Jakarta, CNBC Indonesia – Right on trading session I Thursday (2/5/2024), quite a few shares of giant banks in Indonesia fell. This incident occurred not long after the United States Central Bank (The Federal Reserve/The Fed) announced that they would not rush to cut interest rates.
As is known, several large bank shares such as BMRI fell by 8.7%, BBNI fell by 6.3%, BBRI by 4%, and BBCA by 1% in trading session I. The decline in these shares was allegedly the cause of the collapse of the Price Index Joint Stock (IHSG).
An increase in the Bank Indonesia (BI) Reference Interest Rate could also have a positive impact on banking due to the potential for an increase in NIM or net interest margin, an increase in interest rates also has the potential to reduce public interest in borrowing funds, which could lead to risks for banking credit growth.
When you assess that there is still potential behind the decline in prices of these large cap stocks, then buying at a cheap price is certainly a great opportunity, especially for long-term investors.
But what happens if you have a limited amount of cold cash? Wouldn't spending all your cold money be very risky in the future?
In fact, there is a smart way for stock investors to take advantage of the decline in blue chip stock prices, namely by implementing the Dollar Cost Averaging (DCA) strategy.
DCA has also proven to be an effective way for investors with small capital to invest regularly.
What does a DCA strategy look like?
DCA is an investment strategy where you buy assets periodically, whether weekly, monthly, or even daily. By applying DCA, you will get the average price of the investment assets you buy.
When the price of an asset falls or is at a discount, this is an opportunity for you to buy an amount that suits your budget. By making these purchases periodically, you can lower your average purchase price. This will benefit you when the asset price returns to normal or rises.
Some investment instruments that are suitable for the DCA method include gold, mutual funds and shares. The DCA method is also considered an alternative to lump sum investments, namely investing large amounts in one purchase.
DCA has proven to be an effective way for investors with small capital to invest regularly.
[Gambas:Video CNBC]
Next Article
Video: Hunting for THR from Stocks in the Month of Ramadan
(aak/aak)