Choose a Definite Investment with Fixed Income Mutual Funds

 

Choose a Definite Investment with Fixed Income Mutual Funds - Rather than investing in uncertain instruments, such as bitcoin, it's better to park money on fixed-income mutual fund products. Low-risk investments, but cuan.

Fixed income mutual funds are a type of mutual fund whose most investment allocation is placed on debt securities that provide a fixed income. For example, such as bonds or bonds that mature more than 1 year. Both corporations and governments.

Mutual Funds

Called fixed income because the bond or bond gives a definite yield on a regular basis, for example once a month or 3 months. In addition to the above understanding, you need to understand some of the following if you want to invest in fixed income mutual funds.

Managed By Investment Manager

The allocation of fixed income mutual fund investments is at least 80 percent of the assets owned or assets. Well who invests or rotates your capital is the Investment Manager (MI).

He's the one who's going to manage your funds. For example, the Net Asset Value (NAB) of mutual funds from selected securities amounted to Rp 1,040 per unit, meaning you have 961.54 units.

Mutual Funds

By the investment manager invested into Sukuk Retail with a tenor of 3 years. The investment manager also rotates the coupon or yield or capital gain from the difference in selling and buying prices if the Retail Sukuk is sold.

The goal is that the investment results or profits of your fixed income mutual funds are more optimal. Therefore, make sure you choose an investment manager who pockets a business license from the Financial Services Authority (OJK).

Suitable for investors who are looking for safety

Fixed income mutual funds have a medium level of risk. Why? Because the risk is higher than money market mutual funds, but lower than stock mutual funds.

Suitable for those of you who are conservative type aka find safe. It can be used as an option to diversify investments when the economy is still gonjang ganjing as it is today.

The profit of an investment is directly proportional to the level of risk. Even in fixed income mutual funds.

The yield or return on fixed income mutual funds is around 7 percent to 8 percent per year. The average can be 9 percent.

Higher than money market mutual funds about 4.5 percent to 5.5 percent per year. Also deposit with an interest rate of about 3 percent to 5 percent.

Not a long-term investment.

Fixed income mutual fund investments are not long-term instruments. This investment is best suited for a period of a year to 3 years.

Dime capital

Unlike stocks, gold, and property, fixed income mutual fund investments can start with small capital. Starting from Rp 100 thousand only.

If online mutual fund investment in e-commerce is even cheaper. The capital is very dime, starting from Rp 10 thousand. It can be top up every month.

Can be taken at any time

The good thing about investing in mutual funds, including fixed income mutual funds is that it can be disbursed at any time. That is, you can sell mutual fund units at any time when you need urgent funds. There are no fines or penalties either.

If you want to quickly sell or cash out mutual funds, the most appropriate time is on weekdays before 13.00 WIB. This is already the provisions of the Financial Services Authority (OJK). Contained in the OJK Regulation on Mutual Funds in the form of Collective Investment Contracts.

The money will be transferred by the Investment Manager for a maximum of 7 business days of the exchange since the sale transaction was successful. But usually, funds will be transferred to a bank account on behalf of the investor about 2-3 business days from the time the sale transaction is successful.

The price is volatile

Fixed income mutual funds have the risk of decreasing the value of participation units, because it is influenced by the falling price of debentures. But if the price is rising, the value of mutual fund units will also be eroded.

But no need to worry, the investment manager has flight hours that need not be doubted. They must have a strategy to deal with these possible risks.

Liquidity risk and not guaranteed LPS

Other fixed income mutual fund investment risks, namely:

1. Liquidity risks involving difficulties from investment managers to provide cash when investors are crowded to withdraw their mutual funds

2. The risk of default is the risk that arises when the insurance company that insures mutual fund wealth does not immediately pay compensation or pay lower than the value of coverage when unwanted things happen that can lead to a decrease in NAB

3. Investor funds are not guaranteed by the Deposit Guarantee Agency (LPS) because they are not banking products.