Why Mutual Fund Investments Remain Stable
- Defensive Investment in Nature
- Diversification Strategy
- Lower Volatility
- Flexible Investment Periods
5 Benefits of Money Market Mutual Fund Investment
- Guaranteed Liquidity
- Professionally Managed Funds
- Diverse Product Options
- Transparency
- Affordable
Invest in Mutual Funds with DBS Treasures, Your Trusted Partner for Secure Investments
When stock investments are underperforming, many analysts see Money Market Mutual Funds as a safer investment option.
On Tuesday, March 18, 2025, the capital market experienced a trading halt after the Jakarta Composite Index (JCI) plunged 6.12% to 6,076.08—causing panic among investors.
As a result, some investors have been advised to choose their investment instruments more wisely, including reallocating funds to mutual fund products.
But why are Mutual Funds considered more secure during periods of market volatility? Let’s explore the reasons below.
Why Mutual Fund Investments Remain Stable
Mutual Funds are widely favored by investors, especially during times of market turmoil, as they are considered one of the most stable investment instruments.
Moreover, Mutual Funds are suitable for a wide range of investor types—from conservative to aggressive.
Here are several reasons why mutual funds tend to remain relatively stable amid market turbulence:
● Defensive Investment in Nature
One reason mutual funds are considered the right investment instrument during a sluggish stock market is their defensive nature. Certain mutual fund types, such as Money Market Funds, are inherently defensive.
This means they behave differently compared to other investment instruments. The defensive characteristic of mutual funds helps prevent significant value declines and protects returns from more extreme losses.
● Diversification Strategy
Mutual Funds apply an asset diversification strategy, allocating capital across various investment instruments.
The goal of this strategy is to reduce the risk of declining returns.
Diversification allows investors to better manage risk during volatile market conditions. With this strategy in place, Mutual Funds tend to offer more stable return potential.
● Lower Volatility
While the stock market is prone to sharp swings due to instability, mutual funds offer lower volatility by nature.
Volatility refers to how much and how quickly investment values change due to various external factors.
Mutual Funds are considered low-volatility investments, as their movements are generally more stable—even though some fluctuations still occur.
Given that stocks can be highly volatile with frequent ups and downs, it’s understandable that investors may feel uneasy.
This is exactly why Mutual Funds are seen as a more stable and reliable choice during uncertain times.
● Flexible Investment Periods
Another reason mutual funds are a suitable option during volatile market conditions is the flexibility in investment periods.
As you may know, mutual funds offer a variety of timeframes—short-term, medium-term, and long-term—allowing you to choose according to your goals and financial plans.
Short-term mutual funds typically have an investment period of less than one year, such as money market funds.
Medium-term options usually span 1 to 3 years, like fixed income funds.
Meanwhile, long-term investments—such as equity funds or balanced funds—are designed for durations of more than three years.
This flexibility gives investors more control over their investment strategy, making mutual funds adaptable to different financial needs and risk profiles.
5 Benefits of Money Market Mutual Fund Investment
It’s understandable that Mutual Funds are considered more stable compared to many other investment instruments.
If you’re still unsure where to allocate your funds, here are key benefits of Mutual Fund investments that you should know:
● Guaranteed Liquidity
Not only is purchasing Mutual Fund products easy, but the redemption process is also secure and practical.
This means that if you ever need to withdraw your funds, the process won’t be difficult or time-consuming.
Typically, redemption takes around 3–7 stock exchange business days. Aside from being guaranteed, Mutual Fund investments are also highly liquid—you won’t have to wait long to access your funds.
● Professionally Managed Funds
Another benefit of investing in Mutual Funds is that your funds are managed by a team of professional Investment Managers (IMs).
These professionals are qualified and experienced, using solid market research and analysis to manage your investments effectively.
Their main goal is to maximize your investment returns while minimizing potential losses.
That’s why every Investment Manager must be certified—either with a Wakil Manajer Investasi (WMI) license or global credentials such as the Certified Financial Analyst (CFA) designation.
● Diverse Product Options
When choosing Mutual Funds as your investment instrument, you’ll benefit from a wide and flexible range of products.
Each fund is tailored to suit different investor needs—for example, some may only want to invest for the short term.
Even with flexible options, mutual funds can still deliver returns that are reasonable and within an acceptable range of risk.
So, what do you think—are you ready to explore Mutual Fund investments?
● Transparency
Another key benefit is the transparency in how Mutual Funds are managed and how they perform.
As an investor, you can access the prospectus and performance reports provided by the Investment Manager.
You’ll receive essential information such as service fees, net asset value (NAV), fund manager details, and more—usually updated at regular intervals.
● Affordable
Finally, Mutual Funds are known for their affordable fees.
Because mutual funds pool money from many investors collectively, the service fees are shared, making them more economical.
In fact, some mutual fund platforms even offer zero service fees for certain products—allowing you to focus on maximizing your returns without worrying about high costs.
Invest in Mutual Funds with DBS Treasures, Your Trusted Partner for Secure Investments
That concludes our overview of why Mutual Funds remain a stable investment instrument amidst capital market volatility.
To choose the right Mutual Fund product, it’s important to partner with a trusted bank or investment provider.
One such option is the Mutual Fund products offered by DBS Treasures priority banking, your trusted partner. One of the key advantages you’ll enjoy is portfolio diversification—professionally managed by experienced Investment Managers to reduce risk.
The DBS Treasures expert team also proactively delivers insights to help you analyze and navigate market opportunities with greater ease.
Another strength lies in the high-quality Investment Managers selected to manage your investments. And for your convenience, all transactions—from buying, selling, and switching to SID (Single Investor Identification) registration—can be done easily through the digibank by DBS Application.
You’ll also benefit from curated market insights delivered by our financial experts and tailored to your risk profile and portfolio goals—powered by Artificial Intelligence and Machine Learning (AI-ML). These insights are complemented by curated solutions in investment (Grow) and insurance (Protect), so you can invest quickly and confidently through your preferred channels.
So, if you're looking to reduce risk and stay secure amid recent market uncertainties, mutual fund products from DBS Treasures can be your go-to investment solution.
Choose Money Market Mutual Funds from DBS Treasures, your trusted partner, and unlock more optimal return potential.
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