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History
of Mutual fund
Mutual Funds were first introduced to the
American society in the nineteenth century. It was originally known
as “Stock Trust” that was translated as “funds for one
investment goal”, whereas, In England, it was known as “Unit
Trust”. Embarked on the early stage definition of mutual funds’
investing in mutual funds means investors’ asset is presented in a
form of units that is administered by other qualified individual.
In Indonesia, mutual fund known as Reksa Dana, was
first introduced in 1995. Currently there
are more than 250 reksa dana offered.
What is Reksa Dana?
Reksa dana is a pool of money, managed and invested
by investment managers. There are varieties of Reksa dana ranging
from money market, bonds, equity and balance mutual funds and other
innovative mix of capital market instruments to meet the
investors’ investment objective.
The concept is straightforward. Fund from investors
with the same investment objective is pooled collectively.
Investment manager, a qualified licensed individual, manages the
pooled funds by allocating funds to the range of products in capital
market, for instance money market, stocks (equity), bonds, and so
on.
Who is Investment Manager?
The responsible entity must be licensed under BAPEPAM
(Badan Pengawasan Pasar Modal) to carry on a financial services
business, such as managing investment portfolio for investors or
managing a collective investment for a certain number of
individuals.
How
to choose Investment Manager?
Assessment
is based on following:
1.
Trust/
Reputation
Company’s reputation and supports from its group of
companies and/or shareholders.
2.
Experience
The time span of existence in the financial markets
as a portfolio manager reflects its ability to withstand shocks in
the volatile capital market industry and continues to operate as a
business entity. Short-term performance is not a basis for future
achievement.
3.
Stability
and Past performance
Track records its past performance and observes how it has performed
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