Frequently Asked Questions

Mutual Fund is a place to raise funds from the investor community which is then invested back into the securities portfolio by the Investment Manager.

Based on Bapepam Regulations and LK No. KEP-552/BL/2010 dated 30 December 2010, mutual funds in the form of collective investment contracts can only carry out and sales for:

• Effects that have been sold in public offers and/or traded on the stock exchange both at home and abroad;
• The effect of debt such as commercial securities (commercial paper) which has been ranked from the rating company, state debt, and/or debt effects issued by international institutions where the Indonesian government is one of its members;
• Asset -Backed Effects offered through Public Offering and have been ranked from the rating company securities;
• Domestic money market instruments that have a due time of less than 1 (one) year, including Bank Indonesia certificates, money market securities, debt recognition letters, and deposit certificates, both in rupiah and in foreign currencies; and/or
• Domestic commercial securities that are within 3 (three) years and have been ranked by the rating company.

1. Investment diversification.
To reduce investment risk, the mutual funding securities portfolio is diversified to the most optimal level, so that small investors with limited funds can obtain the benefits of investment diversification as well as large investors.

2. Managed by professional staff.
Mutual Fund Portfolio Management is carried out by investment managers who have expertise in the field of fund management supported by complete information and access to market information. Considering that individual investors generally have limited time and access to information, the role of investment managers becomes very important in investing in the capital market and money markets.

3. Potential for growth in investment value.
Mutual funds are a collection of funds from investors that are managed in a directed and accountable manner. So with the accumulation of these funds, mutual funds have a better bargaining power in obtaining a higher rate of return and access to investment instruments that are difficult if done individually. This provides the same opportunity to all participation unit holders to obtain relatively good investment products according to the risk level.

4. Ease of transactions.
Investors can invest indirectly in the capital market/money, without going through complicated procedures and requirements.

5. Transparency of information.
The participation unit holder can obtain information about transparent mutual funds through prospectus, the value of net assets (NAB) that will be announced every day and annual financial statements through the renewal of prospectus every 1 (one) year.

6. Investment costs are relatively low.
Mutual funds are a collection of funds from investors that are managed in a directed and accountable manner. So with this ability, mutual funds will produce transaction cost efficiency. In other words, transaction costs will be lower than if individual investors make their own transactions in the capital market/money.

1. Risk of reduced net asset value
Investments owned by mutual funds can experience fluctuations and risks that are commonly present in securities and there is no guarantee that there will be an increase in value.

2. Wanpretation risk
Investment managers will try to provide the best investment returns to the participation unit holder. But in extraordinary conditions, banks and/or issuers of securities or other parties related to mutual fund investment can be default (default) in meeting their obligations, and this will affect the investment of mutual funds.

3. Risk of liquidity
Investment managers must provide sufficient cash funds to pay for the repayment of the participation unit carried out by the participation unit holder. If together in a short time the participation unit holder sells the investment unit to the investment manager, the investment manager can experience liquidity difficulties to provide the cash immediately. In the event of situations beyond the authority of the Investment Manager (Force Majeure), retailers can be temporarily stopped in accordance with the provisions in the collective investment contract and Bapepam and LK regulations.

4. Risk of coverage for the wealth of mutual funds
Custodian Bank insured all assets/wealth of mutual funds to insurance companies that have a good reputation in ways that are considered good and feasible by custodian banks. In connection with this, the insurance conducted by the custodian bank will only cover a section that is the responsibility of the custodian bank in accordance with its function based on the applicable laws and regulations.

5. Risk of political change, economic and tax regulations
Changes in political, economic and tax regulations as well as other regulations, especially in the money and national and international capital markets, can affect the number of participation units owned by the mutual fund participation unit holder.

6. Risk of exchange rate fluctuations and interest rates
Investments made in mutual funds can increase or decline in value as a result of fluctuations in (i) the exchange rate between the Indonesian rupiah and foreign currencies; and (ii) interest rates between Indonesian and non -rupiah rupiah investments can also cause the investment value to decrease and can interfere with the value of net assets.

1. Money Market Fund
Types of mutual funds that invest in money market instruments that have a maturity period of less than 1 (one) year, such as time deposits, SBI, and Commercial Papers which have high ratings.

This mutual fund has the lowest risk compared to other mutual funds and has an investment goal to maintain liquidity and maintain capital adequacy and get regular yields, so that money market mutual funds are suitable for investors who really avoid risk and have short-term investment goals because Can be sold at any time without having to pay a fine and sales costs.

2. Fixed Income Fund
This mutual fund has a medium risk where its growth is relatively stable and non-fluctuating, because the portfolio focus consists of at least 80% of its assets in the form of debt or long-term bonds issued by the company or government. This mutual fund is suitable for investors who have medium -term investment goals.

3. Balanced Fund
Flexible mutual funds invested their funds on equity, debt effects and money markets according to investment policies from fund managers or according to market conditions at that time. This mutual fund is suitable for investors who have medium -term investment objectives and are willing to accept risks and yields that are slightly greater.

4. Equity Fund
The type of mutual fund that invests is at least 80% of its assets in the form of equity effects. This mutual fund has a high level of risk and high yields originating from the capital gain sales of shares and the distribution of dividends so that it is suitable for investors who are risky-seker-oriented-oriented and not affected by fluctuations in short-term stock prices.

5. Capital Protected Fund
Mutual funds that provide protection for initial investment through portfolio management mechanisms on debt effects that are included in the category of investment grade. The principal value invested will not be reduced even though the NAB is negative because the effect of debt is held to maturity. Investors who invest in mutual funds will still get returns if the managed funds provide benefits.

Manajer Investasi adalah pihak yang mendapat ijin dari Bapepam-LK untuk mengadakan kegiatan usaha mengelola portofolio efek bagi nasabah atau mengelola portofolio investasi kolektif untuk sekelompok nasabah.

The appointed party to represent the interests of investors to oversee the obedience of investment managers towards KIK, is responsible for storing mutual funds assets, carrying out securities transactions according to the investment manager's orders, carrying out mutual fund administration, calculating the value of net assets and maintaining investor data records.

Parties appointed by the Investment Manager to market mutual funds to customers.

• Obtain proof of ownership of Mutual Fund Participation Units
• Resell part or all of the Mutual Fund Participation Units
• Obtaining Mutual Fund reports
• Obtain the right to share assets in the event that the Mutual Funds are liquidated

Tax imposition on Mutual Funds is currently still following SE Director General of Taxes No. 18/PJ42/996 dated 30 April 1006 : "Share of profits (dividends) and redemption of KIK Mutual Fund Participation Units are not taxable".

The total net asset value calculated from the market value of each type of investment asset in the Mutual Fund (stocks, bonds, money market securities, and deposits) plus stock dividends and bond coupon interest, then deducting mutual fund operational costs such as MI fees, Custodian Bank fees , and others.