Choosing a Mutual Fund Investment Period

Everyone has different goals when investing in mutual funds. Some aim to buy goods, take a vacation, continue their education, get married, and prepare a pension fund. Ultimately, the main objesctive is to prepare for the future by making a profit on investment. When deciding to invest, you must determine the mutual funds investment period that suits your needs.



Everyone has different goals when investing in mutual funds. Some aim to buy goods, take a vacation, continue their education, get married, and prepare a pension fund. Ultimately, the main objective is to prepare for the future by making a profit on investment. When deciding to invest, you must determine the mutual funds investment period that suits your needs.
You must determine a goal for investing in mutual funds, only then can you determine the investment period. The investment period for the purpose of the marriage, which will take place for another year, is certainly different from the time frame for financing the child’s college while the child is still in elementary school. The following are types of investments based on the mutual fund investment period.

1. Money Market Mutual Funds

Money market mutual funds are perfect for those of you who want to invest with a term of less than one year. So far, money market mutual funds are a type of investment that is stable and gives quite a return. This type of investment provides a return of 6 to 7% in a year. Compare with conventional savings which only give zero point profit of a certain percentage!



The profit gained from investing in money market mutual funds will not be deducted by taxes, and you can take this profit at any time without a specific withdrawal period such as deposits. Another advantage of this type of mutual fund is the small initial investment value, starting from one hundred thousand rupiah, and you can easily buy it through the marketplace.

2. Fixed Income Mutual Funds

This type of mutual fund includes medium-term investments with a maturity of about 1-3 years with investment products in the form of bonds that can be issued by the government or companies. Similar to money market mutual funds, investment can start with a capital of one hundred thousand rupiah. This type of investment has a higher risk value than short-term investments, but produces a higher return, which is about 10% a year and is tax free.

3. Mixed mutual funds

Mixed mutual funds are a mixture of stocks, bonds and deposits. Although less popular in Indonesia, this type of investment with a medium term of 3-5 years is very unique because we have to do careful planning regarding investment allocations.
Investment for mixed mutual funds is quite safe because the investment policy is very flexible. For example, when the stock market is quiet, we can shift to bonds and deposits. The benefits of investing in mutual funds can reach 30-70% per three years. Really a very good profit, right?

4. Equity Mutual Funds

Equity mutual funds are a type of long-term investment, with a maturity of more than five years. This investment provides the most return among the four types of mutual funds, but the risk is also the highest.
Equity mutual funds invest by purchasing shares that have been officially listed on the Indonesia Stock Exchange. The profit results are obtained from the increase in the price of shares that have been purchased. The profits obtained from investing in equity mutual funds are very optimal, reaching 15 to 20% a year. Really a very tantalizing advantage, huh?



Those are some types of mutual fund investments based on the mutual fund investment period. You can choose what suits your goals. Every type of investment has risks, so learn the techniques as best you can to avoid losses.
You must determine a goal for investing in mutual funds, only then can you determine the investment period. The investment period for the purpose of the marriage, which will take place for another year, is certainly different from the time frame for financing the child’s college while the child is still in elementary school. The following are types of investments based on the mutual fund investment period.

1. Money Market Mutual Funds

Money market mutual funds are perfect for those of you who want to invest with a term of less than one year. So far, money market mutual funds are a type of investment that is stable and gives quite a return. This type of investment provides a return of 6 to 7% in a year. Compare with conventional savings which only give zero point profit of a certain percentage!
The profit gained from investing in money market mutual funds will not be deducted by taxes, and you can take this profit at any time without a specific withdrawal period such as deposits. Another advantage of this type of mutual fund is the small initial investment value, starting from one hundred thousand rupiah, and you can easily buy it through the marketplace.

2. Fixed Income Mutual Funds

This type of mutual fund includes medium-term investments with a maturity of about 1-3 years with investment products in the form of bonds that can be issued by the government or companies. Similar to money market mutual funds, investment can start with a capital of one hundred thousand rupiah. This type of investment has a higher risk value than short-term investments, but produces a higher return, which is about 10% a year and is tax free.

3. Mixed mutual funds

Mixed mutual funds are a mixture of stocks, bonds and deposits. Although less popular in Indonesia, this type of investment with a medium term of 3-5 years is very unique because we have to do careful planning regarding investment allocations.
Investment for mixed mutual funds is quite safe because the investment policy is very flexible. For example, when the stock market is quiet, we can shift to bonds and deposits. The benefits of investing in mutual funds can reach 30-70% per three years. Really a very good profit, right?

4. Equity Mutual Funds

Equity mutual funds are a type of long-term investment, with a maturity of more than five years. This investment provides the most return among the four types of mutual funds, but the risk is also the highest.
Equity mutual funds invest by purchasing shares that have been officially listed on the Indonesia Stock Exchange. The profit results are obtained from the increase in the price of shares that have been purchased. The profits obtained from investing in equity mutual funds are very optimal, reaching 15 to 20% a year. Really a very tantalizing advantage, huh?
Those are some types of mutual fund investments based on the mutual fund investment period. You can choose what suits your goals. Every type of investment has risks, so learn the techniques as best you can to avoid losses.

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