Investment in Mutual Funds can provide relatively high profits. However, this profit value may not always match your expectations. There are times when the growth in profit value is very slow.
It is important to know that conditions like this are very normal in the world of investment. The profit value from your investment instruments cannot always increase rapidly as desired. So, what should be done in this situation?
How Can Investment Profits be Slow?
It turns out that there are many factors that can make your investment profits slow and do not progress as desired. You should first understand what the cause is so you can make the right move.
The value of profit in the world of investment can be influenced by many things. Following are several reasons why your Mutual Fund profits are slow according to the idntimes page:
- Fluctuations in Economic Conditions
The economic situation in our country is certainly the main thing that can slow the growth of your investment profits. This is a very normal occurrence considering that the economy cannot always be stable.
It is not only the domestic economy that will influence investment performance. International economic conditions will also have a significant influence.
That's why you should continue to update and understand the latest economic conditions. This could be an effort to consider investment strategies in the future.
- Demand and Supply Status
The next thing that can slow investment performance is the status of supply and demand. These two things will have a direct influence on the profit value of your investment.
When the demand is high, asset prices will also increase. The opposite condition can occur, when supply is high the asset value will actually decrease.
When is demand high? This condition can occur when many investors want to buy the same asset. Meanwhile, the supply could increase if many investors sell it.
In this case you also have to stay updated with the information. It is very important to know the current status of supply and demand. The goal is that you are aware of the instrument’s performance.
- Company Fundamentals
The profits from this investment instrument will also be influenced by the company's fundamentals. Especially for investments focusing on stock issuers. So it is very important for you to choose companies with large capitalization.
Good company fundamentals will have a good profit increase potential. However, this condition is not always stable and can change due to various factors.
In conclusion, there are many things that can influence your investment performance. If investment profits are slow and do not increase as expected, then you don't need to panic.
This condition is very common and your patience as an investor will be tested. There is no need to take rash decisions because it is possible that the value of this profit will increase rapidly and match your expectations.
What Should You Do?
Actually, there are many things you can do when investment profit does not grow as expected or is slow. You should know these so you don't take the wrong step and end up facing losses.
When investment profits are growing too slowly and don't even show progress, stay calm. According to OJK, you can do the following things:
- Examine Your Financial Goals
The first thing you should do is revisit your financial goals. This is often forgotten by investors even though it is a very important thing to do.
Before starting to invest, you must determine the goals or targets you want to achieve first. From here you can determine the investment period, both short and long term.
When the investment value does not show significant growth, there is no need to worry. Especially if your investment goal is still quite far away and there is still plenty of time to achieve it.
Just relax and wait until there are positive signs from the instrument you are using. Investment value is always fluctuating and can go up and down over a certain period.
- Add Investment Value
If your investment goal is still quite long, then there is no harm in increasing the investment value. In fact, this could be an opportunity to increase the assets you have invested.
But in this case, you have to be very careful. Make sure that the product you choose is the right one and can show significant improvements in the future.
This increase in investment value can be done with various considerations. Of course, you also have to be able to consider many factors, including the fundamentals of the companies involved.
- Switch to Another Product
You can also switch or move to another investment product. This step can be taken when it turns out that investment funds must be used in the short term, for example less than one year.
This means that in conditions like this you don't have enough time to wait for the investment value to increase again. You need to take other steps to avoid bigger losses.
Move your assets to products that have better potential and are performing well. This step will be very good for you to optimize the remaining time you have.
- Do a Cut Loss
The final step you can take is cut loss. This could be an option if you don't want to face even bigger losses. Even though you do have to take some loss.
Usually this step is recommended if investment funds must be withdrawn in less than a month. There isn't much time left so you need to take action immediately.
Cut loss is done by selling investments at a lower price. You will indeed face losses, but the value could be smaller than when you try to maintain the investment.
Invest Safely with Trusted Partners
Apart from understanding this strategy, you also have to choose the right partner to invest in. DBS Treasures will be the right choice for you if you want to gain optimal Mutual Fund benefits.
Your investment funds will be directly managed by an experienced Investment Manager. You can also use the digibank by DBS Application to register and buy and sell investment products easily.
Be supported by curated market analysis from a team of financial experts who will communicate it. Seize the latest opportunities that have been tailored to your risk profile and portfolio needs, driven by Artificial Intelligence/Machine Learning (AI-ML). This insight is equipped with curated solutions related to investment (Grow) and insurance (Protect), so you can quickly and confidently invest through your preferred media.
Mutual Fund investments can bring optimal profits if done with the right strategy at DBS Treasures. You can access comprehensive information directly here.
