Mutual funds are investments in the form of raising funds for investors who want to invest. Funds will be allocated to various investment instruments, one of which is money market mutual funds.
Money market mutual funds are investment instruments with very low risk. These investment instruments usually matures in less than one year. This product is also an investment where the allocated assets include a fixed deposit.
Reasons Why Money Market Mutual Funds Are Profitable
The money market is the right choice for those of you who want to minimise the risk in investing. Apart from that, there are many other reasons why this investment instrument is more profitable. These reasons relate directly with its advantages.
The definition of Mutual Fund is an investment instrument that can accommodate investor funds, one of which is allocated to the money market. Why does the money market become the focus of this instrument? Below are the reasons.
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Low Risk
The risk of investing in the money market is relatively smaller than other investment instruments. This product is suitable for both beginners and experts in investments.
You can also choose 100% fund management in money market instruments with a lower risk level.
The types of money markets assets range from Bank Indonesia Certificates (SBI), bonds, to deposits. These investment instruments are considered potentially profitable as the risk is really low.
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Profits are Relatively Stable
Money market mutual funds will help achieve your aspiration with careful financial planning. You can choose long term placements with relatively fixed profits. What you gain from this investment can then be used for various financial needs.
The money market is also considered a stable investment with less fluctuation. In addition, this investment instrument is also less likely to be influenced by unpredictable global economic shifts.
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Varied Investment Term Options
Money market mutual funds are also suitable for those who want to invest in the long and short term. In addition, it is also suitable for experienced investors and those with less experience, especially in mutual funds.
However, wisdom is advised in deciding the investment period. Make sure the term fits your needs. Carefully consider it before choosing the investment period.
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Relatively High Interest Rates
The next reason why money market mutual funds are profitable is because of their relatively high interest rates. In fact, the return on this investment may be higher than the fixed deposit product offerings commonly offered by financial institutions.
Mutual Fund profits also come from the increase in the assets value in it. When assets value increase, profits will also increase.
As for fixed deposits, the interest rate has been set at the beginning, so there will not be an increase in profits when there is an increase in assets value.
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Investment Funds are Easy to Withdraw
Money market mutual funds have different investment terms compared to fixed deposits. Fixed deposits impose penalties if investors want to make pull their funds prior to the set period.
On the other hand, the money market of Mutual Funds does not such rules. This means that you do not have to wait for the maturity date to withdraw your investment funds. This is one of the conveniences offered by Mutual Funds.
Even so, you still have to exercise discipline in maintaining the investment period. Choose the ideal investment period, both short and long term to suit your financial needs. The ideal timeframe for mutual fund investment is from 1 to 3 years.
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Flexible Investment Fund Placement
According to the definition of Mutual Funds, this investment is a public place to accommodate funds of investors. That is, as an investor you do not need to place a large amount of capital to start investing.
You can check the minimum funds stated by companies or financial institutions that offer Mutual Funds. Then adjust the funds to the investment objectives and desired time period.
The placement of funds also determines how much profit you can get. The more funds you place, the greater the chance of getting a higher profit.
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No Buying and Selling Fees
Investors who wish to add funds to their investment in money market mutual funds will not be subject to additional costs. Because money market mutual funds are investments without buying and selling fees.
Even so, you still have to pay attention to the rules and regulations of the related companies. Because some companies or financial institutions also include buying and selling fees. But you don't need to worry because the fee is relatively low.
How Do Mutual Funds Work?
As we explained earlier, investment funds in mutual funds will be managed by investment managers. But do you know how the Mutual Fund is managed?
We will try to explain how this investment works and makes a profit. Here we have summarized how the Mutual Fund works.
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Fundraising
The investment manager will collect funds from the public who are the investors. People who invest do not need to worry about managing these funds because everything is run by professional investment managers.
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Fund Allocation
The funds that have been successfully collected will then be invested in a number of investment instruments. One example of an investment instrument is the money market such as fixed deposits and bonds.
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Placement of Funds according to the Agreement
Placement of funds is usually by mutual agreement. The placement of funds in question is the allocation of funds to be placed in what investment instruments. Several financial institutions usually offer such deals.
This means that you can choose to allocate your funds in the widely popular money market mutual funds.
