Equity investments

Equity investments are generally associated with the purchase and storage of capital stock on a stock market by investors, both individual (individual) or company (institution) in anticipation of income from dividends and capital gains as the stock value increases. It also sometimes refers to the acquisition of equity (ownership) to participate in a private company (not listed) or a new company (a company being created or newly created). When investments are made in the new company, it is referred to as venture capital investment and is generally understood to have a greater risk than investments in situations where the shares are listed on the stock.

Indirect investments are generally made by individuals through mutual funds or other forms of storage that particular investment money has been raised most of their list prices displayed on the financial newspaper or magazine business magazine.

According to the Capital Market Law in Indonesia No. 8 of 1995 article 1, paragraph (27): "Mutual fund is a vehicle used to collect funds from the Investor to be invested in portfolio securities by the Investment Manager."

Mutual funds are generally managed by a well-known fund management companies (for example: Fidelity or Vanguard). By doing such a deposit of funds of individual investors the opportunity to diversify risk with a small capital as well as gaining access to the managing partner of professional expertise in the management of these funds. An alternative is generally carried out by investors and large institutions (such as large pension funds) is to hold the stock directly; the institutional environment many clients who have their own portfolios have what are called segregated funds in the opposite sense to, or in addition, collected, such as alternative to mutual funds.