Did you know that investing actually has quite a high risk? But don't worry, this risk can be minimized by diversification.
Money Market Mutual Funds or Reksadana Pasar Uang (RDPU) is a type of investment instrument that is very suitable for diversification. Of course, this RDPU also has its own characteristics worth choosing.
In investing, you really must develop the right strategy. Not only focusing on profits, but it is also important to pay attention to the potential risks that can occur.
The goal is to take steps to diversify earlier so that these risks can be minimized.
RDPU Concept
What is exactly a Money Market Mutual Fund? Before choosing RDPU as a diversification instrument, let's first understand its concept. RDPU itself is a type of Mutual Funds which investment funds will be allocated to the money market. The money market itself is very diverse, starting from Fixed Deposits, SBI (Bank Indonesia Certificates), SUN (Certificates of State Debt), Bonds, Sukuk, and others.
As with other types of Mutual Funds, RDPU uses an Investment Manager. So the funds you invest will be managed by a party known as the Investment Manager.
Of course, this party already has extensive experience and insight regarding this investment asset. That's why they can optimize the performance of the RDPU instrument you have chosen.
So the concept is easy to understand, you will deposit investment funds and then these funds will be managed by the Investment Manager. Where will the funds be allocated?
Funds will be allocated to the assets mentioned earlier. The portion depends on the decision of the Investment Manager.
Advantages of RDPU
This type of Mutual Funds has many advantages. You can choose it as an investment diversification instrument because of these various advantages. Here are some advantages of RDPU:
- Low Risk
The first advantage is that the RDPU is a type of investment instrument with relatively low risk. Compared to other Mutual Funds assets, RDPU is the instrument with the lowest risk so it is suitable for conservative investors.
Of course, with this low risk, the profit potential is also relatively lower, especially when compared to higher risk instruments.
One way to choose instruments for investment diversification is to look at the risks. It is more advisable to use assets with low risk because diversification is done to minimize risk.
So don't choose an instrument with a high risk because it will increase the potential loss.
Basically, diversification depends on each investor. Investors are free to choose which instrument to use. RDPU is only one of the recommended instruments.
The reason is because it has a low risk, so if there are other instruments that experience a decline, then you can rely on the growth of the RDPU.
- High Liquidity
Another advantage of RDPU is its relatively high liquidity. This is also a distinct advantage for investors holding RDPU assets.
High liquidity means that the funds are easy to disburse. So, at any time the funds are required, investors can withdraw them easily and quickly without waiting for a long time.
Please note that the withdrawal of RDPU investment funds also does not have any deductions. There are no penalty fees that will be applied to investors.
This makes it easy for you to withdraw funds, especially when other investment instruments don't work as expected. That is why RDPU is considered suitable as a diversification asset.
- Higher Profit Potential than Fixed Deposits
The RDPU is also an instrument with an attractive profit potential. When compared to Fixed Deposits, RDPU has a much higher potential profit value.
So there is nothing wrong with making this instrument a diversified product. Besides being safe, the benefits are also reliable and even potentially higher than some other investment instruments.
It is true that RDPU is an instrument with the lowest profit potential compared to other Mutual Funds. However, when compared to Fixed Deposits, this RDPU has a much higher profit potential. So compared to diversification with Fixed Deposits, it’s better to just use RDPU.
- Safe
Note that this RDPU instrument is very safe to be used as a diversification asset. The Mutual Funds is an investment instrument that has been directly supervised by the OJK or the Financial Services Authority.
So you don't need to worry about saving money in the form of this instrument. It's clearly legal and very safe to invest.
With low risk and supervision by the OJK, you can rely on this instrument. These properties really meet the criteria for a suitable instrument to be used as investment diversification.
Due to its high level of security, the RDPU can be a safety net when other instruments don't perform well.
- Tax Free
The Mutual Funds is a type of tax-free investment instrument. This is one of the reasons many investors choose to invest in these assets. There are no deductions imposed because there is no tax to be paid by investors.
