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7 Tips for Choosing the Right Investment Manager for Mutual Funds

7 Tips for Choosing the Right Investment Manager for Mutual Funds-When you are going to buy a mutual fund product, choosing the right Investment Manager is very important, Friend Cuan.



Similar to finding a mate, choosing MI is indeed difficult and easy. Therefore, you need to provide accurate tips for choosing MI so that your mutual fund investment can match your expectations.

For that, let's look at the tips for choosing MI in this article, okay?

Investment Manager

However, before heading to the guidelines for choosing MI, it's a good idea to know the role and function of MI for your mutual fund investment.

Investment Manager (MI) is a company or individual that has obtained a business license from the Financial Services Authority (OJK) to carry out fund management business activities. So, your assets and investment funds will be collected in a pool of public funds and managed by them.

MI's credibility in managing these funds certainly plays a major role in your investment performance. In fact, many investors choose mutual fund products simply because of their trust in MI.

Because he manages your investment, of course Mi's tasks are quite a lot. Well, below are the three main duties of an investment manager that you should know!

Main Duties of Investment Manager

1. Manage Assets

The main task of MI is to manage the assets and funds under management that you entrust to it. He will spend your investment funds on various instruments depending on the type of mutual fund you choose.

2. Selecting and Dropping Instruments

When selecting and releasing investment instruments in your mutual fund portfolio, MI has full authority. He does not even need to ask your permission as the owner of the funds to do so.

The sale and purchase of instruments is carried out based on the analysis of MI and his team during the agreed corridor at the beginning. Therefore, he is responsible for the performance of your mutual fund.

4. Find out the Investment Manager's Track Record

MI's track record is impossible to display on the portfolio posted on its official website. But you can cross check to make sure the MI you choose really has integrity and can be trusted to manage your investment.

5. Investment Manager Performance Consistency

Investing in instruments such as mutual funds is ideally a long-term investment, at least three years. You certainly don't want to do cardio for that long as a result of choosing the wrong MI whose performance is less consistent.

So, make sure the consistency of your MI performance is good so that you can live quietly entrusting your funds to the investment manager.

6. Investment Manager Fee Transparency

Another important factor is the cost. Investment managers with large fees are not always the best performers. You can look for managers with relevant and reasonable fees who are able to manage mutual funds reliably and consistently.

In addition, transparency of other costs such as fees and deductions is also important. Remember, this fee will be charged to your investment fund so that the profit value will decrease. Make sure that the return is commensurate with the amount you have to pay.

7. Risk and Return

Your investment manager is the decision maker in managing your investments. He certainly has his own risk appetite, as well as targets and vision for the funds he manages.

You have to make sure that his investment style and risk appetite aligns with yours. That way, you don't have to always question his decision when selling or buying certain assets.

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