Passive and active investing can both provide additional income. But, there are some differences between passive and active investing. You can probably guess the characteristics of each from the name. To make it clearer, read on to understand the differences between the two and find out how to make passive and active investments more easily with Bank Jago and its ecosystem.
Investment Strategies: Passive and Active
There are some striking differences about passive and active investment strategies.
What is passive investing?
As the name suggests, passive investing is a strategy implemented by investors who want to manage their investments more effortlessly. Buy-and-hold is often associated with passive investing.
Those who want to invest for the long term and get maximum returns without wanting to spend more energy and more time managing investments can apply a passive investment approach.
What is active investing?
In contrast to passive investing, active investing tends to suit investors who are more ambitious and want to maximize returns more quickly, usually by taking advantage of market fluctuations.
To be a good active investor requires deeper analytical skills. Inaccurate or incorrect analysis or calculation can lead to greater risks than passive investing, such as losses.
Easy Ways to Take Passive and Active Investment Approaches With Bank Jago and Its Ecosystem
Types of investment such as mutual funds and stocks, for example, recognize passive and active investment strategies. There are investors who actively buy and sell stocks. Mutual funds are also divided into two types, namely passive and active mutual funds.
Which investment strategy are you more interested in? Passive, active or even a combination of both? Whatever investment strategy you choose, by having a Bank Jago account, you can enjoy easy and practical passive and active investing.
1. Investments that generate passive income: Jago Term Deposits/Sharia Deposits
Deposits are savings products that you can get at banks. By saving or investing a certain amount of money in a deposit, you can earn passive income.
The more money you save in a deposit, the more passive income you can get. And, the longer you save in a deposit, the more profit you will get from the combination of principal funds and passive income.
Passive income in the form of interest can be enjoyed by conventional Jago users through having savings in Term Deposits. Meanwhile, Jago Syariah users can earn passive income from profit sharing by saving money in Sharia Deposits that use Mudharabah Muthlaqah akad according to sharia principles.
Is saving in a Term Deposit/Sharia Deposit for a short or long term? It depends on the period you choose according to your needs. You can save for as short as one month. But, you can also save for 12 months.
The Term Deposits/Sharia Deposits can be opened, withdrawn and closed via the Jago application. As such, you don't need to take time out of your busy schedule to stop by Bank Jago just to open, withdraw or close your deposit.
2. Invest in mutual funds without switching applications with Jago/Jago Syariah and Bibit
A kind of investment that you can easily do after having a Jago/Jago Syariah account is mutual fund investment on Bibit. Make sure you already have a Bibit account then link it to your Jago/Jago Syariah account to enjoy simple investing without switching applications.
Moreover, by upgrading your Bibit account to Bibit Plus using Jago/Jago Syariah RDN, you can access various investment options other than mutual funds.
Various other benefits of linking your Jago/Jago Syariah account with Bibit when investing in mutual funds are free top-up fees for purchasing mutual funds, being able to save regularly on Bibit using the Jago Autodebit, and being able to redeem your mutual funds quickly (especially certain products marked with a lightning bolt) directly to the Jago/Jago Syariah Pocket.
3. Hassle-free stock transactions the way you want/according to sharia using Bank Jago/Jago Syariah RDN and Stockbit
The Bank Jago ecosystem that you can also enjoy regarding investment is investing in stocks on Stockbit. To be able to buy any stocks on Stockbit, you need to open Jago/Jago Syariah RDN first. In just a very short time your RDN will be ready and can be used to start stock transactions. Creating a Jago/Jago Syariah RDN can be done from anywhere and at any time.
Of course, to be able to start buying and selling stocks as part of your investment strategy, your Jago/Jago Syariah RDN needs to have a balance first. To add balance to RDN via the Jago application, you can move funds from your Jago Pocket to your RDN Pocket. An easy and practical way to top up RDN, right?
For Jagoans who have a preference for transactions only in the sharia capital market, learn what differentiates Jago Syariah RDN from Jago RDN in this article.
