Mutual Fund
Bank CTBC in collaboration with several leading Investment Managers (MI) in Indonesia provides a wide selection of Mutual Fund products that suit your profile and risk tolerance as well as your investment needs.
Definisi
Mutual Fund is a bucket for collecting funds from the Investor community to be further invested in a securities portfolio by the Investment Manager (MI) which is formed based on the Collective Investment Contract (KIK) between MI and the Custodian Bank [source: Capital Market Law no. 8 of 1995 Article 1 Paragraph 27].
Mutual Funds are pure investment products with the form of ownership by the Customer in the form of unit participation from their own funds managed by fund manager (MI) in stocks, bonds or money market instruments.
Advantages and benefit
Asset Allocation Diversification
With Mutual Funds, a large amount of Collective Funds will be collected by fund manager so that it will facilitate the diversification and flexible allocation of investment funds belonging to the Customer/Investor in a wide selection of products, namely money market instruments, fixed income/bonds, balanced and/or stocks . Investors with limited funds can still diversify their investments in Securities and minimize risk. For example, an Investor with limited funds can have a portfolio of bonds, which is impossible without large funds.
Effective Investment Return
Mutual Funds allow management and monitoring of investment fund performance by fund manager in a professional manner according to Prospectus and the investment objectives of the Customer/Investor to achieve the investment return target. Determining the right choice of investment product to buy in the capital market requires its own knowledge and expertise, where not all investors have this knowledge. Fund manager's role is very important in terms of research, analysis of securities prices, as well as direct access to information on the capital market.
Cost Efficiency
Mutual Fund is a collection of funds from many investors so that it will result in efficiency in transaction costs. Whenever the Customer/Investor requires cash, the Participation Unit can be redeemed and fund manager is required to purchase it and pay it for a maximum of T+7 trading days.
Time efficiency
Mutual Fund transaction services can be done easily through CTBC Bank as Selling Agent of Fund Manager ( MI ). By opening a savings account at Bank CTBC, the Customer can then conduct Mutual Fund transactions according to the profile and risk tolerance chosen.
Transparency of Investment Return Report
Disclosure of information on the composition of Investment Instruments and the performance of managed funds. Fund manager is required to regularly provide information on investment developments so that the Customer/Investor as the holder of the Participation Unit can monitor the placement of funds, performance and risks. Fund manager is required to announce unit price information or Net Asset Value (NAV) every day in newspapers and publish financial reports, prospectuses, and monthly reports (Fund Fact Sheet).
Tax Benefits
Mutual Funds redemption (redemption) Investment returns received by Customers/Investors are not tax objects. In accordance with the tax law Number 46 of 2008 concerning Income Tax (PPh), Article 4 Paragraph 3.
Potential Risks of Investing in Mutual Funds
Risk of Decrease in Participation Unit Value
Potential risk of a decline in Securities Portfolio Prices and Net Asset Value (NAV) included in the Mutual Fund portfolio, among others, as a result of changes in market conditions (interest rates, inflation, etc.), as well as default of the issuer of securities (shares, bonds, and other securities).
Liquidity Risk
The potential risk arises regarding the difficulties faced by the Investment Manager in providing cash as a result of the simultaneous redemption of all or most of the Mutual Fund Participation Units by most of the Participating Unit holders.
Default Risk
This is a potential risk that occurs because the parties involved in a Mutual Fund transaction are unable to fulfill the obligations stated in the contract to other related parties, thus potentially causing a loss of investment value.
Risk of Political, Economic and Law Change
The realization of Mutual Fund returns is also influenced by the potential for Risk arising from changes in economic and political conditions at home and abroad or regulations in the Money Market and Capital Markets (not limited to tax regulations) which primarily affect the performance of listed companies on the Stock Exchange as well as companies issuing securities on the Money Market.
Liquidation Risk
Risk of dissolution of the Mutual Fund by the capital market authority or the Financial Services Authority (OJK) if the NAV of the Investment Fund is less than the minimum amount determined in accordance with the Prospectus and regulation.
Risk Profile and Investment Target
Conservative (Risk Averse)
Pay attention to the security of the principal value of the investment to maintain current capital and income;
Willing to accept products with low risk, low volatility and returns that can offset the impact of inflation in the short to medium term;
Tend to avoid investment risk;
Choosing short-term investment instruments.
