Jakarta, CNBC Indonesia – Protected Mutual Funds are a type of mutual fund that provides protection for the initial value of an investment, as long as the investor does not sell it before maturity.
The specialty of this mutual fund lies in the way it is purchased during the offering period, which is similar to the way Government Securities (SBN) are obtained. The number of protected mutual fund units is limited and adjusted to the debt securities portfolio that is the asset.
Even though it has a maturity date, the investment returns from this mutual fund are fixed income and will be periodically transferred to the investor's account.
So, who should choose this investment instrument? Maybe you are one of the suitable ones. Come on, let's discuss it further.
Have enough cold cash
Protected mutual fund investments are made in a lump sum or one-time payment, unlike money market mutual funds, fixed income, mixed funds, or shares which can be purchased at any time with any specified amount of money.
The greater the capital used to purchase, the greater the regular income you can receive, and vice versa.
With small capital, the returns you receive will not be significant and you may not be able to use it for short or long term goals.
Has an investment strategy that tends to be conservative
Fixed returns are certainly one of the investment characteristics favored by investors with a conservative approach. This approach is suitable to be applied when the stock market experiences high fluctuations.
When you don't know what shares you will buy, you can buy protected mutual funds first to be a place to park your idle funds.
However, be aware that when you sell these protected mutual funds, the protection of your capital may be lost. The sale of mutual funds will of course be accompanied by the sale of bonds which are the underlying assets of the mutual fund.
[Gambas:Video CNBC]
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