Types Of Mutual Funds, Here Are Some Of The Lists

Types - types of mutual funds (Towfiqu barbhuiya image - Unsplash)

A mutual fund is an alternative investment for investors, especially small investors and investors who do not have much time and the ability to calculate the risks of their investment. Let's add some types of mutual funds!

The mutual fund is designed as a facility to raise funds from residents who have capital, have the will to carry out investments, but only have limited time and knowledge.

Not only that, mutual funds are also expected to increase the role of local investors in investing in the Indonesian capital market.

Generally, mutual funds are interpreted as a forum used to raise funds from the public investors for the next investment in the impact portfolio by investment managers.

There are 3 things that are adrift of this definition, namely, first, the existence of funds from investors. Second, the funds are invested in the securities portfolio, and third, the funds are managed by investment managers.

Thus, the funds contained in the mutual fund are funds with investors, on the contrary, investment managers are trusted parties to manage these funds.

Universally, the types of mutual funds are divided into 4, namely mutual funds for the money market, fixed income, mixed and shares.

Money Market Fund (Money Market Fund)

Money market mutual funds are the type of mutual fund that invests in the type of investment instrument for the money market and the maturity period is less than one year.

The investment instruments can be in the form of time deposits, certificates of deposits, Bank Indonesia Certificates (SBI), Money Market Securities (SBPU) and various types of other types of money market investment instruments.

The goal is to protect liquidity and capital maintenance. The risk is relatively very low compared to other types of mutual funds.

Fixed Income Fund)

Revenue mutual funds are always the type of mutual fund that invests at least 80 percent of its assets in the form of debt or bond impacts.

The goal is to create a normal level of return. The risk is relatively greater than the money market mutual fund.

Mixed mutual fund (Balance Mutual Fund)

Mixed mutual funds are a type of mutual fund to allocate various investment funds in the portfolio. The investment instrument can be in the form of shares and combined with bonds.

The goal is to develop prices and income. The risk of mixed mutual funds is moderate with relatively greater return rate capability than fixed income mutual funds.

Share mutual fund (Equity Fund)

Share mutual funds are the type of mutual fund that invests at least 80 percent of its assets in the form of equity effects.

The goal is to develop stock prices or units in the long term. The risk is relatively greater than money market mutual funds and fixed income mutual funds, but it has a very large level of return capacity.

So after knowing the types of mutual funds, see other interesting news on VOI, it's time to revolutionize news!