Retirement preparation must be done as early as possible to maximize life with financial freedom. Equity Mutual Funds can be an investment option that you can choose to generate optimal profit potential in the long term if you know how to do it.
But what are Equity Mutual Funds? In Equity Mutual Funds investment, the funds are allocated into stock instruments. Usually, shares are bought on the stock exchange when the price goes down and sold when the price goes up.
Equity Mutual Funds are considered to have the opportunity to provide relatively high returns for investors despite the high risk they have.
Benefits of Setting Up a Retirement Fund Early
Retirement is the time when you stop working, usually when you are at a certain age. In order to live at ease without debt and other financial demands, you must prepare a retirement fund early on.
In addition, setting up retirement savings early has several benefits that will help later. The following are 5 benefits of setting up retirement savings:
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Can be Used for Business Capital
Setting up a retirement fund early can help you to open a new business. Of course, the profits from this business can be used to raise income before entering old age.
For some people, going through the old days without working at all will be boring. Therefore, with a ret fund you can open a new business as you wish.
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Can be Used as a Provision in Old Age
If you are not interested in opening a business, the retirement fund is also useful to provide what you need. But make sure that the retirement budget is carefully managed.
The sooner you gather retirement funds, the more retirement budget you will have. Later you will no longer have to worry about running out of money and just enjoy your retirement in peace.
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Can be Used as an Emergency Fund
The next benefit of collecting retirement money is as an emergency fund. This retirement savings can be used anytime when you need it. But before using the budget, you should use other reserve funds.
Although it can be used as an emergency fund, try not to use retirement savings which reduce the amount, unless you can replace it.
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Can Provide Peace of Mind
Having a retirement fund from an early age will give you a peace of mind because you don't have to worry about living your old age without income from your current job. Even so, you should continue to prepare for savings as diligently as possible.
You have to make a special budget to save your retirement fund from the income you get every month. Gather these funds regularly and do not use these funds for other needs if you still have money in savings.
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Can Raise Huge Savings
If you regularly collect money for retirement from a young age, then the resulting savings will increase. You will feel the benefits later after entering retirement. You can live with financial freedom without having to think about financial problems anymore.
This is why it is highly recommended to immediately prepare savings as funds for old age as early as possible.
It turns out that preparing money for old age requires strong determination and strategy to reach the desired budget. Equity Mutual Funds are the right choice that you can use to prepare funds in old age.
But before that, you must know how to prepare a retirement fund by investing in Equity Mutual Funds so that there are no losses in the process as follows.
Tips for Preparing Retirement Fund, Equity Mutual Funds Investment Can Be an Option
You can’t invest in Equity Mutual Funds with random techniques. You need the right tricks and plans to gain a satisfactory potential return. If you invest without the right strategy, you may face losses in the future.
Therefore, read through our explanation on the 7 tips for investing in Equity Mutual Funds to prepare for retirement funds.
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Determining Retirement Age
Before choosing the desired Equity Mutual Fund product, make sure you have determined when to retire from work. So that you have an idea of the time span to invest.
Not only that, you also need to know that the longer you start investing, the more potential you have to gain a bigger profit. So first determine at what age you will start retiring, then determine the equity product to use.
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Calculating the Cost of Living in Retirement
The next tip that you should not miss is to calculate how much living expenses will be used when you retire. This calculation must be adjusted to the daily needs which include the funds for your children and grandchildren, the cost of doctors or other health facilities.
Starting from now, you need to determine the lifestyle for your old age. The more comfortable the lifestyle you aspire, the higher the costs that must be fulfilled.
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Start Investing As Early As Possible
As your goal is to prepare a retirement fund, then you must invest as early as possible for maximum results. Not only that, the sooner you invest, the faster the results can be reaped.
Don't wait until you're old enough to invest because this step is open to everyone. What's more, Equity Mutual Funds are a type of long-term investment so it will be very helpful if you start now.
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Understand Equity Mutual Fund Products
Before buying Equity Mutual Funds product, you should read the prospectus and the fund factsheet. This can be effective in determining which products have the potential to profit. A prospectus and a fund factsheet are the keys to the success of your investment.
By looking at the track record of the Equity Mutual Fund products, it can also serve to estimate the future investment performance so that you can prepare the right strategy to overcome the risks that may arise.
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Know Your Financial Ability
To reach the retirement age target, you must know how much deposit you need to make. Because by knowing how much it costs to live, you can calculate and determine how much money needs to be allocated in Equity Mutual Funds.
Ask yourself about your financial ability, the lifestyle you want, and the amount of funds required. Of course, the level of lifestyle comfort will determine the amount of funds to invest.
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Prepare a Well-Planned Strategy
From what we know about Equity Mutual Funds, you can conclude that this type of investment carries several risks that are quite high. This risk can arise if you are not careful when making transactions.
Avoid these losses by preparing the right strategy. You can use diversification techniques so that later these funds will be channelled to various other instruments besides Equity Mutual Funds to minimize the risk of loss.
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Invest Consistently
As an investor you must not be hasty. Try to invest with funds according to your ability, but do it regularly and with discipline. This is because you are investing in Equity Mutual Funds that have relatively good long-term performance, so patience is required.
Investing gradually will not lead to potentially lower return. As long as you invest consistently, the potential profit you can gain is stable for the long term.
While investing in Equity Mutual Funds, don't forget to continue to monitor and evaluate regularly. Don't be afraid to make decisions and if there are any problems, immediately consult your wealth management partner.
You can be guided by DBS Treasures as a wealth management partner. DBS Treasures provides various conveniences as discussed below.
Prepare for Retirement Fund with DBS Treasures
DBS Treasures is a priority banking with a minimum Asset Under Management of IDR 500 million that will support you in preparing for your retirement according to your aspirations. DBS Treasures is the right choice to invest with the following conveniences.
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Professionally Managed
DBS Treasures partners with professional Investment Managers so that investors can get stable returns potential. Later the Investment Managers will play a major role in optimizing the performance of the Equity Mutual Fund product that you purchase.
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Guided by a Reliable Team of Financial Experts
Not only Investment Managers, DBS Treasures also has a team of financial experts who will proactively communicate the analysis of latest market conditions and opportunities that suit your aspirations, empowering you to make confident decisions.
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Asset Diversification
When you invest in Equity Mutual Funds through DBS Treasures, you will not have to worry about the risk of possible losses. This is because DBS Treasures uses the investment diversification method to minimize the risks that arise.
The digibank by DBS Application makes it easy for you to carry out transactions such as buying and selling, switching, and analysing mutual funds supported by data from Infovesta.
Even for investors who do not have an SID or Single Investor Identification issued directly by the Indonesian Central Securities Depository, you can make one on the digibank by DBS Application.
Wait no more, now is the right time to start investing in Equity Mutual Funds through DBS Treasures. Find out the right Equity Mutual Funds product with DBS Treasures to gain potential returns according to your retirement aspirations.
