Considering Investing in Fixed Income Mutual Funds?
Nowadays, saving your money isn’t enough. You can save while gain more funds by investing them on Fixed Income Mutual Funds. Where by allocating your funds on a regular basis, you can get the potential profits every year.
Fixed Income Mutual Funds is the right choice to help fulfill your financial goals. 80% of mutual funds will be invested and managed in debt securities such as Bonds.
To understand Fixed Income Mutual Fund products, it helps to first review what are the advantages and disadvantages of this type of Mutual Fund.
Advantages of investing in Fixed Income Mutual Funds
These are some of the benefits that can be enjoyed when investing in Fixed Income Mutual Funds, namely:
1. Yield of Capital Gain
Capital Gain is the profit from the difference in the price of an investment product when it is sold minus the price of the product purchased.
In Fixed Income Mutual Funds, this price is represented by Net Asset Value (NAV). When an investor sells a Mutual Fund with a NAV that is higher than the NAV at the time of purchase, the investor will receive a profit in the form of Capital Gain.
2. Profits from Dividends
Dividends are the distribution of investment results to investors and investment fund managers on a regular basis. This can only be obtained by investing in Fixed Income Mutual Funds.
3. Withdraw Anytime
The funds you invest can be withdrawn at any time when it is needed. If you are in an emergency situation that requires funds, you can withdraw them during the stock day. All at at once or partially as needed.
This mutual fund investment is perfect for moderate conservative investors. Where the investment objectives are medium and long-term investments. In addition, this Fixed Income Mutual Fund investment has a relatively stable and well-maintained fluctuations.
4. Safe and tax free
This Fixed Income Mutual Fund investment provides another advantage, namely that it is not subject to tax. Mutual Fund investment is also relatively safe, because it is regulated and supervised by the Financial Services Authority.
5. Invest Efficiently
Investing in Fixed Income Mutual Funds is one of the most efficient investment options. Where the management of investment funds from investors is managed by professional Investment Managers who have a track record of market analysis. This Investment Manager will manage the funds you invest in Fixed Income Mutual Funds.
After you deposit funds and choose a Fixed Income Mutual Fund product the Investment Manager will manage your investment and the performance of the product can be monitored in investment reports that are routinely issued.
This will greatly help investors because investors do not need to observe market movements at any time and can carry out their normal activities.
These 3 Factors Need to Be Considered Before Choosing Fixed Income Mutual Fund Products
Fixed Income Mutual Fund investments are quite popular due to its pretty good performance. Quoted from pluang.com, the performance of Fixed Income Mutual Funds is supported by the trend of low interest rates that are still maintained by Bank Indonesia. In July 2022, Bank Indonesia still maintained the benchmark BI 7 Days Reverse Repo Rate at 3.5%.
Despite that, you will have to choose the product that you want to purchase carefully. Here are some things that you should consider before choosing a Fixed Income Mutual Fund product to invest in:
1. Inspect your potential Investment Manager
Choosing a proper Investment Manager is one of the most important things that you need to consider before you choose a product. The profits and losses you experience depends on the performance of the Investment Manager you picked. Inspect the performance and track record of the Investment Manager over the past few years. Even though it's not 100% accurate in describing the condition of your investment funds in the future, at least you have insight on how their performance has been so far.
Start by checking whether the Investment Manager is registered with the Financial Services Authority or not. In addition, you can also examine the Investment Manager's preferred news sites and social media for more information.
You can also check the NAV (Net Asset Value) status of your chosen Investment Manager. In general, if your Investment Manager is a trusted Investment Manager, then its NAV value will be greater than other similar products.
The Investment Manager's managed funds are also an important factor. Investment managers who have a good reputation usually have large enough managed funds.
2. Seeing Trends in Returns and Underlying Assets
Fixed Income Mutual Funds have relatively more stable returns compared to other types of Mutual Funds because of an underlying asset, namely debt securities which have relatively lower volatility than other stock investments.
However, the underlying assets for Fixed Income Mutual Funds are not always the same. So, make sure to check the product of your desired investment.
In addition, examine the Bonds and letters from the institutions that issued them. If it’s a corporate bond, then you can choose a bond mutual fund with a BBB or A rating. Paying attention to ratings is important to determine which mutual fund product you will invest.
3. Check for Additional Fees
Mutual Fund investment costs are sometimes in the form of managing funds invested and issued by your Investment Manager.
The value sometimes decreases and if it keeps on decreasing then the yield you will enjoy will also decrease.
Therefore, it is important to make sure how many additional costs are needed before making an investment so you can steer away from losses. Also pay attention to whether these costs can be incurred.
Mutual Fund Investment in DBS Treasures Has Many Benefits
DBS Treasures priority banking offers many advantages when it comes to investing, Including Fixed Income Mutual Funds such as:
1. Your Investments Managed by Professionals
Your assets will be managed by a professional and reliable Investment Manager partnered with DBS Treasures. Any funds you invest in Fixed Income Mutual Funds or other Mutual Funds will be managed optimally by Investment Manager. As explained earlier, the role of the Investment Manager is very important in investing, so this will greatly facilitate you in investing
2. Investment Guidance
Not only are your products and assets optimally managed, you can also get insightful investment guidance’s tailored to your aspirations by financial experts. You will receive constant support by the team. So, you can confidently capture the momentum to buy, sell and cash out Mutual Funds.
3. Minimize Risks with Diversification
With diversifying, you can minimize your investment risks and spread your dividends to other products.
4. Easier Transactions
Why DBS Treasures? Because DBS Treasures provides a simpler way to invests without having to go to the bank. With the digibank Application you can invests with convenience on the palm of your hands.
For those who are new and are still beginners in investing, you can register for a Single Investor Identification at the Indonesian Central Securities Depository which can also be accessed directly in digibank Application. Flexible, easy to use and certainly safe because it can sell, buy and switch and make other transactions.
That's all the information about Fixed Income Mutual Funds with DBS Treasures, through the digibank by DBS Application that can provide more benefits and advantages for you.