It's different with Fixed Deposit interest, which still has to be deducted by tax and the nominal can be quite large.
This RDPU does not have any tax deductions. So the profit you receive is intact and of course this will provide its own advantages. It's just that you need to pay a service fee or Investment Manager fee in accordance with the initial agreement.
However, in general, the amount of this fee is not too large and will not result in loss for you as an investor.
Tips for Minimizing Investment Risk Through RDPU
There will always be investment risks. As an investor, you must be prepared with all the existing risks. In fact, you may even lose the funds that have been invested.
But none of this will happen if you have the right strategy to minimize these risks. Here are some tips to minimize investment risk through RDPU:
- Understand the Working Concept
The first tip, you must first understand the working concept of the RDPU itself. We discussed earlier what is Money Market Mutual Funds or RDPU and how it works. This should be understood carefully so that you can invest smoothly and with minimal risk.
If it is based on strong insight, then this investment can run well and be profitable.
Currently there are many media that you can use to learn about investing. Including to learn about this RDPU instrument. Don't forget, this knowledge must also be updated regularly because the investment world will keep on transforming.
Later this knowledge can be used as a reference for taking steps or investment decisions.
- Choose the Right Platform
The next tip is to choose the right and reliable investment platform. This is also very important because not all investment platforms have comprehensive facilities and features.
It is possible that the performance of your investment instrument cannot be optimal because of the wrong platform which cannot facilitate investors properly.
This is also related to the Investment Manager who will manage your investment funds. Make sure that the Investment Manager has experience and is truly competent in the investment world.
This will increase your chances of earning more profit and minimize investment risk through RDPU diversification.
- Start with Consistency
If you are sure you want to diversify your investment through RDPU assets, then try to start with a strong intention. Then you can be more consistent in investing.
Moreover, this is a Mutual Funds that require consistency from investors. It's easy, you just have to deposit funds regularly to gain optimal benefits.
Consistency in this investment actually needs to be emphasized. If there is no consistency, it will be difficult to be able to deposit funds regularly with the intended amount.
Especially if you have other needs, usually the investment funds will be diverted. You can take advantage of the auto debit feature so that you must be consistent in depositing investment funds.
- Have Investment Goals
It is very important to have investment goals. In this case, you are certain to use RDPU as an investment diversification. That means there are several other investment instruments that you have used.
Here you need to have an investment goal first, so that the motivation is much bigger. In addition, you also know when to withdraw investment funds to meet these goals.
Everyone's investment goals are different because their priority aspirations are also not the same. There are those who want to invest to prepare for retirement funds, children's education funds, and so on.
It is this goal that you must have. So financial management can also be more focused and the investments you make have clear benefits.
However, the diversification itself must be done with careful consideration. Actually, the steps taken are almost the same when starting an investment for the first time.
There are many considerations that must be analyzed carefully so that the selected assets can bring optimal benefits. Including the selection of this RDPU as your investment diversification.
Start Investing in Money Market Mutual Funds with DBS Treasures
You can use this Mutual Funds instrument to minimize investment risk through diversification. Choose DBS Treasures priority banking as your wealth management partner to invest in Mutual Fund assets. There are a wealth of benefits to gain by investing here.
The first advantage, you will be connected to Investment Managers who are experienced and professional in their fields. These funds will be optimized to generate high profit potential. You can also gain additional investment insights from a team of financial experts who are ready to analyze the latest market update.
DBS Treasures is a wealth management partner that will make it easy for you to diversify your investment. There are many investment product choices to minimize losses and increase profit potential.
You can also experience the convenience of investing through the digibank by DBS Application. Transactions are very easy, starting from selling, buying, and switching Mutual Fund assets after registering a Single Investor Identification (SID). You will also be connected to Mutual Funds products either from the Investment Manager or according to the category.
Start investing in Money Market Mutual Funds now confidently with DBS Treasures. You will experience many benefits and you can rely on this instrument as a diversification. Find complete information here.
