Types of Mutual Funds Online, for Learning Investment, Easiest and Most Trusted

Currently, the investment market is moderate booming among Indonesian people. Many invest, both individuals and companies.

There are various reasons they invest, such as saving for the future, earning income, increasing wealth, fighting inflation, achieving financial goals, and others.

In the past, many people thought that investment could only be made by big companies. And if someone wants to invest, the procedure will be complicated.

But now that problem has been resolved. Because now anyone can invest and get great benefits that they will get.

Mutual funds are a popular type of investment vehicle among today's society. Because, anyone can invest in mutual funds easily. Also, the tantalizing benefits make many people invest in mutual funds.

Let's get to know mutual funds first before going any further.

Understanding and Benefits of Mutual Funds

A mutual fund is a type of investment that allows individuals to invest in a diversified portfolio of stocks, bonds and other securities.

Basically, mutual funds pool money from many investors and use it to buy a mix of different assets. These assets are selected and managed by professional investment managers who work to maximize returns on funds while minimizing risk.

One of the main benefits of mutual funds is diversification. Because mutual funds invest in a variety of different assets, they carry less risk than investing in individual stocks, which can be subject to significant fluctuations in value.

By spreading their investments across multiple securities, mutual fund investors can reduce their overall risk and potentially earn more consistent returns over time.

Types of Online Mutual Funds

One of the reasons why mutual fund investments are widely used by people today and are spreading very quickly is because of the investment system that can be done online online.

You don't need to go to a company that may be far from home, prepare lots of documents, or set aside your precious time to invest.

Because just by relaxing at home, you can already do the following types of mutual fund investments:

Money Market Mutual Funds

Money market mutual funds, also known as money market funds, is a type of mutual fund that invests in money market products. This type is designed to provide investors with low-risk, short-term investment options.

The advantages of this money market mutual fund are that it is tax-free, can be disbursed at any time without any fees, and is easy to get in applications that provide mutual funds. online.

Fixed Income Mutual Funds

Fixed income mutual funds, also known as bond mutual funds, are mutual funds that invest a minimum of 80% of their portfolio in bonds. If you want to find a type of mutual fund that can meet your financial goals in 1-3 years, then this fixed income fund is the right answer for you.

The advantage of this bond mutual fund is that it can be disbursed at any time, even with a small nominal value return which is relatively high, namely 7-10% per year.

Stock Mutual Funds

Stock mutual funds are a popular type of mutual fund because they are promising return high and has potential profits. However, they are also at high risk because of their large investment in stocks.

This type invests in company shares listed on the Indonesia Stock Exchange (IDX) or foreign stock exchanges. This fund has a stock portfolio of many companies, and returndepends on the company's performance. Thus, the value of mutual funds will go up or down depending on how well the companies in the portfolio are performing.

Online mutual fund application

Some people would imagine investing is a complicated thing, but with the emergence of mutual fund applications online, they give investors easy access to a wide range of mutual funds and help them invest from the comfort of their own home.

Mutual fund application online are becoming increasingly popular due to their convenience, accessibility, and ease of use.

The following is an example of a mutual fund application online:

Seeds

Seeds is a mutual fund application online which is popular in Indonesia, especially for beginners. This application offers features "Robot Advisors" which assists investors in selecting mutual funds based on their income, investment goals, and personality traits.

With Seeds, investors can rest assured that they are making the right investment decision and will not choose the wrong mutual fund. You can get to know Seeds more deeply at Bibit.id.