- When an investment management company is declared bankrupt, will my funds be gone?
- When a Custodian Bank is declared bankrupt, will my funds be gone?
- Is my investment at GAP Capital secure?
- Do I have to withdraw my investment funds from Mutual Fund, now?
- What is GAP Capital's strategy at this moment?
- In present market conditions, is it possible that the Net Asset Value of a Mutual Fund becomes zero?
- What is a Mutual Fund?
- Why is everyone advised to have a Mutual Fund?
- What are the advantages of investing in Mutual Fund?
- How does the ownership and price of Mutual Fund stocks work?
- What kind of Mutual Fund that you can buy?
- Why is LONG-TERM VISION important in investment?
- How do you choose a Mutual Fund?
- How do you choose an Investment Management Company?
- What will it cost you?
- How to buy and sell?
- Is mutual fund tax deductable?
- Mutual Fund investment (especially in equity funds) is a long-term goal.
- So, what lessons can be taken from Stock Market fluctuation?
- Do you need a big fund to invest in Mutual Funds?
How does the ownership and price of Mutual Fund stocks work?
Mutual Fund ownership comes In a form of stock unit. You, as the investor, have a number of units In the Mutual Fund, depending on the value of your investment. Investors receive part of the returns or losses each time. Every Mutual fund has a stock price known as Net Assets Value, which is the value of every Mutual Fund stock unit. Most Mutual Funds tally their stock prices everyday, or every week.
This is due to the dynamic changes of the stocks in a Mutual Fund's portfolio reflecting the movement of the stock and financial markets. Mutual fund stock prices are determined by dividing the Mutual Fund portfolio's value with the amount of stock being distributed from Mutual Fund.
For example: Mutual Fund ABC has an investment value of IDR 2,000,000.000, while the stock amount that has been distributed is IDR 500,000 pieces, so the stock price per Mutual Fund ABC unit Is IDR 4,000.
Example: Effect of Mutual Fund stock price changing.
In January, you Invested IDR 10,000,000 in a Mutual Fund with a price per unit stock IDR 10,000 so the amount of Mutual Fund stock that you have is 1,000 units.
In March, the stock prices decreased, so the price of the Mutual Fund stock per unit decreased to lDR 9,000. You still have 1,000 stocks but your total investment value becomes IDR 9,000,000.
In June, the Mutual Fund price per unit increases to IDR 11,000, so your investment increases. You still own 1,000 units but total investment value has risen to IDR 11,000,000.