Here are 5 types of mutual funds that you need to know before you choose one!
Mutual funds are one type of investment. But mutual funds themselves consist of various types. Not a few people choose this type of investment. Choosing a mutual fund, of course, must be adjusted to the needs and abilities of each individual. Therefore, there are 5 types of mutual funds that you need to know before choosing the right mutual fund for you. Check out the following article!
1. Money Market
Usually, this type of mutual fund is placed in deposits, bonds, and Bank Indonesia Certificates (SBI). But the maturity period is less than one year. The profit value obtained is only slightly above the deposit. However, this type of mutual fund has a safer level of risk than other mutual funds.
Usually, this type of mutual fund is placed in deposits, bonds, and Bank Indonesia Certificates (SBI). But the maturity period is less than one year. The profit value obtained is only slightly above the deposit. However, this type of mutual fund has a safer level of risk than other mutual funds.
2. Fixed Income
For this type of mutual fund, usually, at least 80% of the funds are allocated to bonds. And the return can reach 10%. It can be said that this mutual fund has a higher profit than money market mutual funds.
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3. Protected
In general, protected mutual funds place some of their funds in bond instruments that can provide protection for the value of the investment when the maturity date arrives. Has protection of up to 100% of the principal value of the investment if it is disbursed according to a predetermined period of time.
4. Mixed
As the name implies, in mixed mutual funds, the allocation of funds is spread over various financial instruments such as deposits, bonds, and stocks. This type of mutual fund has a higher risk because there are stock investments in it. But on the contrary, it has a higher return compared to fixed-income mutual funds.
5. Equity
Equity mutual funds are the most high-risk mutual funds. Because the value of the minimum placement of funds is 80% allocated to shares. But you also have the potential for the most returns compared to other mutual funds. How? Do you already know which mutual fund to choose?
Equity mutual funds are the most high-risk mutual funds. Because the value of the minimum placement of funds is 80% allocated to shares. But you also have the potential for the most returns compared to other mutual funds. How? Do you already know which mutual fund to choose?