundamentally quite good.

Second, look at technical analysis of each stock that you have fundamentally selection. This is to provide information, when these stocks start to your collection. How do I look at technical analysis? Many analysts give an idea in the form of graphs, bar charts, and so forth, which will then be imbued by the recommendation of buy, sell, hold, and also a target price of the shares.

There is nothing wrong from such analysis. However, do not also provide assurance that the recommendations of the analysts it would be accurate and in accordance with reality. Why? Because stock prices are not formed from the fundamental aspect, but also from the aspect of market sentiment. Technical Analysis depict the formation of a price associated with market sentiment at that time. For example, when the crisis hit the stock market in 2008, no matter good or bad berfundamental stock, all experienced falling prices. Why is that? Because almost all the investors sell their shares and preferred to hold cash. This was triggered by fears of the impact of the subprime mortgage crisis that hit the United States at that time. That means, the price which is described by the technical analysis is very influenced by psychotherapy or psychological mood of investors, which could change at any time.

However, apart from that, technical analysis can give a buy signal or sell signal from a stock. And the signal that you can consider for when to buy or sell stocks. How simple formula?

As described earlier, many of the concepts that reviews about technical analysis, but the most simple concept is the stock price expected to rise again after hitting the most basic level of prices which had previously formed. To know the basic level, look at the stock price movement over a period of one year or six months. If the price is now below the average price movement, and began to increase, then it could be considered as an indicator to get ready to buy the shares. Good luck.

Many novice investors who feel stuck with their investment choices, and then blame the other party because of his choice to invest. According to financial planners Ligwina Hananto, the most common mistake is to potential investors to choose the product, entered in it, and puzzled by his choice.

Determining the initial goal when investing the same with financial planning (financial planning). Create a financial plan with the couple, who shared duties with a role to monitor whether financial planning is going well. By having good financial planning, it means you have a clear purpose, including for investment.

If you are a mutual fund investment options, financial planning firm and clear in the beginning will be very helpful. Mutual funds are liquid. You can save or withdraw at any time. Well, this convenience can mess up if you are not disciplined investment using funds invested in mutual funds.

It takes discipline to be more wise use of investment funds, in this mutual fund. Return to the original purpose stated in the financial planning will largely determine the success of these investments.

Well, if the financial plan has been clearly established, it will be easier for you to determine the choice of investment products. You will not be difficult when the future will develop an investment portfolio. Is a stage in the investment portfolio (mutual funds) to determine how your investment funds will be used later. This will affect future investment targets, including the results that you’ll enjoy with the right portfolio according to your needs and your abilities.

If you’re still confused how do financial planning, whether short, medium or long term, whichever is most appropriate for you, many sources of knowledge you can use, through a variety of workshops or talk about financial planning, or books.

With this knowledge you do not have to pay for the services of financial planners to control the extent of your investment running well or not. The advantage with using the services of financial planners, you can get a recommendation of investment products including a portfolio based on experience in preparing these financial practitioners.

Whatever your choice, you should first identify the needs, abilities, and your current financial condition, and set a goal before the origin of select investment products.

If you are more adept at managing finances, then the advanced stages that should be done is to invest. You’ll want to set aside for the future of children and families is not it? However, sometimes difficult to chase high prices of goods and services affected by the inflation that is increasing every year.

Investing is a need for the future with a large amount at a later date. Make sure you have first have a savings for investment can run optimally. It is important to recognize the various types of investments of the order of lowest to highest risk. The following types of investments referred to as the ladder of investment:

Reserve fund
More reserve funds to the savings. Make sure you have set up this fund before choosing three kinds of investments based on risk level. Product reserve fund can be a savings, deposits, or gold. The numbers ranging from three times the amount of routine expenses every month.

Low risk investment
These investments include short-term category. Its products, savings deposits, foreign exchange, gold, money market, investment insurance, ORI, mutual funds, or unit-linked.

Medium risk investment
Currency, property, mutual funds, or unit-linked investment options can be medium-risk category.

High risk investments
Stock markets including investment instruments that are at highest risk, in addition to foreign currency or index. Mutual fund or unit-linked form of stock is also very risky.

By identifying investments based on risk, you can more wisely choose the investment. In addition, of course, there are a number of factors that should determine what you invest in the product. Portfolio investment into consideration other factors in choosing the right investments.