Money Market Mutual Funds

Advantages of Money Market Mutual Funds & How to Maximise It

Mutual Fund investment is highly attractive for investors because it offers a relatively high profit. One popular investment instrument is the Money Market Mutual Funds investment. If you are interested to start becoming an investor, Money Market Mutual Funds can be the right choice.

However, before you invest in Money Market Mutual Funds, you need to know not only about the benefits. It is very important for investors to also learn about the risks that may occur. It can be said that this money market investment is quite attractive because the risk is not too high. Even so, you still have to study it seriously.

Money Market Mutual Funds are suitable for conservative investors. Conservative investors are the type of investors who prefer to invest with minimal risk. Conservative investors are also looking for safer investments that provide stable returns. In addition, conservative investors also avoid reducing the value of the principal invested.

As a conservative investor, Money Market Mutual Funds can be the right choice. This is because this type of Mutual Fund offers relatively low risk and offers stable profit potential.

Many conservative investors choose Money Market Mutual Funds. When compared to other investment instruments, Money Market Mutual Funds are indeed safer, although it must also be understood that each investment instrument offers its own advantages.

Understanding Money Market Mutual Funds

Based on the official page of the Indonesia Stock Exchange, Money Market Mutual Funds are a type of Mutual Fund investment which portfolio allocation is 100% in money market instruments, including debt securities with maturities of less than 1 year.

The funds placed in this investment are used to maintain capital and liquidity. The investment funds will later be managed by a professional Investment Manager.

Money Market Mutual Funds are attractive to investors, especially those who do not want to experience high market fluctuations or want to invest with relatively low risk.

Advantages of Money Market Mutual Funds

When compared to other investment instruments, money market instruments are indeed quite attractive. Actually, each investment instrument has its own advantages and disadvantages. However, if you are interested in choosing Money Market Mutual Funds, then it is important to know the advantages and risks. Some of the advantages of this Mutual Fund include:

  1. Low Risk
    The first advantage of choosing this investment is that it has a relatively lower risk. You don't need to worry about the risks that might occur because this investment is considered the least risky compared to others.

    The funds managed through Money Market Mutual Funds are invested in money market instruments, including short-term debt securities (under 1 year). This investment has a relatively stable level of fluctuation, so it is less affected when the capital market is volatile. Investors can still get the potential profit from this investment when the capital market fluctuates.

    This kind of investment is suitable for conservative investors. You don't have to worry about experiencing high fluctuations so that the principal invested funds will be relatively maintained. But you also need to know that the lower the investment risk, the potential return provided is also not as high as a high-risk investment.

  2. High Liquidity
    The next advantage of investing in Money Market Mutual Funds is the high liquidity. When the market is unstable, you can still withdraw funds. Money market investments are also different from fixed deposits because you will not be penalised when you make a withdrawal.

    This advantage allows the freedom to withdraw the growing funds should you suddenly need it. However, many investors are patient waiting to withdraw the funds after reaching maximum profit.

  3. Potentially Profitable
    Every investor who invests in Mutual Funds surely targets high profits. If you choose to invest in Money Market Mutual Funds, you can also get the potential profit you seek.

    You can calculate how much profit you get from the amount of funds invested. However, keep in mind that the profits from this investment still depend on the condition of the money market. Before investing, you can estimate how much profit you can get after one year of investing.

    The money market is an investment with a high level of stability. This is good news for investors because they don't have to worry about the risk of loss.

    For optimum profits, it is better to choose long-term investments. The potential profit obtained by investors can reach 4-7% annually, depending on to market conditions.

  4. Flexible Term
    An interesting advantage of this investment is that it has a flexible timeframe. You can invest in the short term or even the long term. When choosing short-term investments, you can withdraw funds whenever you want.

    Of course, the sooner you withdraw the funds, the smaller the potential profit that can be obtained. Therefore, many large investors choose to invest in long-term Money Market Mutual Funds.

  5. Not Subject to Tax
    Choosing Mutual Fund investments also allows you to gain a tax-free investment profit. Profits from Mutual Fund investments are not taxable, so investors can fully enjoy the profits from their investments.

    When compared to other instruments, this advantage makes Money Market Mutual Funds investment quite attractive.

How to Maximise Profit

After knowing that Mutual Fund investment in money market instruments is very attractive and has the potential to be profitable, you will surely feel interested to invest. But every investor needs to learn about the benefits and risks that may occur from their investments.

In addition, it is also important to know how to maximise profits. There are several interesting tips to follow in order to maximise profits:

  1. Choose Long-Term Investment
    Investors who want to gain high profits from this money market investment should choose long-term investments. The potential profit if you choose a long-term investment can reach 7% per year depending on market conditions.

    In addition, the investment period also affects the amount of profit. Even though the profit is still below 8%, investing in the money market gives you peace of mind with a lower risk.

    If you calculate it, the potential profit you can gain in this investment instrument will be higher if you hold instead of withdrawing too quickly. However, if you are unwilling to wait for too long, then you can choose short-term investments. All can be adjusted to the investment period of each investor.

  2. Invest Regularly
    The next tip is to invest regularly. As an investor, you can set aside your monthly income to invest in Money Market Mutual Funds.

    Investing regularly can reduce the risk of fluctuations and allow steady growth without even realising it.

    When investing, you can also take advantage of various attractive facilities such as auto debit facility. This strategy is called Dollar Cost Averaging or regular investments with the same amount, so you don't have to worry about Net Asset Value or NAV price.

    This strategy allows you to consistently invest your funds and simply follow the current price of Mutual Funds in relation to the market conditions.

Invest in Money Market Mutual Funds with DBS Treasures

You need to choose the right partner to invest in Money Market Mutual Funds. You can make this investment through DBS Treasures.

DBS Treasures is a priority banking that supports you to invest in Mutual Funds confidently, comfortably, and safely. You can place a minimum of IDR 500 million investment funds through DBS Treasures.

Many investors choose DBS Treasures as a wealth management partner who will optimise your financial strategy. By investing through DBS Treasures, you can get various benefits such as:

  1. Investments Managed by Experts
    The first advantage that investors gain when choosing DBS Treasures is investment management by a professional Investment Manager. Your invested funds will be managed by an experienced Investment Manager partnered with DBS Treasures.

  2. Investment Guide
    Joining DBS Treasures also allows you to receive useful investment guides. You will gain knowledge on how to make your investments more profitable.
    A team of certified financial experts will communicate important information related to market analysis that has been personalised to your preference and needs. So, you will not feel confused to start your investment.

  3. Diversify to Reduce Risk
    The funds you invest will be spread across various investment instruments. This method is called diversification which serves to manage investment risk.

Together with DBS Treasures, you can enjoy the convenience of transactions, especially in terms of investment. In addition, if you use the digibank by DBS Application, there are many attractive features to optimise your Mutual Fund transactions.

Some of the conveniences of digibank by DBS Application include Mutual Funds analysis, buying Mutual Funds, selling Mutual Funds and even switching.

New investors who do not yet have a Single Investor Identity (SID) will find it easy to register on the same application without having to switch platforms.

You don't have to feel doubt or worry anymore about joining DBS Treasures. The funds you save can be optimised when invested in Money Market Mutual Funds. This investment provides peace of mind because the risks and benefits offered are also quite stable.

The way to invest through DBS Treasures is easy. You can gain complete information about Money Market Mutual Funds investment and how to register as a priority Client at DBS Treasures.

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