The world of investment began to be in demand by many people. In a pandemic condition like this, investment is one of the new "hobbies" that are quite popular, including at a young age. One of the types of investment in mutual funds. Simply put, a mutual fund is an investment package whose management is carried out by an investment manager.

The ease of investing in mutual funds makes some people choose to invest using mutual funds. Before going further into mutual funds, let's first know some types of mutual fund investments.

1. Money market mutual funds

Money market mutual funds are short-term investments usually lasting less than 1 year. This type of investment has a lower level of risk, small investment capital, and is easy to disburse. However, this type of investment has uncertain and small returns. Examples of these investments are current accounts, retail bonds, and time deposits.

2. Fixed income mutual funds

This mutual fund has a longer maturity period of more than 1 year. Simply put, interest on debt securities is not given to investors but is used to increase the investment value of mutual fund customers so that the price increases.

3. Mixed mutual funds

If the two mutual funds above invest in debt securities, then in mixed mutual funds, investment funds are carried out in three ways, namely stock investment, bonds (bonds), and money market. The advantage is that when one portion of the investment loses, the other portion will make a profit. In practice, if the stock is unstable then the investment will be focused on debt securities or the money market.

4. Stock mutual funds dana

Stock mutual funds are carried out for a long period, namely 5-10 years. The level of risk is also higher with the level of potential profit when compared to other mutual funds. The advantage is that the investment will be spread to various types of sectors or stock industries or is called diversification to minimize losses.

After knowing the types of mutual fund investments, also make sure when choosing an investment manager or manager is an institution that has obtained a license certification from the Financial Services Authority (OJK). Adjust the type of mutual fund you choose with your investment needs because all of these types have their advantages and disadvantages.

Source: cnnindonesia.com