A mutual fund is an investment vehicle that is made up by a pool of money collected from investors for the purpose of
making trades in a portfolio of securities by investment managers. Since a mutual fund consists of a variety of securities,
one of its advantages compared to other investment vehicles is diversification. Diversification may reduce the risk for
Another advantage to investing in a mutual fund is ease. In addition to helping investors in investment decision-making,
fund managers also frees investors from administrative responsibilities such as transaction settlement & accounting,
risk management, securities trading, and other activities as regulated by Bapepam in the functions required from
To invest in a mutual fund, typically there is a minimum initial investment set. Information regarding the minimum amount
and other important details can be found in the fund’s prospectus
Types Of Mutual FundsHow Mutual Funds Work
Mutual funds can be divided into several categories depending on the asset class they invest in. The main mutual fund categories are:
- Equity Fund
Equity funds invest at least 80% of the portfolio’s value in listed stocks. The typical objective is
long-term capital appreciation.
Equity funds can provide investors with a diversified portfolio for a low initial investment. It has the potential for a high
return, which would be suitable for investors with long-term investment timeline.
PT Panin Asset Management offers two equity funds,Panin Dana Maksima and Panin Dana Prima.
- Fixed Income/Bond Fund
Fixed income or bond funds invest at least 80% of the portfolio’s assets in debt securities. Fund managers may invest in a variety of issuers, such as
the government, government agencies, and corporations. The typical objective is to provide investors with a steady income stream.
Bond funds may be suitable for investors who want potentially higher yields than money market rates. They can be appropriate for investors
with short, medium, or long-term investment horizon. Bond funds are exposed to interest rate risk, a condition where bond prices may decline
due to the increase in interest rate.
PT Panin Asset Management offers two fixed income funds,Panin Dana Utama Plus 2 and Panin Dana Gebyar Indonesia 2.
- Balanced Fund
Balanced funds invest in some combination of equities, bonds, and money market instruments. The typical objective is to provide
elements of income, growth and stability to investors.
Balanced fund typically provide higher potential growth than bond funds with lower volatility than equity funds.
It answers to the needs of investors who are looking to invest in both stocks and bonds through a single investment vehicle.
PT Panin Asset Management offers three balanced funds, Panin Dana Unggulan, Panin Dana Bersama Plus, and Panin Dana US Dollar.
- Money Market Fund
Money market funds invest in short-term debt instruments, including certificates of deposit, commercial paper,
and SBI. These types of funds do not impose subscription or redemption fees. The typical objective is to provide
current income while maintaining liquidity.
PT Panin Asset Management offers one Money Market fund, Panin Dana Likuid.