BONSERNEWS.com – Are you interested in investing in mutual funds but don’t understand what mutual funds are?
Mutual fund investment is perfect for those of you who don’t have enough time to do market analysis.
If described simply, mutual funds are a system of depositing funds from investors to investment managers who work in fund management companies.
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So, the money you invest will be managed by a professional investment manager.
Fund management is tailored to the mutual fund product you want. There are 3 mutual fund products, namely as follows.
1. Money market mutual funds
If you choose a money market mutual fund, then your investment funds will be channeled into money market products such as deposits, Bank Indonesia Certificates (SBI), and Money Market Securities (SPBU).
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The rate of return for money market products is guaranteed and the amount of profit earned is not far from the prevailing interest rate.
So, money market mutual funds are suitable for those of you who want to invest with minimal risk. However, the possible profit value may be lower compared to other mutual funds.
The investment period for this product is better used for short term goals.
For example, if you intend to save for holiday funds at the end of the year, then you can open a money market mutual fund at the beginning of the year.
2. Fixed income mutual funds
Fixed income mutual funds are suitable for those of you who have medium-term investment goals.
If you buy a fixed income mutual fund, your funds will be invested in various types of debt securities (bonds).