Mutual funds are a forum used to raise public funds as investors. Mutual funds are one type of investment that can be made by beginners, because investors are small and do not have much time and expertise to calculate the risk of their investment.
Referring to Law No. 8 of 1995 concerning the Capital Market, funds from the investor community will then be invested in a securities portfolio which is then entrusted to the Investment Manager to manage it. Investment profits will later be obtained through the distribution of dividends or interest which is recorded at Net Asset Value (NAV), so that the Investment Manager will get fee of a determined percentage of the asset’s value.
There are many types of mutual funds, namely money market mutual funds, fixed income mutual funds (RDPT), mixed mutual funds and mutual funds. stock mutual funds. Some of the advantages of investing in mutual funds are;
- You can start with a capital that is not too large and you can diversify your investment in securities.
- Make it easy for investors to invest in the capital market, even with limited knowledge in determining which stocks are good to buy.
- It is easier and more efficient, because investors do not have to monitor their investment performance continuously because they have been assisted by a professional Investment Manager.
One type of investment that is quite in demand by the public because it return which is quite promising is the stock mutual fund. Stock and stock mutual funds are not much different, because both have portfolios in the form of stocks.
This portfolio will be managed by the Investment Manager by selling and buying shares when the stock price allows for transactions. The results obtained from stock mutual fund investments are the difference in the increase or decrease in the selling and buying price of shares.
The way to play stock mutual funds with stocks is very different. Unlike stock investors who have to go directly to observe price fluctuations, stock mutual fund investors do not need to, because the Investment Manager will directly observe.
Then not all shares can be purchased through stock mutual funds. Only companies that have legal entities listed on the Indonesia Stock Exchange (IDX) or abroad can be purchased through equity mutual funds, this is because to protect investors, and the company registration procedure is not easy because it is directly supervised by the Financial Services Authority (OJK).
As for the way simple and flexible in starting mutual fund investments through digital banking which is a banking service through digital media, so that it can provide freedom for investors to control assets anywhere.
Return offered by stock mutual funds is indeed quite promising. But don’t be fooled by offers return which is tempting, because behind it there is a high risk. Equity mutual funds are known as the principle of high risk high return. The risk of stock mutual funds is higher when compared to other types of mutual funds.
Understand return and risk It is very important so that the results obtained from stock mutual funds are maximized. risk or risk Stock mutual funds are very volatile, so conditions cannot be predicted easily.
The profit and loss figures for equity funds can rise sharply or fall freely at any time. By nature high risk high return, does not become a barrier in investing in equity mutual funds. With good and proper planning, of course all risks can be minimized properly, it is even possible that it will become a double profit.
So that you can get the maximum benefit from stock mutual funds, here are some: tips what you need to know;
- Defining the Right Financial Plan Goals
The right investment is to carry out investments with financial goals in the long term. If one day you need emergency funds while the investment you choose is a stock mutual fund, then this type of investment is not right.
Stock mutual fund investments require at least 15 years or more as the ideal timeframe. This is due to high fluctuations in market prices that are always changing. Stock mutual funds are recommended for those of you who have a long-term financial plan of more than 15 years.
If you do it for a long enough period of time, there is a possibility to get return very high.
- Review Equity Mutual Fund Performance
The best way to find out the performance of a stock mutual fund is to do review performance. The right time to do review performance is once every five years, because stock mutual funds can only show return actually after the long run. Data that shows consistency of performance over a long period of time is needed, so that you are not fooled.
One of digital banking which is suitable for you, to start investing in stock mutual funds is through the service digital banking from the digibank by DBS app. The digibank by DBS application is more complete with a choice of investment products such as Padang restaurant offerings, all types of investments are available.
With an initial capital of Rp. 100.000.00, you can already invest in stock mutual funds on the application digibank by DBS. The mutual fund category is easier because it is the best performing, most popular and scoring best. You don’t need to download a lot of mutual fund applications, because by using digibank by DBS, you can buy more than 50 products, sell and switch from one application.
Purchase fees on the digibank by DBS Application are very competitive by prioritizing transparency in transactions, all fees will be raised before you confirm the transaction so that purchases can be made regularly and flexible. The process carried out by digibank by DBS is 100% digital at the safest bank in Asia, namely DBS Bank.
For those of you who are curious about investing in equity mutual funds, you can try downloading the digibank by DBS application and improve the way you invest with a wide selection of products to manage finances only through one application. You can also visit his social media at @digibankid for more info.
