As an investor, especially a beginner, you have the right to know how to maximize profits when investing in Money Market Mutual Funds, Fixed Income Mutual Funds or Equity Mutual Funds.
It is important for you to do this to avoid losses when investing in Mutual Funds. Even though Mutual Funds are classified as low-risk investment instruments, you still need to implement several investment strategies to get maximum return potential.
Important Tips to Gain Maximum Profit in Investment
There are several important tips that you need to apply to gain maximum profits when investing in Mutual Funds. Here is the list:
- Prepare Emergency Funds
Before focusing on getting maximum profits from Mutual Funds, investors should prepare emergency funds first. Beginners in investing may not fully understand what is Fixed Income Mutual Fund (RDPT) and the best investment duration.
Basically, investing in RDPT is a medium-term investment, which is around 3-5 years. Therefore, during this period, you need to have emergency funds so that you don't get panic when you see a dynamic portfolio graph movement.
Don't let yourself continue to withdraw investment funds in RDPT to cover your daily needs. If this is the case, then your RDPT investment goals will not be realized.
Naturally, many professional investors recommend having an emergency fund before starting to invest in Mutual Funds. The presence of emergency funds will certainly make you feel safer and more comfortable investing in Mutual Funds.
- Set Investment Goals
Once you have prepared an emergency fund, the next step you must take is to set a Mutual Fund investment goal. Clear goals will maximize the potential success of your investment.
For example, if you plan to buy a house through Mutual Fund investment in the next 5 years, then start investing now. Make sure not to withdraw your investment capital during this time period. That way, maximum profits from investing in Mutual Funds can be achieved.
Then, if you need to buy a vehicle within a year or two, for example, then put your capital in a Money Market Mutual Fund instrument.
Likewise, when preparing funds for your child's education for the next 10 years, try investing in Equity Mutual Funds.
On the other hand, not being consistent with your investment goals will only hinder the realization of your aspiration of owning your dream home, dream vehicle, and paying for your children's education.
- Recognize Your Risk Profile
Generally, each type of Mutual Fund instrument or product has its own level of risk. Knowing the risk profile is certainly a very important part for investors, especially for beginner investors.
In simple terms, recognizing your risk profile will make it easier for you to know the benchmarks for your abilities and capabilities when investing in the selected Mutual Fund instrument.
Equity Mutual Funds are among the Mutual Fund instruments that have the highest risk of loss among other types of Mutual Funds. However, the potential profits are higher than returns from Fixed Income Mutual Funds and Money Market Mutual Funds.
So, make sure to focus on your risk profile. Don't invest in Mutual Funds straight away even though you don't know your risk profile well.
If you are an aggressive type of investor, you can place your assets in a Equity Mutual Fund instrument. On the other hand, conservative and moderate investor types who tend to be worried and are still wary of fluctuating charts may prefer Money Market Mutual Funds and Fixed Income Mutual Funds.
Understanding your risk profile well will help you understand your financial needs and capabilities. Long-term investments certainly require different investment instruments from short- and medium-term investments.
- Choosing the Right Investment Manager
In order to reap as many profits as possible, you also need to consider the choice of Investment Manager. Choosing the right Investment Manager can maximize returns in your Mutual Fund portfolio.
Therefore, you need to be more observant and thorough in choosing an Investment Manager. It’s the right way, as all invested funds will be managed by the Investment Manager.
You can check whether your Investment Manager is legal or not on the OJK website. There's no harm in checking the experience and historical performance of the Investment Manager. This is important to do to avoid losses that could occur.
- Check the Legality of Mutual Fund Provider Institutions
Not only checking the legality of the Investment Manager, you also need to check the legality of the institution or party providing Mutual Funds before investing. Generally, every Mutual Fund provider In Indonesia have obtained permission from the OJK or Financial Services Authority.
After verification, the OJK will issue a permit to the Mutual Fund provider institution that is considered verified. So, if you find an institution or body providing Mutual Funds that is not registered on the OJK website, then you can be sure that the institution is an illegal institution.
- Always Learn and Improve Your Mutual Funds Knowledge
Even though you have studied what Fixed Income Mutual Funds are and the ins and outs of the investment world, you still need to learn more about investment, including Mutual Funds.
However, information about the investment world will continue to expand and also change over time following current economic flows. Therefore, you need to equip yourself by continuing to learn and not be quickly satisfied with the investment knowledge you have gained.
For example, if you are familiar with the types of Mutual Funds and their risk profiles, then the next step is to study the factors that increase and decrease the value of investments.
That way, you will always be ready for developments in the investment market in the country. It is not impossible that you can level up to become a Mutual Funds and shares investor.
More Practical Mutual Fund Investment with a Team of Experts
If you want easier and more practical Mutual Fund investment, then invest in Mutual Funds with DBS Treasures priority banking. There are several advantages of investing with DBS Treasures that you need to know.
Your entire investment fund will be managed professionally by an experienced Investment Manager who partners with DBS Treasures. You can also gain maximum Mutual Fund profits by avoiding the risk of loss when investing because DBS Treasures provides a diversification system where investors can spread their assets through the various investment products provided.
Gain the support of 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.
Are you ready to invest in Fixed Income Mutual Funds soon? Invest through DBS Treasures now. You can find the comprehensive information here.
