Mutual Fund Investments, What Do You Need to Know?

 Mutual Fund Investments, What Do You Need to Know? - For millennials who are already working, payday is the most awaited day. How not, your lifestyle when this date arrives usually returns to normal as usual. You can hang out again, shop, or buy a meal out so you don't have to cook anymore for a while.

Mutual Fund Investments

However, this lifestyle is what really needs to be changed if you want your finances to prosper in old age. Before spending, what's wrong if some salary is set aside for an investment account. From investing, you can get benefits that can be recognized as passive income.

One of the investment instruments that can be tried is mutual funds. In order for you to be more steady to invest in mutual funds, here are some things to know about mutual funds.

 1. The capital is quite affordable

Capital is one of the most questionable things when starting an investment. Take it easy because the capital in mutual funds is quite affordable, which is Rp 100,000. If you think it is too small, you can set aside Rp 500,000 or Rp 1,000,000 per month.

The money invested will usually be placed according to the type of mutual fund you choose at the beginning of starting the investment. Whether it's money market mutual funds, stocks, fixed income, or mixed.

Every month you can set aside money that is nominal according to the amount of capital at the beginning of the investment. If from the beginning you have set aside Rp 1,000,000, then consistently set aside this much. In 3 years, you can get a principal of Rp 36 million, not plus mutual fund interest.

2. Not managed alone

Different from other investment instruments, where you as the owner of capital are fully responsible for managing investments. In mutual funds, capital management will be assisted by an Investment Manager (MI).

With an Investment Manager, you do not need to be afraid of the same name of loss even though you do not know very well about mutual funds. The losses you experience become their own PR for the investment manager because this incident automatically reduces his income.

Mutual Fund Investments

Yes, the profits earned from mutual funds are not entirely private property. It should still be distributed to the investment manager in a certain percentage, according to the specified amount. Take it easy because the percentage is not up to 20% of the total profit.

3. The investment period

Just like investing in general, where investors have the right to determine the period of investment as needed. In mutual funds you can choose whether to invest in the short or long term. The short-term investment time span is usually 1-3 years, while the long term is 5 years and above.

If you want maximum profit, then invest capital in the long run. Where the principal value of the investment also increases if you deposit funds regularly every month.

If the validity period of the mutual fund has expired or is due, both the principal value and the profit will later be transferred to a personal account. You can use this as capital for DP home or want to continue to invest. Whatever your choice, the most important thing is that your salary looks like it is.

4. Mutual fund risk level

The world of investment, such as mutual funds also applies the name risk. The greater the return obtained, the higher the risk that must be borne by investors. Even more so when investing in stock-type mutual funds.

The emergence of risks in mutual funds can occur because the performance of issuers decreases, local and global economic conditions are turbulent, natural disasters occur, and political influence. Sometimes the risk also arises due to wanprestasi problems, where the issuer does not meet its obligations as agreed in mutual fund transactions.

However, you do not need to worry because the investment manager will help you minimize the level of risk in mutual funds. Choose a competent investment manager, who has high flying hours at a security.

5. Mutual funds tend to be safe

Investments are not entirely said to be safe because investors have to bear a certain amount of risk. However, when compared to other investment instruments, mutual funds fall into the safe category because the level of return that securities offer makes sense.

Different from P2P Lending or financing whose yield rate is twice as large. Or stock investments whose value can drop drastically following market trends.

No wonder if millennials who are first to jump into the world of investment are advised to try mutual funds before finally trying other investments. Call it stocks, forex, or foreign exchange (forex) whose risk is much higher.

Create an Investment Plan from Now on

Interested in investing in mutual funds? You can start making an investment plan from now on. Write down what the needs, investment objectives, and calculate the capital to be allocated to mutual funds.

Then, look for trusted securities to manage mutual fund investments. Do not forget to bring the required documents as a condition of starting an investment that can be accessed on the securities website in question.