Mutual funds provide benefits to investors without having to constantly monitor the trading activity in the stock market because of its investment in the care of a mutual fund manager or investment manager. Besides the ease of it are still some benefit or advantage else do you get when you invest in mutual funds, such as:
Investment diversification and spread of risk
The amount of funds managed by mutual funds allow managers to diversify its investments into different types of securities (stocks, bonds, money markets), does not depend on one or several instruments only, so there is a spread of risk (risk minimization).
Funds mutual fund purchase relatively inexpensive
Indirectly you can purchase Blue Chip stocks or bonds which are expensive through mutual funds, although in small quantities. Total investment is relatively low, but have access to benefits as well as investing in larger quantities.
Professional portfolio management
Your funds are managed by experienced professionals and are referred to as the investment manager, they have access to market information through many sources, so it can take more accurate decisions for the benefit of your investment. You are also free from administrative work and investment analysis, so you invest easily and flexibly.
The relative costs will be smaller because the fund is managed in a very large number of professionally, so it will create efficiency in its management.
liquidity is assured
If you want to resell your mutual fund, the fund manager shall buy it back.
Equitable investment opportunity
Capital market is still regarded as a land of investment for the owners of big capital or for those who have access to good information. Through mutual funds, investors smallhold- got a chance to come to plant their money in the stock market.
Safe and transparency in information
All the assets of mutual funds kept and maintained by a third party, namely the custodian bank and audited twice a year by a public accountant. The investment manager must issue a Net Asset Value report in the newspaper every day and publishes financial reports every semester so that investors can know the development of investment funds. Each investment is overseen by the Capital Market Supervisory Agency (Bapepam) and protected by law.
Mutual funds are one of the collective investment container can be the right investment choice to save your money. Understand the purpose you invest in a mutual fund and what level of income you want. If all purposes was preplanned, then to meet it is relatively easier availability. Get used to invest regularly every month from the salary you receive before everything has been spent. By investing in a mutual fund, you’re investing for the long-term financial planning. Congratulations to invest and enjoy the fruits of your investments from mutual funds