Weekly Finance Reviews

As you may already know, mutual funds (mutual fund) is a vehicle that is used to collect public funds (investors) to then be invested into the portfolio of securities by investment managers (MI). Portfolio securities may be stocks, bonds, money market instruments, or a combination of several of them.

People say do not put your eggs in one basket. That is, to optimize the benefits while minimizing the risk diversification that needs to be done when there is a loss in one asset, can still be cover with other assets to avoid the maximum loss. Consequently, we need to build a portfolio of assets, the collection of assets with different risk profiles such as stocks, bonds, deposits, and others. Fuss, to build an ideal portfolio of funds required a relatively large; my calculations, at least not have to Rp 10 billion.

Mutual funds emerged as a solution to the investor no longer trouble in investing. The difficulty of mepet funds, lack of knowledge and information, lack of time and energy to monitor the portfolio, and other risks can be overcome by mutual funds. As an illustration, Indonesia’s current population of about 230 million people, but the funds collected in the new fund about Rp 60 trillion alone (2006). That means mutual funds still a good vehicle and the potential for investment.

Another articles

• Basic Plan When You Start Investment
• How to Find Best Mutual Funds to Invest