Guys do you know the terms in mutual funds yet? Well, for those of you who want to invest or become an investor, you must know. So that in the future you will better understand mutual funds. How many terms. So, in the investment world there are several terms. Which term can you use as a source of knowledge before plunging into the world of investing.

Investment Manager

Investment Managers are professionals who have received approval from the OJK to manage mutual fund investors’ money. This investment manager will invest your money in various mutual fund investment products, such as deposits, bonds, or stocks.

Net Asset Value

NAV or Net Asset Value is one of the terms in mutual funds which is the total value of the mutual fund’s net worth every day. This wealth can be calculated by adding up all the value of investment assets, bond coupons, and stock dividends. Then the total is deducted by the mutual fund operating costs. Examples are custodian bank fees and investment managers.

Custodian Bank

One of the financial institutions that has received approval from the financial services authority to store, safeguard and supervise mutual fund assets is the Custodian Bank. In this case, the assets in question are for example, deposits, stocks and bonds. The bank also holds investment funds to minimize the risk of abuse by the Investment Manager. The Custodian Bank is also responsible for the records of all activities related to investors and investment managers.

Securities Portfolio

A Securities Portfolio is a collection of various securities, including bonds, shares, mutual fund units that have been sold in a public offering, as well as debt instruments, commercial securities, and evidence of debt.


Prospectus is a profile report and summary of collective investment contracts executed by custodian banks and MI. In general, the propsectus contains detailed information related to a mutual fund product. Starting from the formation of mutual funds, how to buy and sell them, to liquidation, ideally everything is listed in this propsectus. So, make sure you read it carefully before buying a mutual fund product.

Participation Units

Participation units are used to show the number of investments owned by investors in accordance with the securities portfolio. So, when you buy a mutual fund, you will definitely get an investment unit from the investment manager. After you sell it again, the investment unit returns to the investment manager.
So, how about guys? At this point, understand what are the terms in mutual funds. Hopefully this article is useful for you, especially those who want to invest their money in mutual funds.

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