Investing is something that must be done to make your financial condition better. The number of types of investment instruments that exist today may make you confused in determining where you will invest your money. Generally, many people choose to invest safely, to avoid losses that affect their personal finances, therefore, deposits are widely used as an option to invest.

Money Market Mutual Funds

In deposits, your money is completely safe because it is guaranteed by the Deposit Guarantee Agency (LPS) in the event of bank bankruptcy. But in the world of investment known as "High risk, high return", the meaning is that the greater the risk the higher the profit. Then do you have to take high-risk investments in order to be more than using deposits? Of course not. You can invest in money market mutual funds.

Money Market Mutual Funds

Investment in the form of mutual funds is an investment made through mutual fund companies. The process is quite easy because all you have to do is collect some money and give it to the Investment Manager (MI) to invest in the money market. The amount of money you give will be converted into a mutual fund unit called Net Asset Value (NAB). The increase or decrease in the unit price of the mutual fund depends on the profits or losses made by your MI and also on domestic or foreign financial conditions.

As said earlier, in money market mutual funds, you will have an MI. An investment manager is the one who does your money turnover. In this case, MI will turn your money around in the money market for profit. Mi's cleverness in looking at money market situations and good types of investments will greatly affect the profits or losses you get.

Money Market mutual funds are the safest type of mutual fund investment compared to other types of mutual funds, but the benefits are also the smallest than others. Even so, investing in Money Market Mutual Funds will be better than deposits. Why?

Advantages of Money Market Mutual Funds Over Deposits

The following are the things that make Money Market Mutual Funds better than deposits:

1. Profits Can Be Higher

When you make an investment with a deposit, then the amount of profit you will get is certain from the beginning and the interest rate ranges from 4% to 6%. While by using Money Market Mutual Funds, you can get a greater profit than that. Why? Because the money turnover done is not only based on one type of investment product, so you can get a greater profit from a good money market investment product at that time.

2. Lower Minimum Investment Amount

In Money Market Mutual Funds, you can start investing with investment capital that is relatively low, which is Rp100 thousand. This makes it very easy for you to start investing, because the investment capital needed is not much and there is no difference in return between small or large capital.

Unlike money market mutual funds, deposits require you to have considerable investment capital. Generally, at least you have to put rp1 million to have a deposit. Of course with a small capital, the return you get is also only based on the lowest interest rate.

Money Market Mutual Funds

So for those of you who do not have a lot of capital to invest, it is better to start investing in Money Market Mutual Funds.

3. Flexible Fund Collection Without Fines

As you know, if you invest with deposits, the funds you put down can not be taken arbitrarily. There is a period of time that must be met first before the money can be taken without being hit with a fine. A fine will be imposed on you if the withdrawal of funds is made before the due date. So the process is inflexible.

Money Market mutual funds provide an opportunity for you to take funds more flexibly. You can take it at any time without any time frame to be met first. What's more, disbursement of funds in Money Market Mutual Funds can be done easily and anywhere because the process can be done online, so you do not have to bother making special time to go disburse your funds.

4. No Time Frame

Before choosing to invest with deposits, you should think carefully about the usefulness of that investment and make sure that the money you do not need according to the time period you have chosen. This is so that you are not subject to a fine if taken before maturity. But what if you suddenly need the money? This is where the advantages of other Money Market Mutual Funds.

Money Market Mutual Funds

When you make an investment in Money Market Mutual Funds, you do not need to worry about the future of the money, because money can be taken at any time without being hit by a fine. Even investments you can make in just 1 day, so it's really not complicated.

The Downsides of Money Market Mutual Funds

The above points are the advantages of the money market over deposits, but everything must have positives and negatives. The negative side of Money Market Mutual Funds you really need to know to know the field of investment you will make.

1. At risk

When investing with Money Market Mutual Funds, then your MI will do money turnover in the world of money markets and of course there is a risk that the place of turnover is wanprestasi. If that happens, you will suffer a loss. But the loss will not be too big because it is limited by regulations to only put a maximum of 10% on each type of money market. With the rules, you will not feel the loss that can spend all your investment capital.

2. Uncertain Return Value

Unlike deposits that have a clear return value, Money Market Mutual Funds provide a fluctuating return value so it cannot be predicted how much profit you will get. With this fluctuation in return value, you can get a big profit or even experience losses. It is up to you and your MI to be careful in choosing the best investment products and small risks.

Smart Investing With Money Market Mutual Funds

Based on all the reviews you have read above, it can be concluded that Money Market Mutual Funds are more risky than deposits, but with this relatively low risk, you can get better profits than by investing only in deposits. The most important thing in investing in Money Market Mutual Funds is that you must be good at looking at financial situations and smart in making choices, because it will affect the value of returns you get later. In addition, you must also have an MI that is also capable in doing so that it can help you in dropping options. Be a smart investor by using Money Market Mutual Funds.

WorldReview1989