6 Mutual Fund Myths That Should Be Left Behind
- Investing Requires a Large Capital
- All Mutual Funds Have the Same Fees
- Management Takes Too Much Time
- Investing Carries High Risk
- Complicated Investment Procedures
- Investing is Unsafe
Tips to Avoid Mutual Fund Investment Myths
- Choose a Trusted Investment Product
- Research the Performance of Investment Managers
- Start Investing Now
Choose Investment Products from DBS Treasures and Take the Step to Invest!
It would be wise to use excess funds for investment purposes, such as investing in mutual funds. However, in reality, many people are hesitant or reluctant to invest due to common myths circulating in society. These myths should be left behind.
Investing offers financial benefits in both the short and long term. So, what are the myths you need to let go of? Read the full discussion below and let’s explore them together!
6 Mutual Fund Myths That Should Be Left Behind
The myths circulating in society often prevent people from setting aside money for investment. Therefore, it is essential to understand and debunk mutual fund investment myths, allowing you to open your mind to smart investing. Here’s a breakdown of some common misconceptions:
- Investing Requires a Large Capital
The first myth is that investing in mutual funds requires a large amount of capital. This is simply not true—the reality is quite the opposite. Mutual fund investments are relatively affordable and accessible to everyone. This affordability makes mutual funds a popular choice among both young and experienced investors as their first investment instrument.
Now that you know the truth, there is no reason to believe that mutual funds require a significant initial investment. You can start by allocating a portion of your monthly savings to invest in the right products
- All Mutual Funds Have the Same Fees
The myth that all mutual fund investment products have the same fees should be disregarded. In reality, the costs vary depending on the type of investment you choose. These fees may include management fees, administrative costs, and other charges.
Certain fees can also impact your returns, so it is crucial to understand them before selecting a product. For this reason, always review the additional costs involved in managing your investment funds before committing to an investment.
- Management Takes Too Much Time
If you believe that investing in mutual funds requires too much of your time, that is simply a misconception. In reality, investment fund management is handled by professionals known as Investment Managers (IMs).
You do not need to spend your time constantly monitoring and managing your investment funds. Technically, all the money you invest is managed by the Investment Manager. You can sit back and relax while occasionally checking your investment performance online.
- Investing Carries High Risk
The myth that mutual fund investments are highly risky is something you may have heard before, but it is time to leave this misconception behind. The truth is that every investment instrument carries its own level of risk.
However, experts state that mutual funds are generally considered low-risk investments. One of the least risky mutual fund products is the Money Market Fund.
The low-risk nature of mutual funds is also due to the diversification strategy implemented by Investment Managers. With lower risk, you can leverage mutual fund investments to optimize your returns.
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- Complicated Investment Procedures
The belief that mutual fund investments have complex procedures is nothing more than a myth. In reality, the investment process today is very simple. In some cases, all you need to do is prepare personal documents such as an identification card (KTP) and a bank account.
Additionally, you no longer need to visit a bank or investment provider in person, as everything can now be done online. This makes investing more convenient, allowing you to invest anytime and anywhere.
- Investing is Unsafe
The final myth that needs to be debunked is the idea that mutual fund investments are unsafe. In reality, many mutual fund products are officially registered, legal, and regulated by the Financial Services Authority (OJK).
If an investment product is not officially registered, it is usually easy to spot the difference. You can verify whether a product is legitimate by checking the certification of the Investment Manager overseeing it.
Apart from OJK, there is also PT Penyelenggara Program Perlindungan Investor Efek Indonesia, an institution that provides protection and guarantees for your investments. Therefore, if you choose an investment product that is registered with these regulatory bodies, there is no need to worry about its security.
Tips to Avoid Mutual Fund Investment Myths
The myths listed above should be left behind, allowing you to invest with confidence. To eliminate these investment misconceptions, here are some practical tips you can apply:
- Choose a Trusted Investment Product
To avoid falling for Mutual Fund investment myths, the first important step is selecting a trusted investment product. How can you do this? Conduct thorough research before making an investment decision. You can also look for customer testimonials or feedback from investment partners.
Choose investment products that are legally registered and regulated by the Financial Services Authority (OJK). Opting for reputable investment companies can also help minimize the risk of fraud. Once you have completed your research, you can invest with confidence.
- Research the Performance of Investment Managers
In addition to verifying the legitimacy of the company offering the investment product, you should also assess the performance of the Investment Manager (IM). The success of a mutual fund investment is closely tied to the expertise of the Investment Manager handling your funds.
Make sure the Investment Manager you choose holds official certifications as proof of their professionalism. It is also advisable to ask about the fund management process to gain a better understanding of how your investment is being handled.
- Start Investing Now
The final tip is to start investing today! If you continue to hesitate due to misleading myths, you may never take the first step toward investing. The longer you delay, the longer it will take to achieve financial growth and stability.
So, don’t let fear hold you back—start investing now! Choose a reliable and trusted investment product that meets the criteria outlined above.
Choose an Investment Product and Take the Step to Invest!
That concludes the discussion on investment myths you should leave behind. The benefits of mutual fund investments are within reach, and there’s no reason to hesitate any longer. Choose a trusted mutual fund product, such as those offered by DBS Treasures priority banking, and enjoy its advantages.
First, reliable Investment Managers (IMs) ensure the optimal performance of your investment products. Second, diversification strategies help minimize investment risks. Third, you will receive proactive insights from expert analysts to keep you updated on money markets and emerging opportunities.
The convenience of online investing is further supported by the digibank by DBS Application, allowing you to buy and sell investments, switch funds, and register your Single Investor Identification (SID) with ease. This application simplifies the entire investment process.
Additionally, you will receive curated market analysis from financial experts, tailored to your risk profile and portfolio needs, powered by Artificial Intelligence/Machine Learning (AI-ML). These insights are complemented by personalized solutions for investment (Grow) and insurance (Protect), enabling you to invest with confidence through your preferred channels.
Take advantage of Mutual Fund investment opportunities and start your journey with DBS Treasures priority banking as your trusted wealth partner today! If you’d like to learn more about investing or consult with our expert team, simply click here!
