Have you been only placing your funds in savings? When in fact, you can make your money work for you by placing it in several investment instruments such as Mutual Funds. Especially if you decide to choose Fixed Income Mutual Funds that can give you a high potential profit percentage per year.
Without investing early, you miss the opportunity to earn higher profits. Especially if you have several goals that require quite a lot of funds in the future.
For example, if you want to buy a house, prepare for a retirement fund or plan an education fund. In order to fulfil this need, Fixed Income Mutual Funds can be your investment option.
Those of you who plan to choose Mutual Funds to invest must understand very well the potential benefits offered by Fixed Income Mutual Fund. Including the risk factors that must be learned before you make the right decision.
Fixed Income Mutual Funds Benefits and Risks By definition, Fixed Income Mutual Funds are types of Mutual Funds where a minimum of 80% of managed funds are allocated to debt securities investment instruments or better known as bonds.
The name of Fixed Income Mutual Funds is due to the type of portfolio allocation that focuses on investment instruments in bonds or debt securities which characteristically provide fixed income.
Just like other Mutual Fund investments, Fixed Income Mutual Funds have potential benefits and risks that investors must learn. For Fixed Income Mutual Funds there are a wealth of benefits that can be obtained. What are these benefits?
Yield Opportunities
Fixed Income Mutual Funds themselves provide relatively attractive yield potential. However, investors also need to understand that Fixed Income Mutual Funds are classified as an investment with moderate risk.
Profit from Capital Gain and Dividend The potential benefits offered are not only derived from yields or interest but also from capital gain and dividend (sharing of investment returns). Capital gain is the profit obtained by investors when selling the Mutual Fund units.
In Fixed Income Mutual Funds, like Mutual Funds in general, you can resell your investment units on every trading day. This sale has the possibility of obtaining a capital gain if the unit price at the time of resale is higher than the unit price when buying the Mutual Fund.
In addition to capital gain, you can also benefit from dividend. Dividend is a regular distribution of investment returns to investors from the results of Fixed Income Mutual Fund management. However, not all Fixed Income Mutual Fund products have the investment return sharing feature.
More Efficient Investment Fixed Income Mutual Funds management will be carried out directly by a professional Investment Manager in accordance with the asset management company that issues your chosen Fixed Income Mutual Funds. With this professional Investment Manager, your investment time will be more efficient.
Not Subject to Tax Choosing a Mutual Fund investment also allows you to get a tax-free investment profit. Profits from Mutual Fund investments are not taxable, so investors can fully enjoy the profits from their investments.
Withdrawal Available Anytime Another advantage of Fixed Income Mutual Funds is that you can withdraw the funds whenever you need them. For example, you suddenly need emergency funds, you can immediately withdraw the funds on any stock day.
Fixed Income Mutual Funds are perfect for investors with moderate conservative profiles. Especially if you have medium term goals, because optimal returns will generally be obtained after 1 to 3 years.Fixed Income Mutual Funds Investment Risk After learning the benefits of Fixed Income Mutual Funds, you must also pay attention to what risk factors you must face. These factors or risks are related to price fluctuations that might happen.
Fluctuating Net Asset Value (NAV) NAV fluctuations are the biggest risk that every investor must face. The rise and fall of NAV can be caused by several things. The first is the movement of the benchmark interest rate from Bank Indonesia. The second is the rating result of the debt securities.
Liquidity Risk The next risk is liquidity problems due to investment managers having difficulty providing cash. You may not be able to withdraw funds immediately, if other investors also withdraw a large sum of funds at the same time.
No Guarantee from LPS Fixed Income Mutual Funds are not banking products, therefore there is no guarantee from the Indonesia Deposit Insurance Corporation or LPS. You also need the courage to take the risk of loss when the NAV drops or there are political and economic problems going on.
Want to Invest in Fixed Income Mutual Funds? Choose DBS Treasures Fully understanding the benefits and risks of investing will make it easier for you to invest. Especially if you invest with DBS Treasures which offers a wealth of Mutual Fund products.
You can immediately join as a priority Client at DBS Treasures and experience some of the benefits firsthand. Here are the benefits that you can gain immediately.
Assets Managed Directly by Professionals
Whether it's Fixed Income Mutual Fund investments or other types of Mutual Funds, the professional Investment Managers partnered with DBS Treasures will work efficiently.
Broaden Your Insights in Investing
So if you want to sell, buy, or even switch Fixed Income Mutual Fund products, a team of financial experts will support you by providing an overview of the latest opportunities. This will broaden your horizons in investing when you don’t have enough free time to study on your own.
Leveraging Diversification to Reduce Risk
For Fixed Income Mutual Funds, most of the funds will be invested in securities and bonds. It is different if the investment is only on one type of investment instrument. The risk of loss is quite high when the investment fails.
Easier Transaction Access
As long as you access this application, you can find Mutual Fund products and make transactions right away. You can start by studying Mutual Fund products that have been analysed by Infovesta.
Other conveniences provided by this application are the seamless transactions of selling, buying, and even switching. Plus, those who are just starting to invest or are novice investors who need to register for Single Investor Identity at the Indonesian Central Securities Depository (KSEI) can also do so through this application. Without having to access many platforms or coming in person to take care of your investments. DBS Treasures is the right solution for those of you who don't have much time but want to invest with flexible funds.
There is also no need to doubt about security, because Mutual Funds are products that have been regulated by the government. Not only that but also registered and supervised by OJK (Financial Services Authority).Mutual Funds available at DBS Treasures provides transparent performance report, if you want to compare one product with other Mutual Fund products. Likewise, transaction access is fully supported by a team of experienced and professional financial experts.
Accuracy in investing begins with understanding the investment instrument and then the selected product. Choosing the wrong instrument will have a big impact on losses.
Wise investors can choose which investments are profitable according to their own needs. Therefore, start by figuring out what your goal is to invest.
If your goal is to buy a car, house, or something else that can be reached in a maximum of three years, then Fixed Income Mutual Funds are the right choice.
The risk profile is moderate, and the potential return provided is sufficient for you to achieve these goals. Especially with DBS Treasures, all Mutual Fund transaction activities are much easier.
You can become a DBS Treasures priority banking customer now. All wealth management strategies will be personalised to your preferences and needs.
The expert team from DBS Treasures proactively provide analyses and communicate the right opportunities which include resilient products. You can also review the product prospectus to make it easier to compare which one to buy.
You can make accurate investment decisions at the right time more confidently when you join DBS Treasures.
