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ABSTRACT
Investment is a financial decision currently made by many people. Obviously, people must face the failure of their investment. Based on the case of investment scam in Erni Fashion in Salatiga - Indonesia, the main cause of failure is that investors do not have enough understanding of investment and of the asset or product of investment. Therefore, investment education plays an important role in enabling people to invest well, from gathering information until making a decision.
Keyword: Investment, Risk, Return, Profit Sharing
Introduction
Most people in Indonesia think that investment is practiced by wealthy people and associated with investment products like stocks. Middle-low income and less educated people think investment is not relevant to them, so they never evenly distribute their spending to an investment product. It happens because they never get enough investment education from either government or financial institutions. They also face illegal investment from illegal financial institutions, which offer high return products, whereas people invest to increase their money. It shows that investment education plays an important role for Indonesian people.
Generally, there is no big difference between personal and business institutions' cash flow, which includes cash-out and cash-in. Cash-out includes daily expenditure, extraordinary (emergency) and investment. Cash-in comes from revenue (wage, net income), return of investment and debt. The effort to increase return of investment is how to choose the right investment, which has greater return than its risk.
Investment is an activity intended to increase personal assets. The asset itself has two meanings, non-financial and financial. First, non-financially, increasing asset is increasing an intangible thing, such as ability and relationship. Second, in its financial, increasing asset is increasing the economic source, such as money.
Formally, people invest financially by saving money at financial institutions or buying property. At financial institution people can choose deposit, bond, or stock. If people save their money in property it can be land, houses, or gold. Yet, some people make an informal investment by entrusting their money into relative's or friend's business. The informal investment institution uses this condition to offer bogus investment for its advantage, such as QSAR, Ibist and Erni Fashion (See on table 1.). This kind of deception happens not only in Indonesia. All that institutions still have the...