As an online investment platform, seedlings provide a wide selection of investment products including: mutual funds inside it. How to choose mutual funds at Bibit is actually very easy. In fact, Bibit has provided a voting robot that can recommend the best mutual fund choices for its users. However, it is better for seed users not to rely too much on the Seed robo.
Seed users too need Pay attention to various things when choosing mutual funds. Bhere is how to choose the best mutual funds in the Bibit application. What things should be considered when choosing it. Here is the review.
1. Finding out the Reputation of the Investment Manager that Seeds Suggest
As previously said, seedlings will recommend mutual fund products and their investment managers to users. This recommendation is adjusted to the investment ability of its users. Before buying a mutual fund product, it never hurts for users to first check the reputation of the recommended investment manager.
The track record of investment managers who work with seedlings is on average good. His reputation is clean and good. However, it never hurts to always double-check before actually buying a mutual fund product.
2. Pay attention to the rate of return
The next way to choose mutual funds at Seed is to pay attention to the level of return of the selected product. It is important for users of the Bibit application to know, a high rate of return does not mean that the profits to be obtained will be large. This rate of return only shows developments in the short term.
Therefore, users of the Seed application also need to think about the long-term benefits. Like the possibilities given in the long term for example in the next 5-10 years. A low rate of return in the short term has the possibility of increasing in the future. This means that profits will be even greater in the future
3. Considering the Risk Level of the Product
Each mutual fund product at Bibit will have its own level of risk. This level of risk in the Seed application is called Max Dragdown. The magnitude of the level of risk is strongly influenced by the amount of return.
Usually, the greater the rate of return, the greater the level of risk. Therefore, before choosing a mutual fund product, it is necessary to pay attention to the level of risk that will be obtained. Adjust this risk level with the duration of mutual fund storage that the user has planned.
4. Adjusting to the amount of the Expense Ratio
The Expense Ratio shows the expertise of investment managers in managing the funds of their mutual fund owners. The smaller the expense ratio shows the more efficient the investment manager. However, a large expense ratio also does not mean that the investment manager’s performance is bad or not good.
This expense ratio must also be compared with the level of risk and rate of return discussed earlier. If this level of expenditure is accompanied by a good return and a low level of risk. It is possible that this expenditure was maximized to get maximum long-term profit. Therefore, the selection needs to be adjusted.
5. Measuring Funds Under Management
The users of the Bibit application can measure how much the Investor Manager has been trusted by the Seed investors so far. The trick is to measure the managed funds, the bigger the managed funds you have. This shows that many Seed investors give their funds to the Investor Manager. This also shows the increasing trust of investors in the Investor Manager.
That’s how to choose mutual funds at Bibit, the Bibit application has indeed provided mutual fund product recommendations for application users. However, that does not mean users rely completely on these recommendations. There is nothing wrong for users of the Seed application to study the selected Investment Manager for themselves. This can help users to get maximum profit.