PORTALJABAR, BANDUNG CITY - Investing in the capital market is one way to meet future needs. Through investment, the money we collect will not be eroded by inflation. However, investing directly in the capital market by buying shares, for example, requires sufficient knowledge and relatively large capital.

Head of the Indonesian Stock Exchange (BEI) West Java Representative Office, Achmad Dirgantara, said that without adequate knowledge, investors could be swept up in the "pom pom" flow of shares, or be carried away by the traps of speculators in the stock market.

"If you want to be an active investor, an investor must master technical analysis. Meanwhile, if the investment needs are long-term, investors must study fundamental analysis," said Achmad, Monday (18/3/2024)

According to Achmad, investors can start investing by buying mutual funds, which are capital market products managed by Investment Managers (MI) in the form of securities companies that have received permission to manage investment funds from the Financial Services Authority (OJK), and have professionals who have received certification as Deputy Investment Manager (WMI).

"MI invests investors' funds in various securities, such as shares, bonds and money market instruments. Mutual fund instruments in mutual fund units can be traded by investors through MI or a Mutual Fund Sales Agent Representative (WAPERD) whose license is owned by a number of banks," he explained.

Therefore, according to Achmad, investors can buy and resell mutual funds through banks or directly through MI. Generally, every mutual fund manager has facilitated investors with an online application to make it easier for investors to buy and resell their mutual funds.

"The price of mutual fund units is relatively cheap, so beginner investors do not need as much capital as if they had to invest in shares on the IDX. The price of mutual fund units when they were first launched was generally worth IDR 1,000 per unit and there was no limit on purchasing mutual fund units. With only IDR 100 "You can even become a mutual fund investor," explained Achmad

There are four types of mutual funds, namely stock mutual funds, mixed mutual funds, fixed income mutual funds, and money market mutual funds. What differentiates the types of mutual funds managed in the portfolio of each mutual fund unit. Each type of mutual fund also has different investment risks and return projections. In this case, the principle of "high risk, high return" applies, namely the higher the investment risk, the greater the potential profit (return).

Mutual fund unit prices can rise and fall following price movements of the instrument that is the underlying asset. Therefore, investors do not need to worry because MI will allocate the funds collected from investors to stocks that have been professionally analyzed. MI also of course diversifies into various stocks, because there is a minimum percentage limit for investing in one type of stock.

Because there are relatively large pools of funds from investors who buy mutual funds, MI can manage risk by having many shares in one investment portfolio.

Achmad emphasized that mutual funds are one of the many investment alternatives for investors who have small capital and do not have much time and expertise to calculate the risks of their investments.

Mutual funds cover three main things. First, there is funding from the investing community. Second, these funds are invested in a securities portfolio. Third, the fund is managed by an investment manager. The funds in mutual funds are joint funds originating from investors and Mi is the party trusted to manage these funds.

"The risks of mutual funds tend to be smaller compared to investing directly in stock instruments, so these instruments are suitable for novice investors. With the existence of mutual fund investment instruments, it is hoped that it can increase the role of local investors in investing in the Indonesian capital market," he said.

MI will place the funds collected from these investors in various investment instruments, such as shares, bonds, time deposits, Bank Indonesia Certificates (SBI), and other securities.

Apart from its role in managing investor funds to be placed in investment instruments, MI is also tasked with monitoring the portfolio it invests in and reporting it regularly to mutual fund investors. The form of mutual fund contract is a Collective Investment Contract (KIK) between MI and the custodian bank. The custodian bank's task here is to store customer funds, so that customer accounts are not mixed with MI accounts.