Investment is very important especially in today's economic conditions. Investment can be one way to keep your assets safe from inflation and you can even use them for other financial goals in the future, such as children's education costs, emergency funds, wedding expenses and so on. If you want to invest, one very interesting instrument to choose is Money Market Mutual Funds.
By investing, your funds are not only stored in a safe place but can continue to grow. You can invest your funds in peace if you choose this investment instrument.
Before you decide to invest, you should first learn and understand what a Money Market Mutual Fund is and its advantages. Understanding investment is one of the most important things so that your investment can provides maximum profit.
Understanding Money Market Mutual Fund Investment
Without understanding of what a Money Market Mutual Funds investment is, of course there will be doubts about placing a large amount of funds. Therefore, you need to really study what Money Market Mutual Funds investment is.
The term Money Market Mutual Fund investment is very common among the public. Money Market Mutual Funds investment is a market investment mechanism that allows investors to invest through financial securities institutions.
In this Money Market Mutual Funds investment, you can place funds which will then be managed for investment in instruments such as Securities, Money Markets, Bank Indonesia Certificates, Fixed Deposits, and so on.
Investment in money market instruments is very different from capital market investment, because in capital market investment there will be transactions between investors and issuers. Issuers are entities that need capital while investors are providers of funds which will later be given to parties who need funds.
Meanwhile, when investing in money market instruments, transactions will occur between the borrower and the owner of the funds. The investment period for Money Market Mutual Funds is also quite short, ranging from 1-3 years. The money invested will be managed professionally by an experienced Investment Manager.
Many people or investors prefer to invest in Money Market Mutual Funds because they have a relatively short period of investment time and are less risky. This investment is very suitable for investors who want to avoid the risk of loss in investing.
What are the Advantages of Investing in Money Market Mutual Funds and How Safe it is?
Money Market Mutual Funds investment is one of the most popular investments because it has many advantages. Investors who choose this investment will get benefits such as:
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Stable Return or Yield
According to the dbs.id website, return or yield from Money Market Mutual Fund investments tend to be more stable due to the the value of money market instruments which does not fluctuate or ranges from 4.5% to 5.5% per year. The potential profit from Money Market Mutual Funds is equal to or slightly higher than Fixed Deposit interest because the yield you will get depends on the amount of capital or funds invested.
The stability of the value of this money market instrument makes Money Market Mutual Funds investments suitable for those of you who want to invest comfortably without having to monitor your portfolio all the time.
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High Liquidity
Investors can also enjoy a comfortable and enjoyable investment because this Money Market Mutual Fund investment has a high level of liquidity. You don't have to wait too long because you can invest in a short period of time. And if at any time you need money or want to withdraw your profits, you can easily do so.
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Flexible
The next advantage is that you don't have to leave your house if you want to invest in Money Market Mutual Funds. Investments can be made through an online application.
In the digital era like now, you can manage and make investments very easily digitally by utilizing the internet and smartphones.
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Mutual Funds Investment is Suitable and Safe for Conservative Investors
Many investors feel that they will benefit from investing in Money Market Mutual Funds. This type of investment has low risk so it is suitable for those of you who are conservative investors.
What is a conservative investor?
Conservative investors are a type of investor who prefers stable and safe investments. This Mutual Funds investment is very suitable for conservative investors because it can lessen the risk of reducing the principal value invested in this investment.
When investing in Money Market Mutual Funds, apart from low risk, you can also enjoy potential profit which is fairly stable. So, it can be calculated how much profit can be obtained after investing in a certain period of time.
Although each type of investment instrument offers its own advantages, those of you who are conservative investors will be very suitable for Money Market Mutual Funds investment.
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Not Taxable
The next advantage of investing in Money Market Mutual Funds is that they will not be taxed. These Mutual Funds are not tax object. You can enjoy the full profit by choosing this investment.
Tips for Maximizing Profits from Money Market Mutual Fund Investments
The potential profit from investing in Money Market Mutual Funds is indeed attractive. Even so, you still need tips and tricks so you can maximise the benefits. Just follow the following tips to maximize the investment profits:
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Invest in Longer Term
The first important thing to do if you want to increase your profit potential is to choose long-term investments. Every year, you have the potential to earn up to 7% profit.
The longer the period of placing funds in the best Money Market Mutual Funds, the more profit you can get. You can easily calculate how much profit you get each year because this investment is relatively stable.
Although the amount of potential profit is not too large because it is below 8%, but by choosing this investment, you are not too worried about the risk of loss that may occur.
As long as you don't rush to withdraw the money, of course the profits will be even greater. If you don't really need an emergency fund, you can still hold the investment.
Choosing a Money Market Mutual Funds investment is attractive because you can easily choose the investment period according to your needs. But if you want to get a bigger profit you have to be patient and wait for the potential profits to be multiplied.
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Invest Regularly
The next important tip is to invest in Money Market Mutual Funds regularly. Don't forget to set aside a portion of your income each month to be placed in Money Market Mutual Funds.
By regularly investing every month, this can also minimize the risk of value fluctuations. Without realizing it, the capital invested in this type of investment will add up and the potential profits will also be even greater.
When making this investment, you can take advantage of various features such as auto debit. Many investors use this regular investment strategy, so they are not too worried about Net Asset Value at that time.
By selecting the auto debit feature, you can automatically invest part of your monthly income into Money Market Mutual Funds.
The Right Place for Money Market Mutual Fund Investment at DBS Treasures
If you are unsure about the right place to invest in Money Market Mutual Funds, then DBS Treasures priority banking ("DBS Treasures") can be the right choice. Many investors entrust their investment needs with DBS Treasures.
DBS Treasures is a priority banking that will support you to confidently invest in Mutual Funds safely and conveniently.
Benefits of Investing with DBS Treasures
With DBS Treasures as your investment partner, there are several attractive benefits to gain, including:
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Funds Managed by Professionals
If you invest with DBS Treasures, you can choose products from Investment Managers who are professional in fund management. You don't need to worry, because the funds will be managed professionally so that they can provide potential profits as expected.
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Investment Guidance
Together with DBS Treasures, you will get investment guidance insights that are very helpful in investing. A team of certified financial experts can communicate information about market analysis that has been tailored to your needs.
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Diversification to Minimize Risk
To minimize risk, funds placed in this instrument will be spread over several investment instruments. This technique is called diversification, which means that your money will be spread across various types of instruments so that it will not be heavily affected if there is a decline in value.
You can invest easily with DBS Treasures through the digibank by DBS Application. Through this application, you can directly analyse, buy and even sell Mutual Funds without having to leave your home.
You can also register SID or Single Investor Identification through this application without having to change platforms. Investing with DBS Treasures brings you many conveniences and benefits.
Through the digibank by DBS Application, you can immediately follow the steps to invest or learn in advance how to choose the best Money Market Mutual Funds for you. It only takes a few moments.
Investing in Money Market Mutual Funds is perfect for those of you who want to earn profit but don't want to face big risks. This investment is very easy and can be a solution for those of you who are conservative investors.
Those are some explanations about Money Market Mutual Funds investment that will help you to understand more about this investment. Do not hesitate to invest with DBS Treasures as it will be managed by professional Investment Managers.
