Types of Mutual Funds

1. Types of Mutual Funds

The table above is a general perspective, the most important thing is to set goals and your time before choosing a mutual fund.

Keep in mind that not all equity funds have risk and return which is greater than the mutual fund, as well as for other types of mutual funds.

In addition to the types of mutual funds above, there are still other types of mutual funds such as index mutual funds and ETF.

2. What is a Money Market Fund?

Money Market Mutual Fund is a mutual fund investment allocations in the majority of money market securities, such as the SBI (Bank Indonesia Letter), the debt is less than one-year deposits, time deposits and savings.

3. What is Protected Fund?

Protected funds are mutual funds that are determined by the time of purchase and sale of the MI issue can only be done after a certain period of time. If you make the sale before the allotted time period will be subject to substantial pinalty.

4. What's Fixed Income Investment Fund?

Mutual funds that invest at least 80% allocation in fixed income securities, such as debt securities (whether debt of state / government securities or corporate bonds) with maturity more than one year.

5. What is a Mutual Fund Mixture?

Mutual fund allocation is a combination of equity securities (stocks) and debt securities (bonds) in which each effect no more than 80%.

6. What is a Mutual Fund Shares?

Mutual fund investment allocations at least 80% of the portfolio to equity securities (stocks).

7. What is a Mutual Fund Index?

Mutual funds are index mutual funds portfolio composition arranged to resemble a particular index, so the return will be equivalent to the index it follows.

8. What Is Mutual Fund Type of ETF (Exchange Traded Fund)?

ETF is a mutual fund in the form of a Collective Investment Contract that its shares are traded on the stock units as well as stock, and performance based on a particular index, can be a stock index or bond index. The unit holders ETF investors can easily trade in the stock unit at any time during trading hours.

One example of a mutual fund is an ETF LQ-45. Although the price of an ETF can be known immediately when purchased and the purchase was made during the stock (not through MI) but that does not mean that the ETF shares, the ETF is different from stocks, this ETF has the same principles of diversification with mutual funds.

9. How Many Mutual Funds existing product?

Mutual fund products in Indonesia until the end of 2007 there are 446 mutual funds. While mutual funds rose in the year 2007 alone there are 100 mutual funds.