one seed Online mutual fund trading application It is most popular in Indonesia. There are many mutual funds that you can buy using this application. From money market mutual funds, stocks, sharia to indexes.
This gives investors who use this application a wide variety of investment products to choose from without being monotonous. Investors can be confused about choosing the right online mutual fund product for them.
We talked before. Full Review of Seeds which explores its advantages and disadvantages
Here are some tips from which you can choose mutual funds in the Bibit application:
1. Adjust investment goals
The first tip is to choose an investment tool based on the investment goals you want to achieve. This is because each online mutual fund product has different characteristics.
Money Market Fund (RDPU) For example, they tend to offer lower returns than mutual funds, bonds and bonds. But it is relatively stable and easy to liquidate. Therefore, the NEPC is more suitable for short-term investments or emergency savings.
On the other hand, the disbursement of equity and bond mutual funds usually takes 2 days to a week depending on when you enter a sell order. This means that although both offer higher yields, RDS and RDO are relatively harder to liquidate compared to money market mutual funds (RDPUs).
2. Adapt to the risk profile
When you first open an investment account at Bibit, the application asks you to answer a number of targeted questions to help define your risk profile. And all you have to do is choose the right investment product.
Usually, after answering these questions, Bibit will recommend a package that includes several online mutual fund products based on risk profiles and recommendations from expert advisor tools. If you don’t want to surf the web Choose investment products one by one. You can buy the packages that EA offers.
3. Choose mutual funds from the best investment managers.
In addition to the mutual fund name information In the Bibit application you can also see the name of the investment manager who will manage the future products even if the Seeds are already selected. Products from the best investment managers to be able to list in the application But you should also choose an investment manager independently.
To choose the best investment manager There are several factors that you should pay attention to, namely:
- An investment manager’s track record is both in terms of being able to manage investment funds. as well as in other business matters
- expense ratio The expense ratio is a comparison of all costs that must be incurred by investment managers with income levels. The smaller the value of this ratio is. The more efficient the company’s performance will be.
- Total Assets Under Management (AUM) Indirectly, the size of AUM represents the level of public confidence in the use of the investment manager’s services.
To sort the 2nd and 3rd scores, the Seed app now provides shortcuts to make it easier for you to select MI, but for the first point you need to search the Internet, either through the company’s official website or through various news on the Internet
4. Choose the mutual fund with the best profile.
After you have selected an investment manager You can view each online mutual fund product they offer. and start freely choosing from that side of the product Some of the factors you should consider doing this are:
- Proposed benefit/risk value in each investment product You’ll see the 1-year interest rate (CAGR) in addition to explaining how much profit you’ll get. This variable also describes the level of risk involved in investing in indirect products.
- score drawdownThe drawdown value is the difference between the highest and lowest price of an investment instrument over a period of time. For example, the maximum price for a unit of a mutual fund is Rp 1,500 and the minimum is Rp 1,200, so the withdrawal value is Rp. 300. This indirectly describes the degree of volatility in investment product prices.
- Mutual Fund Allocation Each mutual fund product at Bibit comes with a document called Fund Information Sheet. In this document you can find investment allocations made by investment managers. This investment allocation is especially important for those who want to invest in RDS as some stocks will not benefit from any particular economic climate.
- Custodian Bank is used to collect money from customers. Every bank that offers depository services must be a good bank. Just to save on trading costs You should choose the same escrow bank as the one you use to get your return on your investment.
5. Use a spreadsheet app for notes
You can use a spreadsheet application such as Microsoft Excel or Google Sheets to help you choose this tool. This is because:
- Choosing a record-free investment product will make it difficult for you to remember the profile of each product and the investment manager managing that product.
- with this application You can sort data in descending order.
- You can use this note as a means of evaluating if the performance of your portfolio doesn’t match your expectations.
Make sure that for 1 investment purpose You have chosen several different investment products. The goal is diversification. So when the yield of one product decreases You still have other products.
When can mutual funds be profitable?
One of the advantages of digital investing is that you can profit from this investment over time. According to the author’s opinion You should wait at least until the return on the instrument is Rs 3,500.
This is because there are transfer fees charged by the custodian bank for each mutual fund product. This fee will certainly increase if the bank you use to fund your investments is different from the custodian bank that the investment manager uses to keep clients’ money.