For Money Market Mutual Fund investors, it is necessary to understand the common terms of investing. One of them is the term switching which needs to be understood as well as its benefits for investors.
Money Market Mutual Funds are quite attractive for investors. Especially for entrepreneurs who want to use their cold money to invest easily.
Ease of investing in Money Market Mutual Funds comes from the investment management services by professional Investment Managers. So that entrepreneurs can invest while running their businesses without worrying about managing their investment assets to make a profit.
In addition, investors can also choose a wide selection of preferred investment products. You can choose investment products that suit your needs and aspirations or adjust to your investment goals.
In addition to buying and selling investment assets, in Money Market Mutual Funds you can also find another transaction called switching. Below is a brief explanation on the term switching in Mutual Fund investment.
Definition of Switching in Money Market Mutual Funds Investment
Switching in Mutual Funds including Money Market Mutual Funds means transferring the balance placed in one Mutual Funds product to another. In other words, you can make a transfer if the Mutual Funds asset you want to switch includes a different type of product asset.
Of course you need to follow the switching rules that apply in accordance with the regulation of the OJK (Financial Services Authority). It is stated in the OJK regulation regarding Mutual Funds in the form of a collective investment contract number 23/POJK.04/2016.
In addition, the regulation also states that there are conditions for investors who want to switch Mutual Funds. Switching can only be done if both Mutual Funds products are managed by the same Investment Manager.
Not only that, you also need to transfer balance from one Mutual Funds product to another Mutual Funds product on the same day. Then, the transfer process will be processed within a maximum of 4 working days or depending on the regulation of the selected Investment Manager.
Benefits of Switching Mutual Funds for Investors
There are several benefits that can be gained by transferring the balance from one Mutual Funds product to another. Read through the explanation below to discover the benefits of switching transactions in Money Market Mutual Fund investments.
1. To Match the Investment Risk Profile
Every investor needs to understand the risk profile of each selected Mutual Funds asset or product. After understanding the risk profile of a product, you can of course decide on the right Mutual Funds product according to your preference with a tolerable level of risk.
Therefore, you can do switching transactions to match the latest risk profile of an investment product. The following are several types of investor risk profiles according to their capabilities and goals in investing.
- Conservative
The first type of investor tends to be a conservative investor regarding the investment risk profile of Mutual Funds. In general, this type of investor will avoid risk or loss, choose safe investment products, and want stable returns.
- Moderate
The next type of investor tends to be a moderate type of investor. Usually, this type of investor has an investment goal in the medium term, so they tend to choose products with a medium level of risk and have the potential of fluctuating returns.
- Aggressive
The last one is investor who has an aggressive type in investing. In general, this type of investor likes challenges can handle high investment risks. Usually this type of investor has high capability and knowledge so they aim for a high return.
2. Can Balance Investment Portfolio
Every investor needs to review their investment portfolio regularly, even if they invest with Money Market Mutual Funds assets. So if there is a decline in investment product performance, the investor can overcome it by switching.
3. Seizing Momentum on Specific Products
Furthermore, you can also do switching to take advantage of a Mutual Funds product momentum. You can do this if a Mutual Funds product shows increased performance and has the potential to continue to strengthen. So that the possibility to benefit from Mutual Funds investment is also increasing.
4. Safeguard Profits
Then, you can also do switching to secure the profits you have gained from certain Mutual Funds products. You can do it when you know that one of your Mutual Funds assets might eventually decline.
This decline could have occurred due to investment corrections based on the national economy, market conditions, and others. So you need to float the profits that have been gained by transferring the balance to Mutual Funds products with more stable yield opportunities.
5. As a Form of Investment Diversification
Finally, you can use switching transactions as a form of diversification in investment. Investment risk is classified as higher if you only rely on one investment product. Thus, diversifying by switching is considered more effective and can minimize the level of risk in investment.
Advantages of DBS Treasures for Switching Mutual Funds
After understanding the meaning and benefits of switching Mutual Funds, you also need to know the advantages of investing with DBS Treasures. Through DBS Treasures you can switch Mutual Funds more easily. You can consider this priority banking for investment activities that are more practical and offer more benefits.
1. Professional Investment Manager
The first advantage of investing in Mutual Funds with DBS Treasures is that they partner with professional Investment Managers who will maximize and optimize the performance of your investment products.
2. It's Easier to Gain Insights to Guide the Investment Process
Furthermore, the advantage of investing in Money Market Mutual Funds with DBS Treasures is that it will be easier for investors to gain insight into the investment process. This is because investing in DBS Treasures is supported by a reliable and proactive team of financial experts who can communicate the latest opportunities as well as market analysis, all of which have been tailored to the aspirations of each investor.
3. Investors Can Reduce Risk by Diversifying
It is easier for you to minimize the risk of loss by implementing diversification in investing. Diversification is distributing investment funds in various types of assets or mutual fund products. You can also do it through switching transactions.
4. Make Transactions Easy and Practical
Finally, you can easily carry out your investment transactions in a practical way without being hindered by time or distance. Because you can make every Mutual Funds investment transaction using the digibank by DBS Application.
Available transactions through the digibank by DBS Application range from asset selling, buying, to switching transactions. In fact, you can also learn Mutual Funds analysis supported by data from Infovesta.
Not only that, new investors who do not yet have a Single Investor Identification or SID can also make one through the digibank by DBS Application, directly issued by the KSEI (Indonesian Central Securities Depository).
The security of the digibank by DBS Application that you can use when investing in Money Market Mutual Funds in DBS Treasures is also more secure. Because every transaction made will be under the supervision of the OJK (Financial Services Authority) and regulated by the government.
All product performance is transparent, and investors will find it easier to compare one investment product with another. This is made possible by providing the same information to every investor to take the right action or transaction as preferred.
You can start investing in Mutual Funds with DBS Treasures to gain various benefits and advantages. Starting from high liquidity, investing with flexible capital, and gaining comprehensive investment insights.
Are you interested to invest in Mutual Funds with DBS Treasures so you can make switching and other transactions easily? You can confidently invest and switch your Money Market Mutual Funds with DBS Treasures.
