Investment is the right strategy to achieve your financial goals. This step can be done through various types of instruments, including Mutual Funds. This investment instrument has many advantages and is considered suitable for investors without much time to do their own market analysis.
Through this investment instrument, you can deposit funds to the Investment Manager for optimal management. Investment Manager will manage funds and allocate them to potential assets or products. The opportunity to gain profit through this investment instrument is considered quite good.
Types of products
First of all, note that this investment instrument has several product types to choose from. In order to get optimal profit, it is necessary to understand what types of products to choose. Of course, the choice of products must be adjusted to your risk profile as well as financial goals. Here are some types of Mutual Funds that can become your investment assets:
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Money Market Mutual Funds
First, there are Money Market Mutual Funds. It’s a type of investment in which the funds will be placed in the money market. For example, in the form of savings, current accounts, deposits, and debt securities. This investment asset is widely used as an option for people who want to learn more about investment techniques.It should also be noted that this type of investment has a fair liquidity. However the profit or yield is relatively lower than other types of mutual funds. This type of investment can also be an alternative when you want to diversify. The profit generated from this investment can balance other assets that you have.
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Fixed Income Mutual Funds
Next there are Fixed Income Mutual Funds. The meaning of Fixed Income Mutual Fund is an investment which funds are allocated to fixed income generating securities. For example, placed on debt securities or bonds. These debt securities will later provide regular or fixed profits, for example every three months.This type of investment is considered a safe way of managing funds. In addition, the funds are also liquid and tax free. The return you can gain are also potentially profitable. In terms of transparency, this type of investment is considered transparent so it can be trusted.
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Mixed Mutual Funds
There are also Mixed Mutual Funds that can be used as investment or diversification options. This instrument will place your investment funds into various types of assets. Starting from stocks, bonds, as well as the money market at the same time. However, please note that the total allocation of funds for each of these assets cannot be more than 79%.Why can't the composition be more than 79%? If the composition of the fund is more than that number, it will be considered another mutual fund. This type of investment can potentially provide a satisfactory return. In addition, the diversified assets are deemed effective and relatively safer. This investment can be a great tool to learn about diversification.
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Equity Mutual Funds
Next, there are Equity Mutual Funds which are also highly popular, and investors often rely on it to gain profit or return. Please note that this type of investment is different from stock investment. Stock investment is done independently, in contrast to this type of investment where investor funds will be managed by a professional Investment Manager.The meaning of Equity Mutual Funds is an investment made by depositing funds to the Investment Manager to buy shares of certain issuers. The return obtained will come from the difference between rising and falling stock prices. The potential return value is relatively high and can even reach 20%.
From this explanation, you may draw conclusions on which instrument or product is considered the most profitable. But you avoid immediately making a choice without proper analysis. Make sure that the instrument you choose is in accordance with your investment goals.
There is another factor that must be considered in choosing an investment product, namely the risk profile. You must understand the risk profile you have as an investor. Make sure that the type of investment you choose fits your risk profile. Next, we will discuss what asset choices are most appropriate for your risk profile, including the investment period in plan.
Choice of Assets according to Risk Profile and Investment Period
You need to understand how to choose Mutual Fund assets or instruments that suit your risk profile and desired investment time. That way, you can gain the optimal profit from the investment. Below is a selection of investment types that can be tailored to your risk profile and investment period:
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Low Risk
First there are investors who have a low risk profile. This means that this investor belongs to the conservative or risk averse type. This is the type of investor who prefers investment instruments within the safe category. Usually, investors with low risk profile avoid the possibility of decreased principal investment capital.For this type of investor, the money market would be a very suitable choice. This type of investment is considered to have low risk and the return opportunity is quite satisfactory. In addition, fixed income can also be an option for investors with conservative types. Both can be used as medium to long term investments.
Keep in mind that the money market can also be utilised as a short-term investment option. Usually this instrument will be an option for investors who want to make a profit in potentially shorter time, even though the value is relatively lower. Other investors choose to use it as a medium to long term investment.
Actually, conservative investors are advised to invest in the long term. Keep in mind that low-risk investments will yield low returns or profits. So it would be much better if the investment is made in the long term to gain more profit.
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Moderate Risk
Next there are investors who have a moderate risk type. Investors with moderate risk profile are much more willing to take risks than conservative investors. Usually, moderate investors will also choose instruments that have short-term fluctuations. These investors also expect higher profit potential than Fixed Deposits.There are many moderate investors who actually understand that investment instruments have a fluctuating return value. This means that the return value can go up or down according to market conditions. However, investors will still hope to get an optimal profit or profit and not bear the loss of the investment.
For the type of investor with moderate or moderate risk, mixed mutual funds can be the best choice. This is a type of investment that is relatively low risk but the profit is quite fair. This product is also highly recommended for investors who want to invest in the medium to long term.
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High Risk
For investors with a high risk profile, investing in Equity Mutual Funds will be the suitable choice. This instrument does have a high risk but the return is also potentially higher. Investors like this are also known as an aggressive investor type or a risk taker. They are ready to lose their funds in order to get even higher return.Based on their risk profile, this aggressive investor type can make short-term and long-term investments. As long as the potential results or returns are high enough, investors will be willing to spend large amounts of funds. Usually, this type of investor tends to prefer long-term investments.
From this explanation, which one is your risk profile? In addition to understanding the meaning of Mutual Funds as explained in the previous section, you must also understand how to assess your own risk profile. You have to know how long you want to invest and how much money you are ready to invest.
Also set your investment goals and determine the investment period. Can you really achieve your goals with short-term or long-term investment instruments? This will help you to find the right instrument with the most satisfactory return.
Start Investing with DBS Treasures
Mutual Funds investment is now much easier and safer to do with DBS Treasures. The priority banking allows seamless investment in various types of assets, so you can make the right move at the right time confidetnly. Below are some of the advantages offered by DBS Treasures:
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Partnering with Professional Investment Managers
Through DBS Treasures, you can have your investment funds managed by a professional Investment Manager. If you choose this instrument type then you need to choose a reliable Investment Manager. A professional Investment Manager will help you to achieve more profitable gain. -
Supported by a Team of Experts
In addition to partnering with professional Investment Managers, DBS Treasures also provides insightful support from a team of financial experts. This team of experts will personalise and communicate the latest strategies related to your investment interests, including mutual funds. In addition you will also gain the latest analysis and investment opportunities that can support you to fulfill your aspirations. -
Easy Diversification
Investors need to diversify in order to optimise profits and minimise investment risk. With DBS Treasures, you can diversify easily and safely. The diversification step is easier to do because there is a complete selection of products available. Support from a team of financial experts will also make it easier for you to diversify properly. -
Invest via digibank by DBS Application
You will also enjoy seamless investing through the digibank by DBS Application. Selling, buying, and switching Mutual Fund assets is much easier to do in one application. The wealth of products available also makes it easier for you to invest.
For new investors, a registration step is required in order to get your Single Investor Identification or SID. With digibank by DBS Application digital capabilities, you don't need to switch platforms to register. Registration can be done easily through the same application and soon enough you can get an SID to start investing.
Mutual Funds can be a potentially profitable investment instruments. It offers a wealth of product selections and easy diversification. In addition, the profit opportunity of this instrument is also quite promising. The risk can be adjusted to your risk profile and the financial goals you want to achieve.
