INVESTMENT OPPORTUNITIES DURING COVID-19 OUTBREAK
Investment is one way to securing your assets that oriented toward future returns, and thus entails some degree of risk. But because of the current pandemic that happened in all around the world, according to the data, this pandemic forced thousands of businesses to shut down for a while to prevent the virus to spreads more. Therefore, it has created horrific damage to the world market, including Indonesia’s. Indonesia Director of Center for Macroeconomic Policy, Fiscal Policy Agency, Hidayat Amir, estimated Indonesia has lost almost 316 trillion rupiahs this past three months. It calculated based on economic growth in normal situations around 5%. While the realization, Indonesia’s economic growth in the first quarter of 2020 was only 2.97% of the Gross Domestic Product (GDP).
Because of there was a damage to the world market, the investors have to make a good strategy to where they are going to invest their money. According to the article “3 Stocks That Will Benefit from the Coronavirus Pandemic”, Yang (2020) suggested invest to three companies that thriving in the market during pandemic which is Kimberly-Clark (NYSE: KMB) brand provides personal care, Zoom Video Communications (NASDAQ: ZM), and Clorox (NYSE: CLX) provides bleach and other cleaning supplies.
But stock market is not the only option that we have if we want to investing. These are the 4 Types of Investment that are well-suited during COVID-19 Pandemic;
- Government’s Securities
Government’s securities or obligations are investment instruments issued by the government to public. In Indonesia, bonds that are considered effective during the corona outbreak are SBR (Savings Bond Ritel), ORI (Obligasi Ritel Indonesia), and SR (Sukuk Ritel). This kind of investment suitable for beginners who only has a little amount of money and do not like to take risks. Because this investment is guaranteed by the country so we do not have to worry about loss, such as default. This year, the Indonesia’s government plans to issue six Securities which are;
- SBR009 – January 27th until February 13th
- SR-012 – February 24th until March 19th
- SBR010 – June 23rd until July 9th
- ST007 – August 28th until September 23rd
- ORI017 – October 1st until October 22nd
- ST008 – October 26th until November 12nd
- Precious Metal Trading
During pandemic, invest in jewelry, or fine gold can be the best alternative. Because the risk is fairly small, while the profits are quite large, and the procedure is not too difficult, just implement a trading system. Buy when you have enough money, then sell when you need it or when the price is higher.
- Properties
An investment property is not solely intended to be directly used as private residence but also with the intention of earning a return through rental income, the future value of the property, or both. The purchases method now is easier than before with applying for mortgage (KPR). Because property is non liquidity instruments, makes this kind of investment suitable to be chosen when you are in the midst of economic instability like now.
- Money Market Fund
Since early 2020, Infovesta noted that the majority of domestic mutual fund performance was negative especially for Equity mutual funds and mixed mutual funds. However, the performance of money market mutual funds tends to be positive and relatively stable since the beginning of 2020. Therefore, investing in money market funds can be a promising choice.
REFERENCES:
Alika, R. (2020, Juni 3). Tiga Bulan Pandemi, Kemenkeu Taksir Kerugian Ekonomi RI Rp 316 Triliun. (Ekarina, Editor) Retrieved from Katadata: https://katadata.co.id/berita/2020/06/03/tiga-bulan-pandemi-kemenkeu-taksir-kerugian-ekonomi-ri-rp-316-triliun
Aristanti, N. D. (2020). Inilah 4 Jenis Investasi yang Tepat di Tengah Pandemi COVID-19! Retrieved from Koinworks.com: https://koinworks.com/blog/jenis-investasi-saat-corona/
Mola, T. (2020, Mei 11). Ini Produk Investasi Terbaik di Masa Pandemi Covid-19. Retrieved from Bisnis.com: https://market.bisnis.com/read/20200511/189/1239072/ini-produk-investasi-terbaik-di-masa-pandemi-covid-19
Tashanova, D., Sekerbay, A., Chen, D., Luo, Y., Zhao, S., & Zhang, Q. (2020, April 3). Investment Opportunities and Strategies in an Era of Coronavirus Pandemic. 1-24.