In the last few months, it seems that mutual fund investment is experiencing an increase, both in terms of enthusiasts and people’s knowledge regarding the importance of investing.
Maybe that’s why, too, the investment market is increasing day by day. But the question now is, what are the types of mutual fund investments? If you are curious, let’s see the review in the following article!
What are the Types of Mutual Fund Investments?
For those of you who are still beginners and don’t know what the types of mutual fund investments are? Don’t worry, we will provide a little summary of the discussion in this article for you. So watch it till the end!
1. Money Market Mutual Funds
Where all money is placed in deposits, in Bank Indonesia Certificates (SBI) and also in bonds. The market maturity of this market mutual fund is less than one year. This type of mutual fund also tends to be more secure. But again, because the risk is small, the profit is also relatively small.
2. Fixed Income Mutual Funds
Where funds are allocated to bonds at least 80%. The benefits obtained are higher and can reach more than 10% per year.
3. Money Market Mutual Funds
True to their name, these mutual funds use various regulations of the previous type. It is very risky but if successful then the mutual fund will generate high and also amazing returns.
Of course, even if it earns a little or a lot, you as a beginner should be careful in making decisions and doing mutual funds so they don’t lose money.
4. Mixed Mutual Funds
Generally called permanent income mutual funds. Where these mutual funds place some of their funds in bond instruments that can provide protection according to their name. This means that these mutual funds are less risky than stock and mixed funds.
5. Index Mutual Funds
Where this type is similar to stocks because these instruments can be traded on an exchange called ITF (Exchange Traded Fund) and prices can fluctuate like stocks.
But these mutual funds usually contain certain indexes that are passively compounded, meaning they don’t buy and sell on the exchange unless there’s a new budget or redemption.
Conclusion and Closing!
Well, that’s a complete explanation regarding the types of mutual fund investments that you must know.
If you want to know more detailed information related to business or investation that is profitable, then just visit the business tax extension deadline 2021 website.
Because the business tax extension deadline 2021 website will explain more about business and investment.
Whether it’s business or investment in the short or long term, so don’t forget to follow the developments of the 2021 business tax extension deadline website, okay?
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