There are many types of investments, one of which is mutual fund investments which are known to be safer and have lower risks than other investments. For people who want to become investors, it’s okay to try investing in mutual funds first while learning money management. Before that, of course, you must know how to play mutual funds correctly and profitably.
Indeed, there is no right or wrong way to play mutual funds, but it can be seen from the results whether they are profitable or losing. When profitable, of course investors want to quickly increase the amount of money but is that true? Well, the answer will be in this discussion. Here’s how to manage money in mutual fund products, which are as follows:
Know the Steps to Become a Mutual Fund Investor
Please note that there are different types of equity, bond, and money market mutual funds that have different returns and risks. Stock mutual funds have higher returns and risks, while money markets have the lowest returns and risks. Still confused about investing in mutual funds? Immediately, let’s look at the explanation of how to play the following mutual funds:
- The first step is of course choosing online platform practical and easy to invest. There are several platform The recommended ones are OVO, Seeds, Magic, and so on. Make sure and read the terms and conditions before you can use it platform maximum.
- The next step is to look at the stock mutual fund products that match the goal of achieving time. For example, for stock mutual funds, it is recommended to have 5 years, the purpose of bonds is 3 years, and the money market is less than 3 years.
- Investors can also make mixed investments that buy several mutual funds at once.
- To find a suitable product, try clicking on one of the products. Also consider the minimum purchase, product type drawdown or loss for one year, and so on.
- In the details of stock mutual funds, there will be information such as the host bank and custodian. Choose the same type of host bank as yours so you don’t have to pay interbank transfer fees.
- Choose an appropriate stock mutual fund that has a high total AUM. Usually the product on platform under the OJK has an official stock mutual fund.
- After selecting, click buy and enter the desired amount according to the minimum purchase.
- Then select a payment method.
- Make payment according to the amount previously entered.
- The investment will come in about 2 working days by going through several investment stages.
- When the investment has been entered, investors will be provided with details of profits or losses earned and updated daily.
What to Do After Buying Mutual Funds?
The next discussion in how to play mutual funds that must be known is what to do after investors buy mutual fund products. More briefly, it will be conveyed through several point on the following explanation:
- Make sure that the investment has come in and the investor can see the gains and losses.
- Usually gains are marked in green and losses are marked in red.
- When your mutual fund product is red, don’t worry because it will likely increase on another day.
- The best step to do top up is when the mutual fund suffers losses. Because the average graph will also decrease and generate more profit.
- Wait for the product to make a profit and sell it for a profit if appropriate.
- It would be better if investors did top up mutual fund products, but it is advisable to do it when you lose.
Those are some of the types and steps that must be taken, after knowing how to play mutual funds, it is better to just do it. Make sure to select the product mutual funds appropriate and deemed suitable with the objectives and financial portfolio owned so as not to overdo it. First, the explanation of mutual fund investment is expected to be useful for novice investors in mutual funds.
Read also: 6 Mutual Fund Risks You Must Know Before Trying It