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Periodic Report
Investors will receive periodic reports every month from the investment manager. The report contains product performance, securities portfolio, to asset composition.
Types of Mutual Funds Based on the Risks
According to the definition of a mutual fund, funds will be allocated to several investment instruments. That means, apart from the money market, there are also several other investment instruments. The money market remains one of the least risky instruments.
In addition to the money market, we have summarized the following types of mutual funds currently available in various financial institutions.
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Equity Mutual Funds
Compared to the money market, equities are a type of mutual fund that is classified as high risk. However, in relation with the risks, the potential gain it offers are also quite high. Equities are mutual funds that are suitable for long-term investment.
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Fixed Income Mutual Funds
Fixed income Mutual Fund placements are usually made in instruments such as bonds. The time period starts from 1 to 3 years, and some offer an investment period of up to 5 years.
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Balanced Mutual Funds
As the name suggests, this mutual fund uses several instruments at once. The instruments include bonds, money markets, and stocks. The yields it offers are relatively higher than others.
For those who want to invest with low risk of loss, the money market remains the main choice.
DBS Treasures: Trusted Money Market Mutual Fund Solution
Planning to invest your capital in Mutual Funds? DBS Treasures can be the right choice. The priority banking of DBS Bank offers a wealth of mutual funds options, one of which is allocated in the widely popular money market instruments.
DBS Treasures has been registered and supervised directly by OJK (Financial Services Authority). This means that there is no need to doubt its security and credibility.
Registration of investment in DBS Treasures is also very easy. This is because DBS Bank provides efficient registration features for all its clients.
Advantages of DBS Treasures
Apart from being registered with OJK, DBS Treasures priority banking also has a number of other advantages. Here we have summarized some advantages.
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Wealth Management Strategy from Professional Team
The team of financial experts at DBS Treasures is a reliable and experienced team in designing personalised wealth management strategies that are communicated to their clients. This team of experts can optimise portfolio performance to increase profit potential.
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Insights from the Expert Team
Investors will gain a lot of insight related to market analysis and the latest opportunities. This is because the team of financial experts at DBS Treasures provides insights that have been personalised especially for investors during the investment process.
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Minimum Risk
Mutual Fund products from DBS Treasures can reduce investment risk. The way to reduce the risk is also quite unique, namely through diversification of the funds spread to various other investment assets.
Mutual Fund Features and Benefits at DBS Treasures
DBS Treasures offers comprehensive Mutual Fund features. In addition, these features also offer many advantages for investors. The following are the features available in this investment product:
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Increasing Mutual Fund Diversification
Funds from investors can be diversified into many types of investment instruments. The goal is to reduce the risk of investment losses.
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Investment Manager
The Investment Managers partnered with DBS Treasures is highly professional. They also have long experience in optimizing your mutual fund investment.
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Daily Liquidity
Every investor who holds Mutual Funds can sell their holdings based on Net Asset Value on the same day.
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Flexible Investment Fund Placement
This investment is suitable for investors with varied range of capital value. Investors can optimise their strategy to suit the minimum investment placement, investment objectives, and time period.
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Regulated by the Government
This investment product is supervised by the government through the Financial Services Authority (OJK).
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Transparent
As we know, investment managers are required to report information related to the mutual funds they manage to investors. Investment managers partnered with DBS Treasures also offer these periodic reports. These reports will also help investors to make comparisons and understand the products' performance.
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Easier Investment Transaction Process
At DBS Treasure you can switch investments, sell, buy, and process SID registration online through the digibank by DBS application.
How to Invest in Mutual Funds at DBS Treasures
It's very easy to enjoy all the benefits of investing in Mutual Funds with DBS Treasures. The registration process or account opening is fast and efficient so that people can invest directly.
You must first become a priority banking customer of DBS Treasures. After that, prepare a minimum placement of funds in accordance with the requirements. You also have the opportunity to have a wealth management strategy personalised and communicated to you. That way, you make your move confidently.
Conclusion
The money market is one of the investment options for mutual funds that is currently on the rise. In addition to minimal risk, this investment also offers relatively higher returns compared to conventional deposits and savings interest.
Interested in investing in money market mutual funds? Join now with DBS Treasures and gain an investment strategy to confidently optimise your profits. Besides being registered with OJK, DBS Treasures also has a team of professional financial experts.
