MUTUAL

FUNDS
Having professionals managing your money

X Grade
2st Semester
Session 07

PT Sinergi Edukasi Indonesia

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OBJECTIVES:
ü Understanding how Mutual Fund works
ü Know the difference between each type of mutual funds
ü Know how to analyse and invest on mutual fund

CHAPTER DETAILS GUIDELINE

Sub Topic 1 – Barriers to investment

SLIDE 2 - 3
To start the meeting, teachers ask the students "Have you started investing?" If some students
answer that they have not started investing yet, then the teacher then asks the reason, such
as "Why haven't you started investing yet?"

SLIDE 4
There are at least three barriers to start investing.
- Time: Tend not to have much time to monitor the movement of investment values.
- Funds: Do not have large funds to invest, for example to buy 1 lot of Unilever shares
(UNVR) requires funds of more than IDR 500,000.
- Skill: Unable analyse the trend will go up or down to make a decision.

SLIDE 5
Teacher ask students, “What if there is a solution to these barriers for us to start investing?”
- Time: We don't need to monitor it, after we make an investment, we can just leave it.
- Funds: We don't need big funds to invest, only with IDR 100,000 thousand we can
already start to invest
- Skill: We do not need skills to analyse, because this investment will be analysed by
skilled professionals who have been certified.
The answer to all the barriers mentioned is mutual funds.

Sub Topic 2 – Mutual Fund

Teachers are asked to make sure the animation first.

SLIDE 6
Many people have money and want to invest their money in stocks, bonds and time deposits.

SLIDE 7
But, unfortunately, these people do not have the time, large funds, and skills to analyse trends.
These barriers make the person reluctant and afraid to invest

SLIDE 8 - 9
Therefore, the role of the Fund Manager emerges, who will manage investors' funds
professionally because they have been certified to analyse these investments. Investors only
need IDR 100,000 to invest. This type of investment is called a mutual fund, where the product
is related to:
- Stocks: known as equity fund
- Bond: known as fixed income fund
- Time deposit: known as money market fund (it also includes near-maturity bonds)

Session 07 / X Grade 2nd Semester 2

 - Mixed: a mutual fund that mixes investments between stocks, fixed income and money
market fund
To buy Mutual Funds, you don’t go straight to the investment manager that created the mutual
fund. Instead, you go to APERD (Agen Penjual Reksa Dana) or translates to Reseller of
Mutual Funds.

SLIDE 10
To become an APERD, you must have authorization from the OJK as a mutual fund reseller.
To buy through APERD can be done by:
- Banks: such as BCA, Danamon, OCBC, Maybank, Bank Mandiri, CIMB Niaga, etc.
- Special applications: for example like Bareksa, Seeds, Magic, etc.
- Market Place: Nowadays you can also buy Mutual Funds in marketplaces like
Tokopedia and Bukalapak.

SLIDE 11
Fund Managers also Known as Manager Investasi (MI), is also easy to spot. Their company
names usually have “Asset Management” in it. These are some of the examples:
- Sucor Asset Management
- Kresna Asset Management
- Ciptadana Asset Management
- Capital Asset Management

SLIDE 12
Based on risk and return, the following is the order of the types of mutual funds from low risk
and low return to high risk and high return:
- Money Market Fund
- Bond Fund
- Mixed Fund
- Equity Fund

Sub Topic 3 – How to buy and things to consider when buying mutual funds

SLIDE 14
Of the several APERDs that have been described, we recommend buying mutual fund
investments through the application. This is due to several advantages:
- Instant opening account: Account registration can be done via handphone
- Robo Advisor: For some applications, there is a robo advisor feature that can provide
mutual fund recommendations based on the risk profile
- No commission fee
- Payment can be done with E-Wallet: can be done with Gopay, ShopeePay, LinkAja

SLIDE 15
For example, we will explore an Bibit application for buying mutual funds. We will identify more
deeply before making a mutual fund purchase:
1. What to analyse
2. Transfer money to Fund Manager
3. Fund Manager’s Portfolio
4. What else do I need to know

Session 07 / X Grade 2nd Semester 3

SLIDE 15 - 16
When registering, we must fill in some questions regarding risk, the purpose is as our risk
profile, so it is better to be honest. The results of the risk profile will be a robo suggestion in
Bibit by combining all types of mutual funds.
If the suggestion from robo doesn't suit you, you can choose the mutual fund you want to buy
yourself.

