Things to Pay Attention to in Mutual Fund Investment – Nowadays, more and more people are making investments that can benefit themselves when they need it in the future. As we know, mutual funds have become an investment instrument favored by novice investors. There are a number of reasons why mutual funds are an investment instrument favored by novice investors.
The first thing that novice investors should pay attention to and watch out for before investing in mutual funds is the decline in value. This decline in value itself can be regarded as a risk that can occur to all mutual fund investors.
So, why the decline in value can occur? In a statement, the Bank OCBC NISP Wealth Management Team said that the decline in value occurred due to changes in asset prices in it.
The second thing that novice investors need to pay attention to before investing in mutual funds is liquidity. Liquidity problems can occur when the investment manager is late in providing funds for investors to make disbursement payments or redemptions.
Default is the third thing that novice investors need to pay attention to before investing in mutual funds. This risk can occur if the investment manager is unable to pay the coupons and principal that you have invested because of investment losses.
For that, before deciding to invest in mutual funds, it’s a good idea to look for investment manager products and companies that have been registered with the Financial Services Authority (OJK). In addition to minimizing the possibility of default, investment managers registered with the OJK can also prevent novice investors from making fraudulent investments.
4. Economic and political situation
The economic and political situation is the fourth thing that novice investors need to pay attention to before investing in mutual funds. The economic and political conditions of a nation will usually have a direct impact on the investment world, and mutual funds are no exception. If conditions are not conducive, it could be that the value of profits will decrease. On the other hand, if the conditions are good, then the profits you get can also increase.