The Fund Information Sheet is one of the documents that must be read before purchasing a mutual fund. This document is usually attached to all available mutual fund products and is updated monthly. However, what is the document? and why is it important Let’s discuss them in the following articles:

in each mutual fund product You will find two documents in the appendix. Both documents are the fund’s prospectus and fact sheet. The prospectus is a document that contains important information related to the relevant mutual funds.

What is Fund Fact Sheet?

Fund Information Sheet (FFS) is a summary of the mutual fund prospectus. as the name implies A fund fact sheet is a worksheet that contains important information about mutual fund products that investors will buy.

Since the form is a sheet, it is easier for investors to read and analyze.

Components of the Fund Information Document and its Meaning

There are several elements in FFS that you should understand. Some of these components include:

1. Information of the mutual fund issuer

The first element is the name of the mutual fund issuer and the relevant FFS issuer. Usually you will see the date and title deed of incorporation. founding date as well as some of the rewards they received

2. Details of the custodian bank

In addition to investment managers, Custodian Bank plays an important role in the success of mutual funds. Therefore, the profile of the company providing this service is also shown in this document.

3. Net Asset Value (NAV)

NAV is the total value of the investment units managed by the investment manager. The NAV value is obtained by multiplying the mutual fund participation price by 1 unit multiplied by the number of proposed participating units. You can find information about the number of units of this participation below the NAV value.

NAV is one of the key parameters investors must consider when buying mutual funds. Usually, the higher the NAV, the more people trust the mutual fund product.

4. Company’s investment policy

in this composition You’ll find the percentage of total NAV invested in a particular product. For example, money market mutual funds (RDPUs) are usually 80% financial products and the remaining 20% ​​are bonds.

5. Maximum holding

As you already know, when you buy mutual fund products. The investment manager distributes your funds across multiple assets at once. This top holding component offers the mutual fund’s largest gaining investment tool.

6. Mutual Fund Performance

In this one sheet you can also view relevant mutual fund price development data for the current year (current year). The company also attaches the price information for the comparison products in the chart.

FFS Index Fund Usually includes the price movements of mutual funds related to the index used as a reference. The goal is to let investors know how the performance of a product compares to the index used as a reference.

7. Cost information

Cost is an important factor in investing in mutual funds. Information on fees that investors can find in this document is Percentage of management fees charged by Custodian Bank investment managers and service fees per year.

For information about expense ratio It is typically displayed on the display of each mutual fund in the mutual fund sales application. A smaller expense ratio value indicates a more efficient investment manager’s performance.

8. Potential risks

This document also contains several potential risks that investors must understand. These potential risks include:

  • The risk of investment value is reduced.
  • Risk from lower investment value due to economic and political recession.
  • Liquidity risk
  • Risks from changes in government policy
Figure 1: Example of mutual fund information

How to make decisions based on mutual fund facts

1. View the graph of mutual fund performance.

In this graph you can find a comparison of mutual fund performance relative to other products. In the example above, for example, the curve compares the product of Sucorinvest Sharia Money Market Fund (SSMMF) and Infovesta Sharia Money Market Fund (ISMMF).

This price comparison information becomes more important when you buy index mutual funds. This is because the greater the difference between the prices of mutual funds and their respective indexes, the less. The better the investment manager’s efficiency, the better. Be grateful if the price movement of this tool exceeds the underlying index.

2. View the highest holding mutual funds

as written above This section shows the instruments that have received the most investment allocation from the investment manager. This is important for you to pay attention to. Because there may be some of the above fixings that you don’t like or you don’t expect to work well.

For example, you want to buy a common stock mutual fund. When I opened the fund fact sheet, it turned out that some of the RDS was invested in the brewing company. which incidentally does not match your Islamic values. From here you can decide not to invest using these mutual funds.

3. View Allocation Elements

For a type of mutual fund There may be differences in allocation between one investment manager and another. This is important because this allocation will affect .more or less Mutual Fund Risk.

For example, Investment Manager A issues RDS A with an allocation of 80% for stocks and 20% for money market products. On the other hand, Investment Manager B issues RDS B with an allocation of 80% for stocks and 20% for government bonds. in general Money market products such as fixed deposits are safe from price fluctuations compared to government bonds. Therefore, it can be said that the risk of RDS B is slightly greater than the risk of RDS A.

4. Look at the cost component.

The cost component also plays an important role. Often, investment managers and Custodian Bank use different management fees and custodian fees. Because these costs will indirectly affect the profit from the investment. You should therefore consider it by comparing the amount of fees that one investment manager and custodian company applies to another.


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