Everyone wants to have a good life. Therefore, in addition to working Many people are still looking for other channels. so that income can continue to generate income In addition to sales One of the best efforts to save money is to invest.
Indeed, after investing doesn’t mean you can instantly become a billionaire. because of investment Of course, there are steps and strategies that need to be put to good use in the future.
One investment tool that is familiar even for beginners is mutual funds. Of course, you already know that mutual funds are a means of raising capital from the public, which are invested in portfolios by investment managers.
You must know that the funds you deposit are managed by the investment manager. While in mutual funds there is not only a long process. one of which is in the form of a joint investment contract (KIK).
Here’s an explanation of what a Joint Venture Investment (KIK) contract means, its benefits and advantages. Watch till the end and you’ll understand more about mutual funds!
Definition of Joint Investment Contract (KIK)
Collective Investment Contract (KIK) is a contract between two parties, the investment manager and the custodian bank, that look after the unitholders. The Unit of Contribution is a measure that proves an investor’s share of ownership in a consolidated portfolio.
In KIK, the power of an investment manager is to control the overall investment portfolio. At the same time, the power of the custodian bank will carry out the collective custody it collects.
A custodian bank is an institution tasked with assisting and responsible for the administration of administrative tasks. security and supervision of financial assets of companies and individuals
The two parties are the investment manager and the custodian bank. Manage the funds you deposit then from that management You will benefit from the investment. the difference is If a general fund can be offered to the general public without a limit on the number of KIK unitholders, especially in this limited investment. There will be a limit on the number of unit holders.
Benefits of Joint Investment Contracts (KIK)
KIK in mutual funds is a deal. Of course, the deal is useful to have.
Here are the benefits of KIK in mutual funds:
- With KIK, it means that the money raised will be distributed to the real development sector. This means that you are directly involved in the development of the real sector in Indonesia. especially in the housing sector
- because it is an investment process You will definitely get a return on your investment. KIK returns are usually higher than investments in other instruments such as bonds.
- It is another option if you want to invest in securities. Moreover, KIK has the best ratings and has a short lifespan. Not only that, it’s definitely safer and less risky. because of the quality credit selection and inspection in the area of origin of the mortgage
Types of Joint Investment (KIK) Contracts
to be clear We are going to talk about the types of KIK. There are 2 types of KIK you need to know, whatever? Let’s keep watching!
1. Joining KIK Ltd.
The first type of participation is KIK Limited Participation. KIK Limited Participation is a method used to collect funds from investors who happen to be professional investors who are able to purchase investment units. not only that Investors must also be able to analyze mutual fund risks.
Funds from these investors will be invested by investment managers in Securities portfolio Or it could be other investment portfolios. that still have a direct relationship with investment projects whether it is the infrastructure sector or the real sector
Judging from the name, you must already know that in this type of KIK, investors have a limit. The minimum limit for investors is 50 and of course they must be professional investors. With KIK limited participation, you can benefit from the management of your funds by experienced and skilled investment managers.
In addition, this return on investment is more competitive because of the same duration. The investment is transparent as well. So you don’t have to worry about the location of your assets.
There are two types of participation in KIK:
- gig real sector with mixed letters or compound securities, such as fixed-term debt instruments, fixed income instruments, etc.
- KIK is specifically for foreign investment such as asset-backed securities. Real estate investment funds, etc.
2. Kik Iba
KIK Equity Equity (EBA) is KIK. This includes financial assets such as mortgages, commercial paper bills. Credit card bills and other government-guaranteed debts
Signing the KIK EBA means that you are investing in the equity market with the type of instrument, i.e. liquidity effect. Instruments with a liquidity impact tend to be easier to trade later.
To be able to own this KIK EBA, you must purchase it directly at investment manager It manages the mutual fund through the custodian bank. Simply put, KIK EBA is when the creditor sends the bill to the bank. The right to collect is transferred. In order for investors to make contributions to buy assets in the first place and receive a refund later.
Advantages of Joint Investment Contracts (KIK)
Each investment tool has its advantages. Some of the advantages of KIK include:
1. As a source of funds and liquidity
With this KIK, funding and liquidity cannot be achieved only by large companies. But it can also be done by small and medium-sized companies or non-investment companies. In this way, the source of liquidity for small companies will no longer be a problem with borrowing. Security Play an important role in the development of small companies.
2. More efficient use of capital
The existence of KIK EBA has increased its balance sheet structure in leverageIn order for the company to be more cautious in using capital, of course, in a rational and efficient way of using capital.
3. Cheaper price
The issuance of a KIK EBA means that costs incurred can be reduced due to an increase in the receivable quality rating. As a result, the supply of cash flow is more secure. Therefore the rate of return is lower. and is very favored by investors. because it has been shown to be safer
Here’s an explanation of KIK, starting with its meaning, benefits, types and advantages. KIK can be an alternative investment option in mutual funds. Suitable for those who like to invest in the real sector, especially the housing sector and others.
No matter which investment tool you choose Of course, there will be no results if you use the wrong strategy.
Therefore, in addition to continuing to invest Still have to learn and develop knowledge deeply in order to earn money. Mutual Fund Investment Benefits greater