Generally, there are three types of mutual fund, which is Open-Ended Mutual Fund, Index Fund, and Capital Protected Fund
Open-Ended Fund
The Open Ended Fund is a mutual fund which has no limitation to subscribe or reedem its fund during the bourse day. This fund divided into several types of fund, differed from its portfolio :
1. Money Market Fund
The Money Market Fund requires an investment of a minimum of 80% of its assets in the money market instruments, with a return and lower risk in comparison to other Mutual Funds. This type of fund is specifically designed for conservative investors with targets of achieving a low risk, fixed and regular income, with a minimum investment period of 1 (one) year. The Net Asset Value of this Fund is consistently maintained at Rp.1.000,- wherein your participated funds may reflect changes on a daily basis.
2. Bond Fund
The Bonds Fund requires an investment of a minimum 80% of its asset in Corporate as well as Government Bonds, with a relatively higher return and risk in comparison to the Money Market Mutual Fund. This type of fund is designed for as conservative investors interested in acquiring a minimum growth and willing to accept temporary set backs and decrease in invested capital, with an investment period of 1 to 3 years.
3. Balanced Fund
This type of Mutual Fund presents a freedom to arrange its assets allocation and composition of stocks, bonds, and money market instruments. This fund has a relatively higher return and risks in comparison the Bonds Mutual Funds. The Balanced Fund, having an investment period of 3 to 5 years, is designed for moderate investors who are interested in acquiring a relatively high growth with measurable tolerance of any fluctuations in values of their investments.
4. Equity Fund
This type of Mutual Fund requires an investment of a minimum of 80% of its assets in shares, and is considered to carry most risk tampered a potential to providing the highest investment value growth in comparison to other Mutual Fund products. The Equity Fund and its investment period of more than 5 years is designed for the more aggressive investors who seek higher investment growth in the long term with measurable tolerance to any accept sharp fluctuations.
Index Fund
The Index Fund is another type of mutual fund specifically managed to acquire investment returns in line with a specific index, either bond or stock indices. This fund is similar to open-ended fund, which can be subscribed and redeemed at any time during the bourse day. This type of fund also requires an investment of a minimum of 80% of its assets in model indices, and is known as passive management. The Index Fund is designed for investors who require transparency in their investments, trusting that the passively managed funds will provide better investment returns.
Capital Protected Fund
This type of fund will protect your investment principal at maturity and has a certain time of investment. During the time, you can redeem your investment without any investment principal protection. This type of fund has an offering period, which only allow you to buy during that time. This fund is designed for conservative investors who wants measured investment return on a certain investment period.
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