rancakmedia.com – Mutual fund investment is a common form of investment today. Many people use investing as a source of passive income. Likewise, with the availability of media other than financial planning programs, public knowledge about investment also increases.
Learn About Mutual Funds
Mutual funds consist of many types of funds that are managed to help investors acquire stocks, bonds, and other investment instruments. Investing in mutual funds is an easy task because it is a small investment with low entry requirements, it can be done alone or in a group, and there is an investment manager who will help you.
Investing in mutual funds is regulated by state and federal laws. The Capital Market Number 8 of 1995 states as follows: You also don’t have to worry about choosing a mutual fund investment because the Financial Services Authority (OJK) oversees the operation of mutual funds. You should understand the process, including the following before investing in a mutual fund.
Understand How It Works
Mutual funds are an investment management structure in which there is an investment manager. Assets will be distributed to various vehicles or investment companies after due diligence. Proof of loss of your investment activity is enabled by this feature. If ABC Company goes bankrupt, your investment will be protected because you still have other regulated instruments at your disposal.
Mutual funds are easily accessible and have many distribution channels. With its wide availability, you can investigate issues related to investment flows, as well as learn about the well-being of businesses, and find out about the benefits and advantages of these flows.
Set Goal
Before making an investment, it is important to identify the reasons behind it. Your investment serves one of many different funds. The investment you want to make will be related to the type of mutual fund you choose and the timeframe you will invest in. You must have a goal in mind to invest in mutual funds.
You must have an understanding of your risk profile, as well as objectives. In mutual fund investing, there is always a danger of losing money. Mutual fund investing also carries the danger of making less money, which will cause the value of the investment to decrease.
Research and Know About the Types.
Before you start investing, it is advisable to know in advance the types of mutual funds available. Various mutual funds include:
a. Low Risk, Traditional Fixed Income Mutual Funds
Mutual funds whose investment funds or money are dedicated to bonds of at least 80% are called fixed income mutual funds. For the most part, their rates of return are higher than money market mutual funds, which are typically between 10% and 11% annually.
b. Retirement Savings Invested In Money Market Mutual Funds
SBI (Bank Indonesia Certificate) and bonds are all funds in mutual funds which only consist of deposits and bonds. This type of mutual fund has a maturity period of less than one year. Mutual funds that have money market securities are relatively safer than other mutual funds, but have limited potential returns.
c. Protected Mutual Funds
Fixed income mutual funds, these funds have investment funds held in bonds which will offer an extra layer of security at the end of the investment period. The name of the mutual fund accurately indicates its typical level of protection; You will always have 100% of your principal amount, even if you withdraw funds according to the specified time period.
d. Most Equity Funds Charge Sales Commission
The goal of equity mutual funds is to include at least 80% of all funds in their fund portfolio. This shows that, because you have the ability to earn the most profit when compared to other mutual funds, you will get the most profit in total. However, the danger is also higher because of the ‘high risk, high return’ characteristic.
e. Mixed Mutual Fund
As the name implies, a mixed fund invests funds in a combination of equities, bonds, and savings accounts. Mutual funds with these characteristics will outperform fixed income funds and have a higher risk.
Have Knowledge Where to Get It
Are you familiar with funds that buy into each other? To invest in mutual funds, you can buy funds directly from an investment manager or through a broker. Your license as a Mutual Fund Selling Agent also allows you to purchase mutual funds from an FDIC-insured bank (APERD). There are clearly advantages and disadvantages to each of these buying strategies.
Here are some steps for mutual fund investment:
Investing in mutual funds can be done by various methods, namely as follows:
Exchange Days Are The Only Days On Which You Can Make Trades.
The process is identical to creating a bank account. The registration process at the time of registration will require you to provide the original signature, collect the required paper photocopies, and prepare the initial investment.
To register, you must have a KTP and NPWP. On the other hand, in addition to including amendments to the articles of association and various other requirements, institutions are required to make changes to other legal documents. To fulfill the OJK ‘know your customer’ concept, all these papers are required.
This is especially relevant because the investment manager receives all of these documents in person or through a sales representative. To implement the preferred mutual fund product, you will deposit funds into an escrow account upon request.
Net Asset Value Transactions to be Executed (NAV)
Net asset value (NAV) is the current market value of all mutual fund assets each day. Another factor that affects the net asset value of a mutual fund is the demand and supply by investors. Mutual fund pricing is often reported once a day in newspapers or online.
Make sure you receive payments every day no later than the time limit stated above
The time limit stated above is between 12:00 p.m. and at 13.00 Mutual funds purchased before the deadline will get the net asset value (NAV) on the transaction date. Meanwhile, if you buy the mutual fund after the cut-off time, the NAV price will be T+1 (one day after the day you bought the mutual fund) on the next trading day.
You Will Get A Confirmation Letter When Investing In Mutual Funds.
You must enter all transaction details to record the transaction. The custodian bank will provide you with a receipt for the mutual fund purchase transaction they made on your behalf. Next, you will get a monthly report detailing the success of the investment fund. Keeping track of your mutual fund holdings is highly recommended. Check with your bank or investment manager if you do not receive a deposit.
That’s a general list of investment methods and ideas that you should consider when investing in mutual funds. Before you start investing, be knowledgeable and diligent. The two main ways to invest in long-term finance are through mutual funds, and through online accounting software. The accounting process can be made simpler by using accounting software, which includes financial recording and reporting.
Internet accounting software that makes bookkeeping simpler Apart from recording all your financial transactions, you can generate reports quickly by using this application. Apart from managing inventory, you can also monitor company assets, as well as outstanding liabilities. Journal’s cloud-based solution gives you simple and constant access to all your financial information, wherever you are and whenever you need it. If you want complete information about the Journal, go here.
Conclusion
Mutual fund investing is a common form of investment today. There is always a danger of losing money, which will cause the value of the investment to decrease. Mutual funds can be done alone or in groups, and there is an investment manager who will help you. Mutual funds that have money market securities are relatively safer than other mutual funds, but have limited yield potential. Investing in mutual funds can be done by buying funds directly from an investment manager or through a broker.
There are clearly advantages and disadvantages to each of these buying strategies. Investing in mutual funds is a good way to invest in long-term finance. The two main ways to invest are through mutual funds, and through online accounting software. If you do not have a KTP or NPWP, you must deposit funds into an escrow account upon request.
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