Investment may be a jargon that is endlessly called by many groups both from parents to young people, from among the highly educated to the low. In addition, this one is often the jargon that is often used to lure people to “deposit their funds” somewhere from instruments in the real sector (asset investment) to financial instruments and if not careful, may be exposed to sweet seduction spreading bulging investment. This often makes many people fooled and tempted by the word investment that is often mentioned. Actually, what is an investment? I will try to explain more clearly in advance so that we are in the same view of investment.
According to the global investment dictionary, Investopedia.com, investment is an asset or item that has been purchased in the hope that it can bring in material benefits or increase prices. In the financial world, investment is a financial asset that is purchased in the hope that it can provide benefits in the form of money and can rise in value in the future.
What is meant by asset management? The definition of asset management is the process of decision making and its application in accordance with the acquisition, use and distribution of an asset. In addition, there are also those who explain that asset management is a systematic process that aims to maintain, renew, and operate assets sparingly through the acquisition, creation, operation, maintenance, rehabilitation, and write off of assets so that objectives can be achieved effectively and efficiently.
In other words, the core of asset management is the management of assets related to technical, financial, and good management practice. Asset management is needed to decide what is needed to achieve business objectives, and then to obtain and maintain assets for the life of the asset to disposal.
Basically the goal of asset management is to assist companies in making the right decisions so that assets can be managed effectively and efficiently. As for some of the objectives of asset management are as follows:
- To ensure ownership status of an asset.
- To inventory the assets and lifetime of the assets they have.
- To keep assets high and have a long life.
- To minimize costs over the life of an asset.
- To ensure an asset can generate maximum profits.
- To achieve optimal use and use of assets.
- For purposes of securing assets.
- As a reference in preparing a balance sheet in accounting