- 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?
What kind of Mutual Fund that you can buy?
In general, all of the Mutual Fund types are similar in their structure, but different in their objectives. Mutual Funds can focus on security and stability, fixed income, or long-term growth. The important thing Is to determine your goal before choosing a particular type of Mutual Fund:
1. Fixed Income Fund: for stability
A Fixed Income Mutual Fund, focused on security and stable returns, Invests in good quality fixed income Instruments, such as Certificate Deposits (CD), Commercial Paper (CP), and bond certificates issued by private corporate, state-own corporation (BUMN), government entities etc. These instruments give higher returns than bank saving but are still conservative. Fixed Income Funds are suitable for those who prefer short-term investment or who don't want to take the risk of losing some of their investment. But big returns cannot be expected If you take into consideration the annual rate of inflation.
2. Equity Fund: for the long-term
An Equity fund is a Mutual fund that invests in stocks listed on the Stock Market, which represent ownership in a company. Equity Funds are suitable for those who prefer a long-term Investment, over several years or decades.
The idea behind Equity Funds is that even though stock prices tend to increase or decrease in the short term, history has proven that Equity Funds provide bigger returns over the long-term than Fixed Income Funds.
3. Balanced Fund: Combination of fixed income stability and long term equity growth.
A Balanced fund Is a Mutual Fund that is invested both in fixed income instruments as well as company's stocks listed on the Stock Market.
This type of Mutual Fund optimizes returns through stock performance on the Stock Market whilst being supported by Fixed Income instruments.