04 Mar 2024 | Edukatips

No Need for Big Capital, A Small Investment Goes a Long Way

Do you want to have an investment portfolio with minimal capital? Is it possible? Yes, it is! Investing nowadays can be done with a small amount of money. Before we go on to explain more about investments with affordable capital, let’s first get to know the Welma feature from BCA.

Welma is an investment feature available on myBCA. Through this feature, you can make various investment product transactions, such as Mutual Funds, Bonds & Government Securities, both Primary Market and Secondary Market. On top of that, you can start investing from as low as 10,000 IDR! Yes, with a starting capital of 10,000 IDR you can already invest in Mutual Funds via the Welma feature on myBCA.

Now, before you start investing in Mutual Funds, let’s learn about what Mutual Funds are.

Mutual Fund Definition and Characteristics

In a nutshell, a Mutual Fund is a pool money collected from investors to be professionally managed by an investment manager. These funds will then be invested in securities such as money market instruments, bonds, and stocks.

To illustrate, when you buy food, the food is processed by the seller and you receive it in a ready-to-eat form. Similarly, with Mutual Funds, the investment capital you provide is managed by the investment manager and you obtain the returns.

So, it is possible to invest in various investment instruments including company stocks with affordable capital through mutual funds. In addition, Mutual Funds are not a tax object meaning that the returns are not subject to tax deductions.

From the explanation above, Mutual Fund is a suitable investment option for anyone, especially for investors who:

  1. do not have special expertise in economics and finance
  2. do not have much time to monitor economic and market movements
  3. want to invest with little money in many instruments at once

Types of Mutual Funds

Now let’s find out how to choose the right type of mutual fund to achieve your investment goals. For that, it is important to know the following types of Mutual Funds:

  1. Money Market Funds (RDPU)
    • Low risk, you can avoid significant fluctuations
    • 100% money market instruments (deposit and bonds with maturity <1 year)
    • Liquid (easy to liquidate), suitable for liquidity needs and short-term investment goals
  2. Fixed Income Funds (RDPT)
    • Low to medium risk level due to bond price movements in the Secondary Market
    • At least 80% of fixed income instruments (short to long-tenor bonds)
    • Yields are relatively stable due to regular coupon payments from bonds
  3. Mixed/Balanced/Hybrid Funds (RDC)
    1. Risk level slightly above medium or moderate
    2. A maximum of 79% consists of money market, fixed income, or equity instruments
    3. Diversified portfolio, optimizing potential returns while minimizing risk
  4. Equity Funds (RDS)
    • High risk level or suitable for aggressive risk profile and long-term investment
    • At least 80% of assets in equity
    • High growth rate but also high volatility

Let’s invest in Mutual Funds through the Welma feature on myBCA. For more information, you can check here. Don’t miss other investment promos, check here.