Easy Mutual Fund Investment Guide for Beginners in 5 Steps

Mutual fund investment is the most promising alternative for those of you who want to invest but only have minimal capital. Previously, we have discussed the introduction of mutual funds.

Now is the time for you to learn to start investing with mutual funds. Are you confused about how to get started? Don't worry, we've made an easy way to invest in mutual funds for beginners. Come on, don't miss the info!

Determine the Investment Goal and Time Period

Maybe many people make financial freedom their goal of investing. However, given the necessities of life, bills, achievement targets, you must be able to determine priorities. In this case, determine the goals you want to achieve and how long to invest in mutual funds.

For example, in 5 years, you want to use the investment results of the mutual fund for capital to build a house of IDR 50 million. An easy way to determine goals is to answer the elements “how much is the amount”, “for how long”, and “for what”.

Choose the Type of Mutual Fund that Fits the Purpose

After determining the goal, choose which type of mutual fund is suitable and possible to achieve the predetermined goals. If your target is short term, then choose mutual funds with low risk such as money market and fixed income funds.

However, if you want to reap the rewards in the long term, like the example above, then it's better to choose a mutual fund with return such as equity and mixed mutual funds. If you are a Muslim, you should also learn the elements of sharia and the procedures for investing in sharia mutual funds for beginners.

Do Research and Choose the Best Mutual Fund Platform/Application

After determining the type, do research on the party you will use to arrange mutual funds. Choose a place that can offer the best mutual fund investments. You can choose between partner banks, investment managers, or marketplace mutual funds.

If you use the services of an investment manager, usually you will get Privilege to be able to see market to increase knowledge. If you are with a partner bank, you will be offered a program from the relevant bank, for example, to encourage you to be consistent in investing. If you want to be more independent, you can use marketplace mutual funds.

Understand the Mutual Fund Product Prospectus

The prospectus can be said to be manual book to start investing in mutual funds. You can access information about licensing, investment managers, investment policies, investment costs, up to procedures for selling/buying mutual fund investments online.

In essence, you can get all investment mechanisms from the prospectus. After choosing the best mutual fund product, you need to check the prospectus for comparison. For example, for product A, the minimum purchase is IDR 100.000, the minimum top-up is IDR 100.000, and a 1% purchase fee is charged.

Meanwhile, the minimum purchase for product B is IDR 200.000, the minimum top-up is IDR 50.000, but there is no purchase fee. Well, differences like that of course become your own consideration to buy which product is included budget

Buy and Monitor Mutual Fund Products

After doing these four steps, the next step is to buy the product that you have chosen. Follow the registration method on the platform/application you choose. Usually by including an ID card or NPWP.

Don't forget to monitor the mutual fund products you have purchased for at least 2 weeks after purchase. Don't worry about the value because mutual funds are investment instruments that are not too volatile.

That's an easy way to start investing in mutual funds. I hope this information is helpful!

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