Nowadays many people have realized that saving large amounts of money in the bank is not profitable, so many of them have started to change direction, from the saving movement to the investment movement. Because investment can be used as a money-making machine, thus generating passive income without the need to work hard. The number of investment instruments available Mutual funds are one type of investment that is very suitable for the layman.
What is Mutual Fund?
Mutual funds can be interpreted as a platform that collects funds from the community or capital owners to be invested by the investment manager (fund manager) in a portfolio of securities, either on the money market or capital market.
So the basic understanding of mutual funds, investors only need to deposit some money to the investment manager, then they will manage the funds so they can make a profit. So because of this, mutual funds are perfect for anyone, both beginners and ordinary people.
Types of Mutual Funds
The funds that have been collected from investors will be placed on several investment platforms which we can categorize into 4 types of mutual funds, namely:
1. Money market mutual funds
Funds that have been collected from investors will be divested in short-term money market instruments or less than a year. such as time deposits, money market securities, central bank certificates etc. Money market mutual funds will provide a return of around 6-8% per year.
2. Fixed income mutual funds
In the type of fixed income mutual funds, funds are invested in debt securities such as government bonds,
3. Stock mutual funds
Often referred to as Equity Fund, will provide high returns but also have a high risk as well. Because investing in stock mutual funds will follow the movement of stock prices on the stock exchange.
4. Mutual Fund Balance
Balanced mutual fund is a type of mixed mutual fund investment
good on bonds. securities and shares. So it is a diversification of investment in mutual funds.
What is Mutual Fund?
Mutual funds can be interpreted as a platform that collects funds from the community or capital owners to be invested by the investment manager (fund manager) in a portfolio of securities, either on the money market or capital market.
So the basic understanding of mutual funds, investors only need to deposit some money to the investment manager, then they will manage the funds so they can make a profit. So because of this, mutual funds are perfect for anyone, both beginners and ordinary people.
Types of Mutual Funds
The funds that have been collected from investors will be placed on several investment platforms which we can categorize into 4 types of mutual funds, namely:
1. Money market mutual funds
Funds that have been collected from investors will be divested in short-term money market instruments or less than a year. such as time deposits, money market securities, central bank certificates etc. Money market mutual funds will provide a return of around 6-8% per year.
2. Fixed income mutual funds
In the type of fixed income mutual funds, funds are invested in debt securities such as government bonds,
3. Stock mutual funds
Often referred to as Equity Fund, will provide high returns but also have a high risk as well. Because investing in stock mutual funds will follow the movement of stock prices on the stock exchange.
4. Mutual Fund Balance
Balanced mutual fund is a type of mixed mutual fund investment
good on bonds. securities and shares. So it is a diversification of investment in mutual funds.
