Tips for Optimizing Profits and How to Invest in Mutual Funds
Investing in mutual funds is now a trend among the public, especially young people. This shows that public interest in investment continues to increase. In investing, capital alone is not enough. There are several things that must be prepared, one of which is the right strategy.
To get the maximum profit, a mature strategy is needed, this also applies to all types of investment instruments. In order not to take the wrong step, an investor must think carefully about strategies and ways to invest in mutual funds. If you invest because you follow the trend without looking at risk and not thinking carefully. It could be that instead of the gains, the losses will come.
Get to know 4 types of mutual funds so you don't choose the wrong one
Before discussing the right way to invest in mutual funds, it's a good idea to know the types of mutual funds. Knowing each type of mutual fund will help you avoid the risk of loss. The reason is because each type of mutual fund has a different level of risk. The following is an explanation of the 4 types of mutual funds in full.
- Money Market Mutual
Funds Money market mutual funds are the lowest risk types of mutual funds and are suitable for conservative investors . Although the risk level is relatively low, the benefits offered are quite large because it is above the bank deposit interest rate. Funds collected from investors will be invested by the investment manager who manages them into money market instruments or securities that have a maturity date of not more than one year. How to invest in money market mutual funds is quite easy and no timing is required, investors can invest at any time.
Examples such as Bank Indonesia Certificates (SBI) and certificates of deposit, the following is an explanation of the two types of debt securities.
- Bank Indonesia Certificates (SBI)
Bank Indonesia Certificates are types of securities issued by the government which generally have maturities ranging from 1 to 12 months. Profits obtained from interest rates provided from Bank Indonesia auctions.
- Certificate of Deposit
Certificate of deposit is a type of securities issued by banks to investors who invest their capital in deposits. The securities include the interest rate and maturity period. Usually the interest rates on deposits managed by investment managers are higher than deposits made individually.
- Fixed Income Mutual Funds This
type of mutual fund offers higher yields than money market mutual funds. However, with a relatively low risk, it is not surprising that many new investors choose fixed income mutual funds. Investment managers who manage fixed income mutual fund products will invest most of the investor 's funds in instruments that have a fixed profit value. Most of the funds under management will be invested in bonds and the rest will be invested in the money market.
For those who don't know what a bond is, it is a bond issued by a private company or government with a predetermined yield. The profits obtained from bond instruments tend to be stable so that it can be said that the income received will be fixed in value and will not experience significant fluctuations.
- Mixed Mutual Funds The
previous two types of mutual funds are more specifically for investors who do not want to face high risk. In contrast to the mixed mutual fund type, this type of mutual fund is more suitable for moderate investors . Moderate investors are the type of investors who want to get big profits but don't want to take too high risks. So they are the type of investors who are brave enough but full of caution because they don't want to suffer fatal losses. Investment managers who manage mixed mutual funds will invest investors ' funds into several instruments, including:
Share
Bond
Money market
- Equity Mutual Funds Equity
mutual funds are the type of mutual funds that have the highest level of risk but offer greater profit potential than other types of mutual funds. Stock mutual funds are more suitable for the type of investor who has an aggressive risk profile because basically stock mutual funds adopt the principle of high risk high return. Investment managers who manage stock mutual funds will invest most of the investor 's funds into stock instruments and the rest into the money market. How to invest in stock mutual funds requires a mature strategy and the right timing to get big profits.
The Right Way to Invest Online Mutual Funds for Maximum Profit
Nowadays, many young people are starting to realize the importance of managing their finances in the future from an early age, one way is by investing in mutual funds. However, in practice there are a few things you should pay attention to. One of the main things is the right way to invest in mutual funds in order to get maximum results and the desired financial goals can be realized.
Here are some steps to make the right mutual fund investment.
- Choose a Trusted Investment Platform The first way to invest in
online mutual funds is to choose an investment platform with guaranteed credibility. When there are many mutual fund investment platforms that have sprung up, not all of them can be trusted. So, you have to be more careful in choosing it. digibank by DBS is one of the safe and trusted mutual fund investment platforms. You can start investing in mutual funds through the digibank by DBS application easily, safely and practically.
