‘Do not know then do not love.’ This proverb is very thick with how something can affect one`s interest. Without knowing, it will be difficult for a decision to be taken. Just like deciding to buy A product, for example, people can hesitate to decide to buy or not before knowing exactly about the product. For example you will buy a washing machine. Of course you already know what washing machine is, the fungis, the price range, to which can buy it. Likewise with investment, without knowing in advance about investment, people will also tend to do it. Generally, saving- conventional- is the only way to place and save money obtained. There are two types of investment, namely real and non -real (financial investment). For financial investment itself many kinds, ranging from deposits, mutual funds, bonds, and stocks. If you have started to be interested in the name of investment in the financial sector, you can choose an instrument that suits your needs. It means to get to know the risks. For those of you who have never invested in the instrument, don`t be afraid and discourage it just because you don`t know how. One of the investments that can be done for beginners is mutual funds, because it is considered the most easily accessible investment and carried out by novice investors. So what are the right ways to invest in mutual funds for those of you who are beginners without worrying with affordable capital? Check out the tips on investing in the following mutual funds: Understand mutual funds Some people do not know the existence of mutual funds as an easy investment that can be run by beginners. Of course the first thing to know for those who intend to start investing in this instrument is "What is mutual fund?" Mutual funds are a container used by the community to invest in financial market instruments. This mutual fund rule is stated in the Capital Market Law No. 8 of 1995. You don`t need to worry about investing because this mutual fund is because it has been recorded in the government and is official. How to work mutual funds Some of the advantages of mutual funds are the verification of investment, where investment will be broken down to several instruments. So this investment is not only implanted in one company, but in some companies. By working on the mutual fund, then when the value of a stock in company A drops, it does not necessarily immediately invested in this instrument also dropped. But your investment will remain safe because you still have the investment placed in the instrument or other companies by the Investment Manager. In addition to providing considerable returns, mutual funds are also an easily accessible investment instrument. Because this investment has a very large area, you also have to be able to dig up information well. Starting from what is needed, how the plot or journey so that it can be good and developing, and how the possibility or how the advantages and benefits. In addition, information about the term of mutual fund is important. Don`t forget to find that and maximize the information you have. Determine the goal After knowing that the type of mutual fund is very much, then look for and determine your own goals. You must understand the purpose of investing and why choosing mutual funds. Then how much investment do you want to instill in mutual funds? Is your investment for the short or long term? After determining it all, your path will be more well directed according to your needs and what is planned is certainly in accordance with the purpose. Because this mutual fund is broad, you must narrow your space to be more focused and clear. Types of Mutual Funds Next is the type of mutual fund. There are four types of mutual funds that can be your choice to invest money in this relatively safe instrument. Money Market Mutual Funds, where all money is placed in deposits, in the Bank Indonesia Certificate (SBI) and also bonds. Maturity of Money Market Mutual Funds is less than one year. This type of mutual fund also tends to be safer. But back again, because the risk is small, the profits are also relatively smaller. Fixed Revenue Mutual Funds, where funds are allocated to bonds of at least 80%. The benefits are also higher and can reach more than 10% per year. Mixed Mutual Funds, as the name implies, this mutual fund uses various regulations from previous types. Very risky but if successful, mutual funds will produce high and amazing profits. Of course, even if you produce a small or large amount, you as a beginner must be careful in making decisions and making mutual funds so as not to lose money. Protection Mutual Funds or commonly called fixed income funds. Where this mutual fund places some funds in the bond instrument that can provide protection as the name implies. This means that this mutual fund has a lower risk than the stock and mixed mutual funds. Mutual Dana Index, where this type is similar to stocks because this instrument can be traded on the exchange called ITF (Exchange Traded Fund) and the price can fluctuate like stocks. However, this mutual fund usually contains certain indexes that are managed passively, meaning that they do not buy and sell on the exchange unless there are new budgeting or redemption. Mutual fund steps If you have been great to invest in mutual funds, then the first step that needs to be done is to determine what is appropriate and of course seeing financial conditions. If you want a higher profit then the possibility of bad or risk will be even higher. Your courage and decision to bring investment to destruction or success. The next step is to choose a mutual fund product by paying attention to the track record of profits for the last 3 years of the mutual fund. Besides that, how about the customer`s response? Are they satisfied? Things like this can be a reference and also learning for those of you who are confused or do not know what mutual funds and where. You can invest in mutual funds from bank and non -bank financial products. Can even buy on line. Understand the term in mutual fund investment There are many terms found in transaction reports from financial investment, one of which is NAB (Net Asset Value) and UP (Participation Unit). NAB is the amount of funds managed in a mutual fund, and is commonly called an asset under management. Usually this includes cash, deposits, stocks, and bonds. UP is a unit of measure that shows the number of investors owned by investors, or other words are NAB that are broken down into investment instruments managed by mutual funds. NAB/UP is the value of assets per union participation. The definition is the price and transaction carried out based on the value of a mutual fund. Subscription is the cost to buy mutual funds. The cost is usually between 0% to 5%. Redemption is the cost to sell mutual funds and the cost is also between 0% to 5% of the investment value. Prospectus is containing company profile and annual financial statements as a description of the value of the company`s shares. This is usually a reference to determine what type of mutual fund will be chosen. Investment manager is a professional management that manages the placed investment funds. Custodian Bank is a financial institution that is the administrator, supervisor, and maintaining assets from the invested funds. Securities portfolio is a collection of securities including stocks, bonds, and mutual funding units that have been sold. Disbursement transactions are payment or disbursement transactions from some units owned by investors. Of course the one who pays for this is an investment manager instructed to a custodian bank to be given to investors. Switching transactions are the transfer of certain mutual funds to other types of mutual funds by investors. This collective investment contract or contract is a form of mutual funds in the form of a contract between the Investment Manager and the Custodian Bank. Investment Simulation in Mutual Funds As an illustration of what investment in the mutual fund, consider the simulation as follows: For example, Mail has Rp500,000 and wants to buy a "interest" mutual fund worth capital. When the mail bought the "interest" mutual fund, the NAB value per UP 1,000, then he will get: Rp500,000/1,000 = 500 up. After 5 months, it turns out that the NAB per UP mutual fund "Flower" rose to 1,500. Mail then decided to sell all of his participation units (UP), so he would certainly profit because the value of NAB per UP rose. The calculations are: 1,500 (changes to up) x 500 (NAB value from initial up) = Rp750,000 (result of up changes) IDR 750,000 (result of changes in up) x IDR 500,000 (capital) = Plus (+) IDR 250,000 Conversely, when the NAB per UP fell to 700 and Mail decided to continue selling the whole unit, then he would suffer losses. The calculations are: 700 (changes to up) x 500 (NAB value from initial up) = Rp350,000 (the result of changes in up) Rp350,000 (result of changes in up)-Rp. 500,000 (capital) = minus (-) Rp150,000 So, in 5 months the investment mail in the mutual fund can reap a profit of Rp. 250,000 or instead it has a loss of Rp150,000, depending on the position of the NAB value per UP at the time of the sale of the instrument.