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3 Types of Mutual Fund Investments Based on Risk Factors


Maybe you have often heard about this one investment. But they are not yet interested in investing in venture capital here because the investment system is not clear.

For those of you who intend to invest, mutual funds can be an option. This investment can be done by anyone. Starting from small investors to large investors can try it.

If you still feel guided by the security of this investment, it’s a good idea to know important things about mutual fund investing , along with  an easy explanation.

1. Get to know mutual funds

Mutual is a place to raise funds from the public by an investment manager. Furthermore, the funds raised will be invested in the securities portfolio. Namely investing in several securities, such as stocks, bonds and others.

An investment manager is a person or institution that manages a portfolio of securities. Sell ​​and buy or lay off existing shares. He is responsible for the performance of the Mutual Fund.

2. Procedure

Investors’ investment funds will be invested in several fields or companies. So that if one’s feeling has decreased in value, then the value of your investment will certainly decrease as well.

Investments in several companies can cover losses to one of the companies that experienced a decline in value. The investment manager will determine which companies will be retained or released, so that mutual fund investments will not suffer losses.

3. Types of Mutual Funds

These investments can be classified into four types of investments that can be used to develop the funds you have. Here are some types of mutual fund investments available

  • Reksadana Protection

Also called fixed income mutual funds. Investment funds are invested in bonds that can provide protection. This type of investment carries very little risk and the return on investment will be small.

  • Money market mutual funds

Investment funds are allocated to deposits and bonds held at Bank Indonesia. This investment is classified as safe and not too risky. But the results that will be obtained are not too big.

  • Index Mutual Funds

Mutual fund investment is similar to stock investment. It can be traded at the ITF (Exchange Trade and Fund). The selling price and the buying price depend on the current market price. This type is more risky but the results obtained are greater.

  • Mixed mutual funds

This is a mixed-type investment that is very risky but gives big returns. In this investment, several provisions are used for combining several investments.

It’s a good idea to first understand the rules of the game so you don’t get caught up in big losses. If you are still in doubt it is better to avoid big investment risks, start with safe investments.

4. Destination

There are so many types of mutual fund investments, you must choose them according to your investment needs. For that you need to determine the length of time to invest, the amount of funds to be invested and how much profit is expected.

After everything is answered, now you can choose the appropriate type of mutual fund investment . Then start investing in a focused manner. You only need to monitor the progress of the investment until the time limit has been set.

Now you understand and understand more about mutual funds. Don’t stop to learn, because the world of investing is always changing. In accordance with the state of the economy at that time.

Don’t be afraid to take risks if you understand the rules of the game. So understand, study, disconnect and monitor. Mutual fund investment can be a smart choice to get profit through the funds you have now.