*Update : 1 Mar 2024
Mutual funds are one of the investment alternatives for investors to get access to the stock market, even when they have limitations of capital, time, or skills.
In Indonesia, there are 4 (four) types of Mutual Funds available: Money Market Mutual Funds, Fixed Income Mutual Funds, Mixed Mutual Funds, and Stock Equity Funds. The four Mutual Funds types reflect different risk levels and potential returns, making them suitable for different investor profiles with different investment targets. But, in principle, the high-risk high return concept also applies to Mutual Funds. Meaning, higher investment returns may also need higher risks.
| Asset Class | General investment policy | Mutual Fund Risk | Appropriate Investor Risk Profile | Suitable For Investment Purposes | Commonly Used Benchmarks |
|
Money Market Mutual Funds |
100% of Money Market Mutual Funds instruments are Debts issued with a period or a due date not more than 1 (one) year. |
Low |
Very Conservative |
Short-term |
Average Deposit |
|
Fixed Income Mutual Funds |
Minimum 80% of Net Asset Value is in the form of Stocks and Debts, such as debt securities or obligations. |
Low-Medium |
Conservative |
Medium-term |
Bonds Index |
|
Mixed Mutual Funds |
Maximum 79% on the Money Market Instruments, Stock is Debt that is Equity/Share. |
Mid-High |
Moderate |
Medium and Long-term |
Stock and Bonds Indexes |
|
Equity Funds |
Minimum 80% of Net Assets is in Stocks that is Equity/Share. |
High |
Aggressive |
Long-term |
Stock Index |
From investment management perspectives, Mutual Funds are divided into two, namely Sharia Mutual Funds and Non-Sharia Mutual Funds. The difference is Sharia Mutual Funds are managed by sharia principles and invest funds in instruments included in the List of Sharia Securities (DES). The additional benefit is Sharia Mutual Funds provide peace of mind for those who attach importance to sharia principles in making investments.
Investing in mutual funds is now very easy and practical, one of which is through the myBCA application.. Make sure you read and understand the Mutual Funds prospectus consisting of complete information about the Mutual Funds before buying one. That way, the Mutual Funds you choose will be the most suitable for the goals and risk of your investment. Besides, make sure all legalities and official permits from relevant institutions on Mutual Funds management are legitimate. Happy investing!
Writer: Liza Lavina, EVP Intermediary Business Schroders Indonesia
Disclaimer:
Mutual Funds is a product of the stock market, not PT Bank Central Asia Tbk. (BCA)’s and BCA is not responsible for any charge and risk of Mutual Funds portfolio management. Mutual Funds investments are not a part of third-party savings in BCA, hence not guaranteed by BCA and are not included in the Government’s guarantee program object or deposit insurance. BCA only acts as the Mutual Funds securities selling agent. The risks of investing in Mutual Funds may make investors lose some or all capital invested. Mutual Fund's performances in the past are not a guarantee of future performances. Prospective investors must read and understand the Mutual Funds prospectus before deciding to buy a Mutual Fund unit.
PT Schroder Investment Management Indonesia is authorized as Investment Manager and supervised by Indonesia Financial Services Authority (OJK), and is supervised by the OJK.