Potentials of Fixed Income Mutual Funds: Safe and Stable?
Largest AUM Returns Provided Regularly Stable Fluctuations Tax-Free High Liquidity Wise Steps in Mutual Fund Investment
Have Clear Investment Goals Use Legal and Secure Platforms Check Historical Performance Who Is Suitable for Investing in Mutual Funds?
Conservative Investors Moderate Investors Start Fixed Income Mutual Fund Investments Safely with DBS Treasures
Fixed Income Mutual Fund
This type of investment tends to carry low risk and offers stable returns. It is suitable for those who want medium-term investments with lower risk levels.
Curious about the potentials offered by Fixed Income Mutual Funds? Let’s review them in full here!
Potentials of Fixed Income Mutual Funds: Safe and Stable?
The investment management sector recorded positive growth as of June 2025. Total AUM of the investment industry rose 0.87% ytd to Rp844.69 trillion, while NAV for Mutual Funds alone grew 2.18% ytd to Rp510.15 trillion.
Of this total, the largest share came from Fixed Income Mutual Funds, with managed funds reaching Rp167 trillion. This dominant position confirms that this instrument remains the top choice for investors amid global economic uncertainty.
Here are five potentials offered by Fixed Income Mutual Funds:
Fixed Income Mutual Funds hold the largest AUM compared to other investment instruments. According to data from the Indonesian Central Securities Depository (KSEI), as of June 2025, the AUM of this instrument reached Rp167 trillion.
The large AUM value indicates strong investor interest in this product. It proves that Fixed Income Mutual Funds can be one of the best investment choices at present.
Returns Provided Regularly Fixed Income Mutual Funds generally allocate their managed funds to instruments that can generate regular and stable income. These instruments provide regular dividends, suitable for those needing additional income.
Investment Managers, as the managers of investor funds, typically allocate around 80% into Fixed Income instruments such as bonds or debt securities.
With the routine returns offered, Fixed Income Mutual Funds can serve as a source of passive income and reserve funds.
In managing investor funds, Investment Managers channel most allocations to instruments with stable fluctuations such as bonds or debt securities. This is suitable for investors with moderate risk profiles.
Stable fluctuations allow you to earn consistent returns. This approach also helps avoid large losses that could result from investing in high-risk instruments.
Returns or profits from Fixed Income Mutual Fund investments are fully distributed to investors without tax deductions. This exemption applies because the instrument is not subject to taxable income.
With this advantage, investors can potentially enjoy greater net profits compared to other instruments. For example, deposit interest is subject to 20% income tax.
Another potential of this instrument is its high liquidity. This means investors can easily redeem their funds at any time.
In addition, the redemption process does not take long. Typically, it requires only 2–3 working days from request submission until the funds are credited to the account.
Wise Steps in Mutual Fund Investment
Like other instruments, Mutual Fund investments also carry risks that investors must be aware of. To gain maximum returns and avoid losses, wise steps are needed.
Here are some wise steps in investing that you should know:
Have Clear Investment Goals When investing, you must have clear goals—whether for education funds, emergency funds, wedding preparations, home renovation costs, or simply to increase income.
With clear goals, you can choose the right instrument and set the right investment period.
Use Legal and Secure Platforms To start investing, choose a safe and legal platform and Investment Manager. Legal platforms usually provide features to help you monitor and manage your investment funds.
By choosing a legal platform, you also minimize the risk of financial losses caused by fraud.
Check Historical Performance To know how your investment is managed, always review historical performance regularly. This provides insight into how Mutual Funds have been managed over time.
Historical performance shows how your money has worked in the past, the potential profits you can expect, and helps you plan future investment strategies.
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Who Is Suitable for Investing in Mutual Funds?
Fixed Income Mutual Funds are suitable for conservative and moderate investors. Both types tend to prefer safe and stable instruments.
Conservative investors prioritize capital safety and avoid high risks. They prefer smaller profits rather than risking capital loss.
Their investment goals are usually long-term, such as retirement funds or children’s education.
Moderate investors seek balance between safety and profit potential. They are moderately tolerant of risks and willing to take higher risks for better returns.
Their financial goals are typically medium-term, such as buying a car or a house.
Fixed Income Mutual Funds suit both types because they carry lower risks while still offering attractive returns.
They are also effective for portfolio diversification—helping avoid concentration risks while providing opportunities for greater profit.
Start Fixed Income Mutual Fund Investments Safely with DBS Treasures
Fixed Income Mutual Funds
With these potentials, there is no reason to delay investing in Fixed Income Mutual Funds.
Investing with DBS Treasures priority banking as your trusted partner offers many advantages. These include higher returns, lower risk levels, and diversification by professional Investment Managers to reduce risks.
You will also be supported by curated market analysis from financial experts, who communicate timely opportunities tailored to your risk profile and portfolio needs, powered by Artificial Intelligence/Machine Learning (AI-ML). These insights are complemented with curated solutions in both investment (Grow) and insurance (Protect), enabling you to invest quickly and confidently through your preferred channels.
Enjoy the convenience of transactions through the DBS digibank Application—for buying, selling, switching, and even registering a Single Investor Identification (SID) with simple procedures.
This service can also be connected with various Mutual Fund products from different Investment Managers or categories.
With DBS Treasures priority banking, investing becomes easier and safer. Don’t wait any longer—start your Mutual Fund investment now by clicking here
