Investment, generally divided into two types, namely:
- Invest in financial assets .
- Invest in real assets (real assets).
Investment in financial assets is precisely done in the money market, for example such as certificates of deposit, money market securities (SBPU), commercial paper, etc.
While investing in real assets includes the activities of purchasing productive assets, opening up mines, building factories, plantations, and so on.
In addition, investment is also distinguished based on its principles, namely:
- Investment based on Sharia principles.
- Conventional investment.
Of course, each type of investment has different goals.
Specifically for sharia investment, a person’s goals or motives for investing include (Tandelilin, 2001):
- Getting a better quality of life is everyone’s dream, so various efforts to achieve it are still being done, especially achieving dreams in a way that is in accordance with Sharia principles.
- Reducing the inflation rate. Inflation is an indelible element in the economy, because to erase it is indeed very difficult. However, by investing in certain businesses, it can help reduce the adverse effects caused by inflation.
- One action to save tax. Various countries in the world carry out special policies to direct people to invest, by providing tax holidays .
Also, there are some additional benefits if someone invests their funds in a Shariah compliant field, including:
- In accordance with Islamic law, because it refers to the Qur’an and Hadith.
- Usury free, in the absence of usury, the profits derived from investment become halal.
- Safer, because sharia investment avoids the element of gharar (ignorance of both parties) or tadlis (ignorance of one party).
- Having laws and regulations, the legal basis for sharia investment has been stipulated in Law Number 21 of 2008 concerning Sharia Banking.
- Having social benefits, Islamic investment can help expand small businesses, and reduce the unemployment rate