Mutual fund investment is an investment option suitable for beginners because you can entrust the funds to investment managers who are experts in their fields. So there is an extra security guarantee that you can get.
Mutual funds can also be referred to as mutual funds or pooled funds. That is, a mutual fund is a container that holds funds from many investors at once and then pours that money into buying capital markets investment products.
There are various investment products to choose from with mutual funds, such as stocks, shares, and bonds. As an investment vehicle, mutual funds are a safe choice for beginners. What does that mean? Come on, find out the answer below.
Definition of Mutual Fund Investment
Mutual fund investment is a place for raising public money managed by a legal entity called an investment manager. The funds are then invested in securities such as stocks, bonds, and money market instruments.
Types of Mutual Fund Investment
1. Money Market Mutual Funds
Investment funds that pursue an investment policy based on deposits and/or money market instruments (e.g. corporate bonds with a term of less than one year), maximum 100%. Suitable for short-term (less than 1 year) financial goals and for investors with a conservative risk profile.
2. Mutual funds with fixed-income securities
Investment funds that have an investment policy in government securities and/or government Sharia securities (minimum 80%). Suitable for achieving financial goals with a term of 1-3 years and for investors with a conservative-moderate risk profile.
3. Mixed mutual funds
Mutual funds that have an investment policy for types of securities, including money market instruments, bonds and equities (with a maximum of 79% for each security placement). Suitable for achieving financial goals with a maturity between 3 and 5 years and for investors with a moderately aggressive risk profile.
4. Equity Mutual Funds
Investment funds that pursue an investment policy for types of equity securities (at least 80%). Example of meeting financial goals with a maturity of more than 5 years and for investors with an aggressive risk profile.
Benefits of Mutual Fund Investment
The brief explanation above should be enough to explain why investing in mutual funds is the right choice for you. You can reduce the risk of investing, especially if you are a beginner who only has capital and wants to save.
You can feel at least five advantages of investing in mutual funds, namely:
1. Relax because the fund is managed by a professional investment manager
You do not have to worry about technical problems and constantly monitor capital market developments. Simply select the type of mutual fund that you find suitable and leave the rest to a professional investment manager.
2. Can be customized to meet financial goals
In addition, mutual funds are very flexible and do not require large amounts of capital. For example, if you want to raise an emergency fund, just choose an RDPU suitable for short-term investments.
3. Low risk
Remember that investments are always risky. Therefore, the most important thing is to try to minimize these risks. Well, mutual funds can overcome these challenges, especially when it comes to short- and medium-term investments.
4. Save time and energy
For those of you who do not have time to constantly watch the capital market and study interesting portfolios of securities, investing in mutual funds is ideal. Just trust one of the best mutual fund applications.
5. Portfolio diversification
The final benefit is portfolio diversification. You may be familiar with the principle of “don’t put all your eggs in one basket”. Mutual funds allow you to split your investment capital into several different investment products.
So if an investment product falls in value, you can still count on the benefits of other investment products.