SLIDE 17
The first thing we will learn is "what to analyse" from buying mutual funds

SLIDE 18
For example, we take Money Market Fund from Sucorinfovest

SLIDE 19
The following is a graph of the movement of NAV for time series data for 5 years.
Above the graph we can also see the NAV and

NAV is Net Assets Value. Simply put, there is a stock price in stocks as the buying price for
investors, in mutual funds there is NAV as the net price for investors to buy. . This price is
recalculated daily.

SLIDE 20 – 23
- CAGR: Compound Annual Growth Rate (CAGR) is the average annual growth rate of
the price of a mutual fund over a certain period of time. CAGR also reflects the average
profit per year that can be obtained from a mutual fund. (CAGR 5Y) is the average
annual growth rate of a mutual fund over the last 5 years.
The higher, the better à The higher the CAGR value describes the growth that is
trending up
- Drawdown: Max Drawdown is the maximum drop of a mutual fund from a high point to
a low point, before a new peak is reached during a certain period. Max Drawdown is
an indicator of the downside risk of a mutual fund over a certain period of time to
provide investors with an overview of the declines that have occurred during that
period. If the Max Drawdown of a mutual fund is 0.04% in 5 years, it means that the
mutual fund has experienced a maximum decline of 0.04% from its highest point in the
last 5 years.
The closer to 0%, the better à The decrease is getting smaller
- The Expense Ratio: Fund Manager's expertise in managing mutual funds for investors
in an efficient manner.
The smaller, the better à our funds are managed more efficiently
- Total AUM: Total Assets Under Management is an amount of funds managed in a
Mutual Fund product.
The bigger, the better à Fund managers are more credible for investors to manage
their funds

SLIDE 24
The second thing we will learn is "Transfer money to Fund Manager”

SLIDE 25

Session 07 / X Grade 2nd Semester 4

In the details below there are details for the minimum purchase of mutual funds, in this
example it is IDR 100,000 and there are no buying and selling fees.
Furthermore, there are custodian banks and holding banks.
- Custodian Bank: where Fund Manager manages our money
- Holding Bank: where we deposit our money into & withdraw our money from
Tips: Avoid Transfer Fee by Matching Your Bank account with Holding Bank

In addition, it is also equipped with a mutual fund time machine that will calculate your funds
in the future, with a CAGR at the moment you view this portfolio.

SLIDE 26
The third thing we will learn is "Fund Manager’s Portfolio”

SLIDE 27
In mutual funds, investors' funds will be invested into several products with the aim of
diversification. For details of diversification, see the explanation below. It is important for us to
know where our money are being allocated to

SLIDE 28
The following is an example of a Money Market Fund portfolio with details of corporate bonds
less than 1 year and time deposits

SLIDE 29
The following is an example of a Bond Fund portfolio with product details are corporate bonds
and government bonds

SLIDE 30
The following is an example of a Equity Fund portfolio with majority of the products are stocks.

SLIDE 31
The following is an example of a Mixed Fund portfolio that mixes investments between stocks,
fixed income and money market fund

SLIDE 32
The fourth thing we will learn is "What else do I need to know”

SLIDE 33
For additional information, you can see the list of products available for switching based on
the same Fund Manager. Completed in a maximum of 2 working days, no more money deposit
and no switching fee.
Prospectus: provide detailed information related to investment offers to the public.
Fund fact sheet: Monthly reports submitted by investment managers

Sub Topic 4 – Assignment

SLIDE 34
Students are asked to work on a report that contains: Research and analyse which are the
best mutual fund products (fund manager) of each mutual fund types.

Session 07 / X Grade 2nd Semester 5

Students are expected to analyse using the ratios that have been taught and this assignment
will also be used for the final exam

SLIDE 35
To get extra points in the final exam, students can do:
1. Open any Mutual Fund Account (recommended: “application”) --> still allowed if
opening through a bank or marketplace
2. Buy Mutual funds (any type, any amount)
3. Starting to invest
Students submit a brief report about why and when you buy it and the proof of your transaction.
Submit it by the latest of one week before Final Test.

Session 07 / X Grade 2nd Semester 6