Jakarta, CNBC Indonesia – An easy way to assess the high and low prices of mutual funds can actually be done by looking at the net asset value per investment unit (NAV/UP).
For those of you who don’t understand what NAB/UP is, value shows the net asset value (wealth) of a mutual fund, divided by the number of investment units in circulation at that time.
For example, a mutual fund has a NAB/UP value of IDR 1,000, if you intend to buy it with capital of IDR 1 million, then you will get 1,000 UP. Meanwhile, if the price is IDR 1,200, then the total unit you get is only 833.33.
It is clear that the higher the NAV, the more expensive the price of one unit of investment in the mutual fund in question.
According to Financial Services Authority (OJK) regulations, on the first day mutual funds are offered to the public, the NAB/UP set is IDR 1,000, and as time goes by, the NAB/UP price will experience fluctuations in the market due to the increase in the value of the assets underlying the mutual funds. those funds.
One of the factors that determines whether a mutual fund’s NAV/UP will rise or fall is the increase in asset prices in the mutual fund’s portfolio.
So, it is possible that a mutual fund that was launched three years ago has a lower NAV/UP than one that was launched one year because the performance of the assets in its portfolio has also decreased.
So which is the right choice for you? Expensive or cheap? The following is the explanation.
It is more important to know the investment manager’s strategy
There is no good method to measure the fair value of a mutual fund. This is because mutual fund products are a concrete manifestation of the investment management strategy carried out by investment managers.
As stated above, the increase in NAV/UP is due to an increase in the value of assets in the mutual fund portfolio. Therefore, this does not mean that expensive mutual funds will have difficulty experiencing price increases, while cheap ones will actually be faster.
No matter how expensive a mutual fund is, NAB/UP will still increase if the value of the assets in the mutual fund also increases.
Buy newly launched mutual funds
The advantage of buying old mutual funds is that it makes it easier for you to measure their performance historically.
Mutual funds are an investment vehicle, when you invest by buying mutual funds, you have entrusted your funds to be managed by an investment manager.
For this reason, you can measure the performance of these mutual funds with other mutual funds or with a reference index.
So what’s up with the newly launched mutual funds?
In essence, if the product is formulated by an investment manager with a good reputation, then you don’t need to doubt that. With a NAV value per UP of IDR 1,000, you can of course get more units, and this will certainly have a significant impact if your investment goals are long term.
One example is sharia mutual funds STAR Stable Amanah Sukuk which was just launched on November 8, 2023 with a NAV per UP of IDR 1,000. With prices that are still relatively cheap, you will get more UP according to the investment capital you have compared to later the NAV per UP will move higher/more expensive.
Based on the prospectus document for the STAR Stable Amanah Sukuk product, this mutual fund is managed with a minimum investment portfolio composition of 80%-100% in sharia securities such as Sukuk and also 0%-20% in sharia money market instruments such as sharia deposits. In addition, the composition of the securities invested has the lowest investment grade rating of idAA.
You can buy STAR Stable Amanah Fund sharia mutual funds with attractive promos presented by mutual fund distribution partners, such as the Makmur application.
Through the Makmur application, you can buy sharia mutual funds STAR Stable Amanah Sukuk the new one launched. Of course, by buying this mutual fund at Makmur, you can get an attractive promotion, namely an investment bonus of up to IDR 500 thousand.
What are you waiting for, immediately download the Makmur application and start investing in mutual funds.
[Gambas:Video CNBC]
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