Moderate
Nasabah mencari keamanan terhadap total akumulasi kekayaan pada portofolio yang berimbang;
Bertujuan pada pertumbuhan investasi dengan risiko investasi yang rendah sampai tinggi;
Memilih instrumen investasi jangka menengah.
Moderate aggressive & Aggressive
Investments are aimed at seeking a high rate of return on the total accumulated wealth in a portfolio with a rapid growth rate;
Tolerant of investment risk and willing to choose the product with the highest level of risk
Choose short-term to long-term investment instruments.
Type of Investments
Money Market Funds
Type of Investment: 100% in Debt Securities in money market instruments such as Time Deposits, SBIs (Bank Indonesia Certificates) or Bonds with maturities of less than 1 (one) year;
Investment objectives: maintain liquidity and capital with relatively stable returns, not fluctuating;
Investment Risk: relatively smaller than other types of Mutual Funds;
Liquid, easy to liquidate in general T+2 (2 exchange days after the disbursement instruction);
Purchase and Selling Fees: none.
Fixed Income Funds
Type of Investment: Minimum 80% of assets are invested in Debt Securities, generally in bonds (debt securities issued by companies or the Government);
Investment objective: obtain a stable rate of return
Investment Risk: relatively higher than Money Market Mutual Funds;
Suitable for investors who have medium-term investment goals (1-3 years);
Some Mutual Funds of this type have a profit sharing mechanism ( dividend ) in the form of cash or additional participation units which are distributed periodically.
Equity Funds
Type of Investment: Minimum 80% of assets are invested in stock instruments ( Equity );
The growth potential of this type of investment is relatively high with high risk and high returns;
Investment options for investors who have long-term investment goals (above 5 years) and have an Aggressive risk profile.
Protected Funds
Provide protection on the Initial Investment Value of the Participating Unit holder Investor so that the return is more guaranteed and measurable within a certain investment period
Type of investment: Debt Securities in the investment grade category, so that its value at maturity can at least cover the protected Initial Investment Value;
Term and Conditions
The customer has a Savings and/or Current Account at Bank CTBC
The number of purchases / sales according to the Prospectus of each product from MI or the minimum number of purchases:
First time Rp. 10 million
The customer is required to fill out and sign the “Transaction form” and “Risk Profile Questionnaire” at the CTBC Bank Branch Office by attaching a photocopy of a valid ID card
Deposits/transfers of purchase funds and fees are made by the Customer before 12.00 WIB.
Saving Investment Plan: with this system, Customers can place their funds periodically in Mutual Funds without the need to make a subscription transaction at the CTBC Bank Branch Office. The process is carried out via auto-debit of the Customer's Savings Account on the Exchange Day according to the amount and date that has been determined at the beginning of the purchase.
Important Information
Optimizing investment returns through Mutual Funds can be achieved by setting appropriate investment strategies and managing and minimizing potential investment risks that will arise. Follow some important information for the Customer as an Investor.
Prior to making a purchase transaction (Subscription) Investors are required to read, study and understand the Prospectus and fund fact sheet from the Investment Manager for each type of Mutual Fund product that will be owned. The past performance of investment instruments is not indicate future performance.
The main factors to determine for consideration are::
Specific Investment Objectives.
Time horizon to achieve the end result of the investment objective.
Risk Profile that affects potential investment returns..
High Risk – High return
Low Risk – Low Return
Asset Allocation and instrument diversification to obtain an optimal investment portfolio.
Periodic Review of the investment portfolio to maintain the expected rate of return.
Mutual Funds are Capital Market products, not Bank products, so they are not guaranteed by the Bank and are not included in the scope of the government's deposit guarantee program.
Bank CTBC acts as the Selling Agent of Mutual Funds and is not responsible for any claims and risks that occur in the Investment Manager's Investment Fund portfolio management.
Investment Manager
Investment Manager (MI) is a party whose business activities are managing a Securities Portfolio for Individual Customers or a Collective Investment Portfolio for a group of Customers*). Bank CTBC acts as a Selling Agent distributing Mutual Fund products to customers from Investment Managers.
