BONSERNEWS.com – Mutual funds are not yet as popular as stocks or deposits. However, its development has steadily increased in the last 10 years. Understanding the risks involved is the key to investing in mutual funds.
Mutual funds are one of the people’s options for investing, apart from stocks, deposits or crypto. Mutual funds had soared when his name was often mentioned by comedian, Raditya Dika, as his choice of investment.
In many statements to the public, Raditya Dika often mentions mutual funds as one of his choices when it comes to saving money. Apart from mutual funds, Raditya Dika also mentions stocks and deposits as his investment places.
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Mutual funds are different from stocks or deposits in terms of asset management. In mutual funds, there is an investment manager who manages public money collected in mutual funds.
If in stocks or deposits, investors directly manage the shares. In mutual funds, the investment manager is the party that manages this mutual fund.
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Talking about investment risks, mutual funds present various risks. Some are low risk. However, there are also those who are at high risk.
Money market mutual funds are one that is said to have low risk. The return on assets or money in money market mutual funds is approximately only a year.
Meanwhile, stock mutual funds are said to have the highest risk. Stock fluctuations every day are very fast. This makes stock mutual funds in general only able to provide return on assets within 5 to 7 years.
The choice to save money in the form of mutual funds must pay attention to the capabilities and credibility of the chosen investment manager. Thoroughness in selecting and trusting investment managers is the key to success in mutual funds.
Mutual funds provide benefits for investors. Compared to stocks, mutual funds do not burden investors to intensely monitor economic developments. All problems and constraints in investment are fully managed by the investment manager.
Recently, it has become easier for people to choose mutual funds. You don’t need big funds to start investing in mutual funds.
All these advantages, still provide risk. Choosing mutual funds, means ready with all the risks.