17 Nov 2022 | Edukatips

Get to Know the Variety of BCA Investment Products: Mutual Funds & Bonds

In recent years, the investment trend has become increasingly popular with the public, especially investment through digital channels. Recognizing the growing trend of public interest in investing, now many financial and banking services companies, including BCA, present a wide selection of investment products to meet the increasing needs year after year.

BCA offers a variety of investment products that you can choose according to your needs, such as Mutual Funds and Bonds. For those wishing to invest in these two products, you can learn more about mutual funds and bond products at BCA below!

Mutual Funds at BCA

For those who are not familiar, a mutual fund is an investment vehicle made up of pool money collected from investors and henceforth invested in Portfolios of Securities by an Investment Manager. BCA offers a wide selection of mutual fund products that you can choose according to their profile risks and time horizon, such as Money Market Funds, Fixed Income Funds, Mixed Funds, Equity Funds & Index Funds. The details are as follows!

1. Money Market Funds

A Money Market Fund is a mutual fund that invests in money market instruments and debt securities with a maturity date of less than one year. This type of BCA mutual fund product is suitable for short-term investment with a very low level of risk/conservative. These funds are suitable for investors with a conservative risk profile.

Portfolio: 100% money market or debt securities with a maturity date of less than 1 year.
Volatility: relatively low

2. Fixed Income Funds

A fixed-income fund is a mutual fund that invests at least 80% of its net asset value in debt securities or bonds. The bonds invested also vary, from Corporate Bonds to Government Bonds, according to the policies of each product. Fixed Income Funds have an investment time horizon of one to three years.

Suitable for customers with a conservative risk profile
Portfolio: at least 80% bonds
Volatility: medium

3. Mixed Funds

As the name suggests, this type of mutual fund combines equity, debt, and money market securities. In layman's terms, investors will invest in stocks, bonds, and money market instruments in one securities portfolio.

This type of mutual fund investment combines several types of securities at once, and the level of risk is higher than Fixed-Income Funds and Money Market Funds. However, the potential return is higher.

Suitable for customers with a moderate risk profile
Portfolio: Maximum 79% stocks, bonds, and/or money market instruments
Volatility: Medium to High

4. Equity Funds

In this type of mutual fund, investors will invest at least 80% of their funds in stock securities. The risk level of this investment product is relatively higher than other mutual funds. Even so, the potential ROI is higher than other mutual fund products. Equity Funds have a long-term investment time horizon.

Suitable for customers with an aggressive risk profile
Portfolio: at least 80% of stocks
Volatility: High

5. Index Funds

An index fund is a mutual fund that invests at least 80% of the Net Asset Value in securities based on a respective index as its benchmark. The risk level of this investment product reflects each type of mutual fund.

Stock Index Funds carry relatively higher risks compared to other mutual fund choices. Still, they offer a higher ROI than other mutual fund products.

Suitable for customers with an aggressive risk profile
Portfolio: at least 80% of stocks
Volatility: High

Bonds Index Funds have a similar risk profile to that of Fixed-Income Funds.

Suitable for customers with a conservative risk profile
Portfolio: at least 80% of bonds
Volatility: Low s/d Medium

BCA Bonds

Quoted from the official OJK website, bond investment is a medium and long-term debt securities that can be traded. BCA offers two Government Bond products: Government Bonds (SUN) and State Sharia Securities (SBSN).

Types of Government Securities (SBN)		Name of SBN	Where to Invest	Investment Time Horizon	Minimum Investment
Retail SBN	Government Bonds (SUN)	Retail Government Bonds (ORI)	Primary Market & Secondary Market	Medium Short (1-3 years)	IDR1 Million
	Government Bonds (SUN)	Retail Savings Bonds (SBR)	Primary Market & Early Redemption	Short (1-2 years)
	State Sharia Securities (SBSN)	Retail State Sukuk (SR)	Primary Market & Secondary Market	Medium Short (1-3 years)
	State Sharia Securities (SBSN)	Savings Sukuk (ST)	Primary Market & Early Redemption	Short (1-2 years)
Non-Retail SBN	SUN	Fixed Rate (FR)	Secondary Market	Medium long (3 ≥ 10 years)	IDR100 million
	SUN	Forex Government Bonds (INDON)			USD30 thousand
	SBSN	Project-Based Sukuk (PBS)			IDR100 million
	SBSN	Forex Government Bonds (INDOIS)			USD30 thousand

That sums up the elaboration on the types of investment products along with their benefits. All investment products contain risks, and for that reason, investors are advised to invest according to their risk profile. Interestingly, BCA provides a solution to find out your risk profile directly in the Welma feature on myBCA upon registration for an investment ID (SID).

Wait no more! Invest now through the Welma feature on myBCA and get various attractive promos! For further information, please contact Halo BCA 1500 888 ext. 4 (for investment product services).