- Determine the Investment Period
So that the investment made can be well organized and organized, you must determine the investment period first. The investment period consists of three kinds, namely:
Long term investment (more than 5 years)
Medium term investment (between 2 to 5 years)
Short term investment (between 1 to 2 years)
- Learn How Each Type of Mutual Fund Works
So that you don't choose the wrong product, you should do this one mutual fund investment method. If the previous explanation about the 4 types of mutual funds is incomplete, you can look for other references. There are many experts and professional investors who explain how each type of mutual fund works on the internet. Not only that, also understand the advantages and disadvantages to be used as material for further consideration.
- Ensure Product Legality This
online Mutual Fund investment method should not be missed because it will affect product performance in the future. Mutual fund products that already have permission from the OJK are certainly legal and worthy of being chosen. Make sure to always check the legality of the product to avoid fraudulent investments and minimize the risk of loss.
- Study the Mutual Fund Prospectus
In order to get maximum results, you should first study the contents of the mutual fund prospectus that will be selected. This is one way of investing in online mutual funds that must be done so that you don't choose the wrong product. By paying attention to the contents of the prospectus, you can find out what the investment manager's portfolio and performance are, licensing, fees, investment policies, and others.
How to Maximize Profits on Mutual Fund Investment
So that the investment made can bring big profits, you need to pay attention to several things. In the following explanation, there will be tips on how to maximize profits on mutual fund investments.
- Choose the One that Fits the Purpose
First, choose the type of mutual fund that suits your planned investment goals. For example, the purpose of investing is to save an emergency fund to increase its value, so the most appropriate type of mutual fund is a money market mutual fund. Besides being low, the risk of money market mutual funds also has a high level of liquidity.
- Choose the Right One for the Risk Profile
Get to know your risk profile to find out what type of Mutual Funds are suitable, basically there are 3 types of risk profiles, namely conservative, moderate, and aggressive. The conservative type is more suitable for choosing money market mutual funds, the moderate type is more suitable for choosing fixed or mixed income funds, while the aggressive type is more suitable for choosing stock mutual funds.
- Determine the Investment Strategy
There are two investment strategies that are widely applied by mutual fund investors , namely the simultaneous and periodic investment strategy. Periodic investment strategies are more appropriate for investors who have limited capital and are just trying. While the investment strategy is at the same time more suitable for investors who have large funds and are good at predicting investment timings , they are usually dominated by professional investors .
- Continue to Learn and Follow Developments in Information
Even though mutual fund investing does not require you to analyze and predict the market. Still, you must continue to learn and follow market development trends to find out the potentials that can be used as opportunities. So, don't be lazy to learn something new and follow market developments to maximize your investment.
Mutual Fund Investment Made Easier with digibank by DBS
digibank by DBS not only provides ordinary digital banking services but also offers the convenience of purchasing mutual fund products. Now you can start investing easily, safely and practically. The following are the advantages of purchasing mutual fund products through the digibank by DBS Application.Easy to Choose the Right Product with 3 Mutual Fund Categories
You can choose the right mutual fund product based on 3 product categories which are grouped based on the best performance, the most popular, and the best scoring
Buy, Sell, and Switch Can Be Done in One Application
Now you can easily make purchases, sales, and switch investments directly through the application. Even the SID registration process can also be done easily on the digibank by DBS application.
More than 50 Products Available
No need to be afraid of limited product choices because digibank by DBS provides more than 50 mutual fund products that you can choose freely.
Enough with IDR 100,000 Capital to Start Investing.
No need to provide large amounts of capital, now you can buy mutual fund products with a minimum capital of IDR 100,000 only.
Periodic Investing Becomes More Flexible with digibank by DBS
You can start investing in mutual funds with small capital on a regular basis more easily using the digibank by DBS Application. You do this by choosing periodic purchases without having to re-register on the next purchase. You can also change the investment amount and debit date directly in the application.
So how to invest in mutual funds in the digibank by DBS application is quite easy, you need to register SID first. Before making a purchase of the desired mutual fund product.