There are various instruments you can choose when you want to invest. One of them is Mutual Funds. Interestingly, Mutual Fund investing is considered promising today for several reasons.
One of those reasons is diversification, which may not be available in other instruments. You can find more reasons in the following review as considerations for choosing it.
Reasons Mutual Fund Investing Is Promising
Investing is an important step to take for your financial future. With investing, your funds will be put to more productive use, rather than merely for consumptive activities.
This activity certainly requires careful steps so that its goals can be achieved, including when choosing instruments. In today’s environment, Mutual Funds are considered promising for the following reasons:
· Diversification
A hallmark of Mutual Funds is diversification. With diversification, your funds are not allocated to only one instrument. The allocation proportions and instrument selection are adjusted to the specific type of Mutual Fund.
Diversification can provide you with several benefits. For example, the risk of losses when one investment declines can be minimized. On the other hand, gains when other investments rise can be maximized.
Both can make your portfolio more stable. In addition, you will feel more at ease while investing your funds. Of course, you want to experience that, right?
· Managed by Professional Investment Management
All investment funds must be professionally managed. In fact, managing them requires strong expertise. This can help you maximize the returns that are the goal of investing itself.
No need to worry, because Mutual Fund money is managed by reputable Investment Management firms. They are experienced in their fields and can support you in realizing your investment objectives.
In its management, the Investment Manager will determine strategies based on analysis and in-depth evaluation. They will provide you with regular reports so your funds can be monitored more effectively.
· Easy Accessibility
Accessibility in Mutual Fund investing is relatively easy, allowing you to monitor it more conveniently anytime and anywhere. This is even more true if you partner with a provider that offers an app.
Today, app usage has reached various fields, including Mutual Funds. Such features help you monitor your funds using the devices you use daily.
However, please note that not every app partner is equally easy to use. Some may even make you more confused. Therefore, you need thorough research and wise consideration in selecting a partner before choosing.
· Transparency
Mutual Funds are relatively transparent investments. This means the information is sufficiently open so you can monitor performance, composition, and invested funds quite easily at any time.
There are several forms of Mutual Fund transparency you can rely on. One is the prospectus, a document containing comprehensive information about this instrument, including fee structure, policies, and risks.
In addition, there are financial statements that can be accessed regularly to understand the financial condition. You can also access the fund fact sheet, which summarizes monthly Mutual Fund performance along with its portfolio contents.
· More Efficient Taxation
Did you know that taxation for this type of investment is more efficient? This makes the instrument relatively more promising compared to others today.
There are several reasons it is more efficient. First, there is no double taxation on Mutual Fund gains. Taxes are only applied to the underlying assets.
In addition, there is no final income tax (PPh) on capital gains from selling Mutual Fund participation units. Thus, you can obtain net gains from that process without further deductions.
· High Liquidity
The majority of Mutual Fund investments have relatively high liquidity. Thus, you can buy and sell your investments at any time during business hours. Attractive, isn’t it?
With high liquidity, you can obtain funds quickly when urgent needs arise, such as in the event of an emergency. Conversely, you can also promptly invest funds as you wish.
Not only that, the risk of loss can also be minimized. This is because you can promptly redeem the instrument when the market is unstable or when values tend to decline over time.
· Variety
There are many types of Mutual Funds to choose from. You can adjust them to your needs and risk profile. So you can feel freer and more comfortable investing, rather than being stuck with the same options.
For example, you can choose Money Market Mutual Funds. This instrument suits those who want very low risk. However, please note that the potential returns are in line with that level of risk.
If you want to invest with higher return potential while still seeking low risk, there are Fixed Income Mutual Funds to consider. These are suitable for conservative to moderate investor profiles.
· Economies of Scale
The principle of investing is to minimize risk and maximize possible returns. You can achieve this through Mutual Funds, thanks to economies of scale within the instrument.
So how do economies of scale in Mutual Funds work? They reduce ratios by spreading fixed costs across many investors and assets, such as administration, trading, or other professional aspects.
When spread, you bear fewer costs. This can increase potential returns. In other words, the gains obtained from Mutual Fund investing can be greater.
Mutual Fund Investing with DBS Treasures Priority Banking
From the above review, you can see why Mutual Funds are considered promising today. These reasons can help you understand why this instrument can maximize returns and realize your financial aspirations.
These advantages will be felt even more when you choose the right partner, such as DBS Treasures priority banking. With this partner, investment risks can be minimized through diversification. Funds are also managed by leading Investment Managers.
What’s more, you can leverage the DBS digibank Application to carry out various investment activities — buying, selling, switching, and even the SID (Single Investor Identification) registration process.
You will be supported by curated market analysis from a team of financial experts who will communicate it and provide the latest opportunities tailored to your risk profile and portfolio needs, powered by Artificial Intelligence/Machine Learning (AI-ML). These insights are complemented by curated solutions across investment (Grow) and insurance (Protect), enabling you to invest quickly and confidently through your preferred channel.
These advantages may not necessarily be available with other partners. Therefore, start your Mutual Fund investing journey with DBS Treasures priority banking right away! Click here to learn more.
