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Asset Allocations

In the classification of job or function in our economic community people are either employee (working for any institution owned by others and receive salary), self-employed (working in his own company that is usually related to professional preference like doctors, lawyers, and etc. and receive fees), businessman (employed others to follow the system that he has created and gain profits), or investors (Using his assets to create better returns, that to say making his money to produce money).

Majority people start at the very begining of the function down to be either self-employed and/or investor or businessmen and/or investors. There will be a time when almost everyone has greater asset, spesifically money, to fulfill his basic needs (food, clothing, housing, etc). When this condition occurs he will decide and do an economic act that is to choose his next step with the purpose to advance his economical life.

There are misleaded understanding in our community, such as: higher return will always require higher risk, or only the rich can join in the field of investment.

In the field of investment there are various investment types that people can choose from, such as savings, bonds, mutualfunds, insurance (?), stocks, property, and derrivatives.

There's a general understanding that people choose the kind/s of investment according to 2 areas. These are their risk-profiles and expectation of the ROI (Return of Investment). Additionally they have to understand that generally (not all) higher risk lead to higher return.

Most of the investment types mentioned above require quite sum of money, but that also is not always the case, since there are so many new kinds of investment instruments are developed nowadays.

The highest leverage of all investment by it's nature is in the derrivative market.
The highest liquidity of all investment by it's nature is in the derrivative market and/or open trade market.