Types of mutual funds

 

Based on their characteristics, Mutual Funds can be divided into two categories.

First, open mutual funds. An open mutual fund is a mutual fund that can offer the unit at any time up to the maximum limit of the unit offered and buy back the investor's unit at any time.

Second, closed mutual funds. Closed mutual funds are mutual funds where investors only offer and buy back the units offered at certain times according to the stipulated conditions.

Currently, most of the mutual funds circulating in Indonesia are open-ended mutual funds in the form of KIK.

In general, open mutual funds can be divided into four categories based on their investment allocation, namely:

Money Market Funds: This type of Mutual Fund places 100% of its investment in money market instruments, including bonds with maturities of less than one year, deposits, and Bank Indonesia Certificates (SBI).

Fixed Income Mutual Fund: a type of mutual fund where 80% or more of the investment is allocated in securities that provide fixed income, such as debt securities. And 20% on the money market.

Mixed Mutual Fund: a type of mutual fund whose investment is placed in several securities at once, including stocks, bonds and money market.

Equity Mutual Fund: a type of mutual fund where 80% of the investment is allocated to be placed in shares securities.

 

Apart from the listed mutual funds above, there are protected mutual funds, namely mutual funds that have an offering period of a certain period of time which has a special scheme to protect the principal value of investors' investment. Protected mutual funds are suitable for investors who have a conservative risk profile and want more measurable returns within a certain investment period.