When wanting to buy or sell Fixed Income Mutual Funds, investors must pay attention to the right transaction hours before buying or selling their Mutual Funds.
Basically, there are still many people who are confused about determining the best time to buy and sell Mutual Funds, including Fixed Income Mutual Funds. Most investors are still referring to declining market conditions.
However, aside from looking at the economic situation, there are many things you need to consider before selling or buying Mutual Funds.
Understanding Cut Off Time in Mutual Fund Transactions
The term cut off time is widely known by investors. Cut off time itself is defined as the deadline for receiving transactions per day that applies to purchases and sales. Normally, the cut off time for Mutual Funds is before 1 PM every day.
Afterwards, Mutual Fund transactions can only be carried out at predetermined hours and trading days, namely every Monday to Friday, except for national holidays in which the trading hours are not available. You need to know that specifically for Mutual Fund type transactions, the cut off time or closing time is at 12.00 WIB.
If an investor buys or sells at 08.00-12.00 WIB, the transaction process will be carried out on the same day and follows the NAV/UP price on that day.
Conversely, buying and selling Mutual Funds after 12.00 WIB will be processed the next day and follow the NAV/UP price on that day. NAV/UP prices will generally be announced every day at 17.00 WIB.
If you are still confused about this Mutual Fund cut off time, below is an example of a transaction. If an investor buys 1,000 investment units before the cut off time where the price on the closing day is IDR 2,000, then the investor will get a NAV/UP price of IDR 2,000.
However, if investors buy Mutual Funds after the cut off time, they will get the NAV/UP price after closing for the next day which can exceed the price before the cut off time, amounting to IDR 2,100 for example.
If you calculate one year later where the NAV/UP price increases to IDR 2,500, the profit you will gain when you want to sell the Mutual Fund is as follows:
IDR 500,000 [(2,500-2,000) x 1,000 units of participation] IDR 400,000 if buying Mutual Funds before that day’s cut off time [(2,500-2,100) x 1,000 units of participation] Seeing the description of the transaction above, you as an investor need to be observant in choosing the right time to make a transaction. That way, you can gain the maximum profit from Mutual Funds.
Things to Consider When Buying and Selling Fixed Income Mutual Funds
Consider the following important points before you sell or buy Mutual Funds.
When you want to do a Mutual Fund transaction, you also need to pay attention to urgent needs that can occur at any time and the availability of emergency funds. Make sure not to sell Mutual Funds if you still have an emergency fund that can be used to meet these needs.
However, if you are very pressed for funds, there is nothing wrong with selling your Fixed Income Mutual Funds. Make sure that when making a sale, you have done careful calculations and considerations.
Pay Attention to Investment Objectives Apart from unexpected needs, you can also sell your Mutual Funds if your investment objectives have been met.
As a wise and careful investor, you should have clear investment goals even from the start of investing. If the investment goal has been achieved, it is not a problem to sell your Fixed Income Mutual Funds .
Profits from Mutual Funds can also be used for various needs, from wedding funds, education funds, to hobbies such as traveling abroad or buying dream items.
In fact, many investors also take advantage of the profits from selling these Mutual Funds to invest in other products such as stocks or property.
Review Investment Manager Performance Investment Managers also have a very big role in maximizing the Mutual Funds that you have. So, even though market conditions are fluctuating, your Mutual Fund portfolio will still be safely under control in the hands of professional Investment Managers. So you don't need to withdraw the invested funds.
However, you need to know that not all Investment Managers can optimally manage the invested funds. Sometimes, there are several Investment Managers who fail to predict the ongoing economic conditions, leading to poor management of invested funds.
If you face this kind of situation, don't hesitate to withdraw your Mutual Fund investment. Then, choose another Investment Manager who is professional and experienced.
Want to Rebalance Portfolio It is undeniable that investing in Mutual Funds does not always run smoothly. There are many factors that can influence this, including unstable market conditions. To be able to stabilize the performance of your Mutual Funds, you can do portfolio rebalancing.
Generally, investors rebalance regularly, namely every six months or once a year. This rebalancing is done by selling several types of Mutual Funds including Fixed Income Mutual Funds.
Observe Mutual Fund Performance Apart from observing the performance of the Investment Manager, you must also pay attention to the performance of the Mutual Fund products that you own. If the Mutual Fund product continues to show unsatisfactory results, then feel free to sell it.
However, make sure to pay attention to all the factors that affect the performance of the Mutual Fund. If the decline in your Mutual Fund portfolio occurs due to a corrected market, then don't sell it immediately.
Generally, Mutual Fund performance will stabilize for about 2-3 years. If during this time your Mutual Fund performance continues to deteriorate, you may sell it immediately.
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Reduce Risk through Diversification You can diversify the spread of funds into various types of investment assets to reduce the risk of loss.
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