Q&A REKSADANA | #REKSADANASERIES

Summary

In this video, Feli addresses common questions about mutual funds (reksadana) and how to choose the right one based on your goals. She explains the different types of mutual funds—money market, fixed income, stocks, mixed, and index funds—and their suitability for different investment horizons. Feli discusses how to approach emergency funds, dollar-cost averaging, and the best times to buy or sell. She also clarifies the difference between active and passive investing, shares advice on how to minimize risk, and highlights the role of technology in investment management. The video offers practical insights for both beginner and seasoned investors.

Takeaways

• 😀 The most common question about investment is which type of mutual fund is suitable for you. The answer depends on your financial goals and timeline.
• 😀 Different types of mutual funds (Money Market, Fixed Income, Equity, Mixed, and Index Funds) suit various goals based on risk tolerance and investment horizon.
• 😀 For short-term goals (less than 1 year), safer options like Money Market Funds or Fixed Income Funds are recommended, while longer-term goals (over 5 years) may be better suited for Equity or Index Funds.
• 😀 Emergency funds should not be placed entirely in mutual funds, as liquidity can take 2-5 days for funds to be available. A combination of bank savings and Money Market Funds is ideal.
• 😀 Dollar Cost Averaging (DCA), or investing a fixed amount regularly, is suitable for volatile assets like Equity or Mixed Funds, as it averages out the cost over time.
• 😀 Lump sum investments are recommended for products with a steady upward trend, like Money Market Funds, which continuously appreciate in value.
• 😀 The best time to buy and sell mutual funds depends on your financial goals, not market timing. Regular investments are better than waiting for the 'perfect' market moment.
• 😀 If a mutual fund company goes bankrupt, your funds remain safe because your investments are held by a custodian bank, not the platform selling the funds.
• 😀 The main difference between Equity Funds and Index Funds lies in management. Equity Funds are actively managed, while Index Funds passively follow market indices, leading to lower management fees.
• 😀 All investments, including low-risk options like Money Market Funds, carry some risk. It's essential to understand that even low-risk investments can have issues like default risks.

Q & A

What type of mutual fund is suitable for short-term goals?

For short-term goals, such as within one year, it's best to invest in low-risk funds like Money Market Funds or Fixed Income Funds (RDPT). These funds are safer but offer lower returns.

Why is it important to align your investment with your goal timeline?

The closer your goal is, the lower the risk of your investment should be. For example, a goal in 1-5 years is suitable for fixed income or mixed funds, while a goal 10 years away could handle higher risk, such as equity or index funds.

Is it a good idea to keep all emergency funds in a mutual fund?

No, it's not advisable. While money market funds provide steady returns, emergency funds should be easy to access in case of urgent situations. A mix of 50% in a savings account and 50% in a money market fund is ideal for liquidity and safety.

What is the difference between Dollar-Cost Averaging (DCA) and Lump Sum investment?

Dollar-Cost Averaging is better for volatile investments like stocks or mixed funds because it averages the cost over time. Lump sum investments work well for funds with steady growth, like Money Market Funds, as they tend to increase consistently over time.

How can I decide when to buy or sell my mutual funds?

It's best to focus on your investment goal rather than timing the market. For example, if your goal is to buy a house in 5 years, you should invest regularly and sell when you reach your target, not based on market fluctuations.

What happens to my investment if the mutual fund platform closes?

Your money is safe because it is not held by the platform itself but by a custodian bank. These banks safeguard your funds, even if the platform goes out of business.

What is the difference between an Index Fund and an Equity Fund?

An Equity Fund is actively managed, with the fund manager selecting stocks based on economic conditions and company performance. An Index Fund, on the other hand, is passively managed, following a market index like the IDX30 or LQ45, with lower management fees.

How do I withdraw the returns from my mutual funds?

To withdraw your returns, you can simply sell the mutual fund units through your platform's app or website. The funds will typically be transferred to your account within 7 business days, depending on the type of fund.

How many mutual funds should I own for a diversified portfolio?

There's no set rule, but it's good to diversify across different types of funds based on your goals. For example, you might have one Fixed Income Fund for short-term goals and one Equity Fund for long-term growth. You can also diversify based on asset size or risk level.

Can mutual funds lose money?

Yes, all investments carry some risk, and mutual funds are no exception. Even low-risk funds like Money Market Funds have risks, such as default risk on bonds. Higher-risk funds like Equity or Index Funds may fluctuate in value, leading to potential losses.