Are you familiar with Fixed Income Mutual Funds investment? Then, what is the connection between investing in Mutual Funds instruments and the importance of choosing the right Investment Manager? Can your investment profits increase when the Investment Manager you choose is also more professional? Read through for the detailed explanation.
Fixed Income Mutual Funds is one type of investment that uses 80% of its capital for bonds and debt securities. In this instrument, capital is generally invested in a period of more than one year, usually 1 to 3 years.
But even if the timeframe is relatively longer, you can enjoy higher profit potential. You still need to understand that with high profit comes a proportional level of risk.
What is Fixed Income Mutual Funds? And how to get started? You must understand the benefits of this investment. Because only then you can consistently build portfolios with Fixed Income Mutual Funds investments.
Advantages of Investing in Fixed Income Mutual Funds
Before starting an investment, knowing the benefits and advantages that can be gained is the right step. Because these will be the references in making considerations. Therefore, here are some of the advantages that you can gain from this investment instrument:
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Potential for Higher Yields
What is Fixed Income Mutual Funds? It is an investment instrument that offers a higher potential return compared to a wealth of other investments. This makes the instrument popular among many investors with medium and long-term goals.
Fixed Income Mutual Funds provide the potential for higher returns, because the risks taken are also proportional to the gains. It will be a different case if you decide to invest in Money Market Mutual Funds which pose a lower risk.
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Potential Profit from Capital Gains and Dividends
Through Fixed Income Mutual Funds, you can potentially benefit from various sources. Because this investment provides benefits from capital gains and some products also have a dividend feature, as stated in the agreement with a certain percentage or commonly called the yield coupon.
This advantage is quite huge because it is distributed almost every year. In addition, these profits provide an increase in the instrument so that it is included in a fixed income asset.
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Lower Risk
For beginners, choosing low risk investment type is the right choice. Because to enter this world, you need to have strong analytical skills. So that losses can be minimized.
However, in Fixed Income Mutual Funds, you get the opportunity to invest with lower risk compared to other types of investment instruments. This is because the value does not fluctuate as much as in Equity Mutual Funds.
The use of this investment is also safe and should be done within a period of 1-3 years. In addition, its Net Asset Value (NAV) also tends to be more stable and has the prospect of increasing periodically.
Tips for Choosing an Investment Manager for Optimal Profits
If you want to start investing and gain the various benefits as mentioned above, then you need the right Investment Manager. This Investment Manager will manage the funds that have been invested. Therefore, read through the discussion on tips for choosing the right Investment Manager below:
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Ensure Their Experience
The first tip in choosing an Investment Manager is to know their experience. Using an experienced Investment Manager is better to manage the funds you will invest.
It’s advised to choose an Investment Manager with a minimum of 5 years’ experience. The longer a company is established, its capabilities will continue to improve. In addition, the decision-making in managing investment funds can be right on target in the face of market movements. The Investment Manager will continue to innovate so that the funds that have been invested will provide optimal returns.
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Knowing the Track Record
Learning the track record of the Investment Manager should be done thoroughly. You can find out from the news related to the Investment Manager.
Make sure you're not easily tempted by great deals on offer before researching its track record. Find out every news related to the name of the Investment Manager company in the last few years, both through social media and print media.
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Cross-Check with OJK (Financial Services Authority)
Fixed Income Mutual Funds requires a trusted Investment Manager for significant profit to be obtained. One way you can do during the selection process is by cross-checking.
The rise of fraud makes many operating licenses spread very widely without an official stamp. To minimize risk, you can cross-check with the Financial Services Authority. If the data is also available on the official website of the OJK (Financial Services Authority), it can be ascertained that the Investment Manager has been officially registered.
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Running Investment Management with Consistent Performance
Entrusting funds for Fixed Income Mutual Fund investments to be managed by another party requires due diligence from you. Because if you select the wrong one, the funds that have invested could be used for other things. It can have a bad impact on you personally.
Make sure to choose an Investment Manager with consistent performance. So, you won't have to worry about drastic value movements that could happen.
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Transparent Fees
Selecting an Investment Manager to manage your Fixed Income Mutual Funds is not easy to do. There are many things you need to consider carefully before deciding to work together.
One of them is by paying attention to the transparency factor. Be sure to choose an Investment Manager who discloses fees transparently. Because this will have a big influence on your investment decisions.
You must consider several decisions based on the disclosure of service fees and the fair value that must be paid. Because not all Investment Managers who charge high prices for their services provide the desired results.
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Recognise Risk and Return
Recognising every risk that can occur during the investment process and returns is mandatory. You should also understand the investment strategy of the selected Investment Manager. If the offer given is always associated with high returns, you should keep in mind two possibilities.
First, fraud is prone to happen to someone who offers a big payoff in the near future. Second, it relates to the level of investment risk that may occur. Because the benefits and risks in investment are proportional to each other.
Fixed Income Mutual Funds Investment in DBS Treasures
Selecting an Investment Manager to manage your investment is not easy. In addition to having to be careful in making the selection, you need to be thorough when looking into the background history.
One way to invest in Fixed Income Mutual Funds that suit your goals is to invest with DBS Treasures priority banking. DBS Treasures can be the right choice if you want to diversify related to Fixed Income Mutual Funds, Money Market Mutual Funds, or Equity Mutual Funds. Apart from that, you can also gain a wealth of benefits such as the following:
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Managed by Professional Investment Manager
By investing through DBS Treasures you can select the right Investment Manager. This is because DBS Treasures partners with an Investment Manager who can manage your funds professionally. You don't have to worry, DBS Treasures provides access to reputable Investment Managers who can do their job optimally.
So, you no longer need to worry about the invested funds, even in quite a large sum. In addition, to ensure the validity of profession, you can conduct research related to their track record. So, entrusting your investment with DBS Treasures can be done with peace of mind and comfort.
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Provides Comprehensive Insight to Guide Decisions
If you are still a beginner in the investment world, it’s difficult to know and analyse market movements along with product performance. Now there is no need to worry and hesitant to start. Because DBS Treasures provides comprehensive facilities related to guide your investment.
You can communicate directly with a team of financial experts. Their expertise has been proven in overcoming economic challenges and they are proactive in fulfilling your financial aspirations. So you can make confident investment decisions at the right time.
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Reducing Risk with Diversification Method
Every investment has risks. This instrument is no exception. To minimise losses, DBS Treasures manages investments using the diversification method.
Your funds will be diversified into various assets or company instruments. So, if there is an unexpected risk, it will not bring the whole portfolio down.
When investing in Mutual Funds with DBS Treasures, you will be advised to choose several options. If you want the quick results potential, you can choose the 1-3 year period. However, if you understand the prospects and movements as well as the results offered, taking a 3-5 year span would not be a problem for you.
What are you waiting for? There are many advantages and conveniences you can gain if you invest in Mutual Funds with DBS Treasures. You don't need to hesitate anymore to choose DBS Treasures as a partner to invest. Investing in Fixed Income Mutual Funds will be safer, has a high profit potential, and can be done 24/7 through the digibank by DBS Application, and you can expect long-term prospects with DBS Treasures.
