Investor Information

Frequently Asked Questions

What is Mutual Fund?

According to the Law of The Republic of Indonesia No. 8 Year 1995 concerning Capital Market (“Capital Market Law”), especially Article 1 Number 27, Mutual Fund is a pool of fund from investors that are invested into Securities Portfolio by Investment Manager.

What are the risks of investing in Mutual Fund?

Generally, risks of investing in Mutual Fund are:

1. Risk of diminishing of Net Asset Value

2. Risk of changes in economic and political situation

3. Default risk

4. Risk of dissolution and liquidation

Please refer to each fund’s Prospectus for the detail of investment risk.

How do I get information about the performace of a Mutual Fund?
Information about the performance of a Mutual Fund can be obtained from Fund Fact Sheet which contains  a 1-month, 3-month, 6-month, 1- year, and year-to-date performance. 

What is the minimum amount of subscription for investing in Mutual Fund?

With only IDR 100,000,- investors are able to subscribe in Mutual Fund managed by PT Majoris Asset Management. 

How much is the cost of investing in Mutual Fund?

Cost of investing in Mutual Fund is very affordable. For details of the costs, please refer to each fund’s Prospectus.

Is a Mutual Fund subject to tax?
Mutual Fund is not a tax object, but it is compulsory to report it as an asset when it comes to tax reporting.

What is the proof of investing in Mutual Fund?

For every transaction in Mutual Fund you’ve done (subscription, redemption, and switching,), you will get a Confirmation Letter sent by Custodian Bank.

What is a Securities Portfolio?

Securities Portfolio is a collection of Securities owned by a Party as stated in Article 1 number 24 of Capital Market Law. Securities Portfolio here could refer to stocks and bonds in a fund.

What are stocks?

Stocks are shares in the ownership of a company.

What are bonds?
Bonds are debt declaration from the issuer to bondholders, as well as a promise to repay the principal and coupons on maturity date.

What is an Investment Manager?

Referring to Article 1 number 11 of Capital Market Law, Investment Manager is a Party whose business activities is to manage Securities Portfolio for its clients or to manage a collective investment portfolio for a group of clients, except for insurance company, pension fund, and bank who conduct their own business activities based on the prevailing law.

Who can invest in Mutual Fund?
An individual or an institution can invest in Mutual Fund, as long as has completed a know-your-customer process and the required documentations.

How does a Mutual Fund work?

In general, Mutual Fund is set up based on Collective Investment Contract that arranges the duties and responsibilities of the two Parties involved in Mutual Fund:

1. Investment Manager, who is responsible for managing the Securities Portfolio of Mutual Fund;

2. Custodian Bank, who is responsible for carrying out collective custody, safekeeping and administrating Mutual Fund’s asset.

The Financial Services Authority (“OJK”) supervises all activities related to Mutual Fund.

How many types of Mutual Fund are there?

There are two categories of Mutual Fund: Open-Ended Mutual Fund and Closed-Ended Mutual Fund.

An Open-Ended Fund is a type of Mutual Fund that can be subscribed and redeemed in any Bourse Day. On the other hand, a Closed-Ended Fund is a Mutual Fund that can only be subscribed and redeemed in certain Bourse Day.

There are several types of Open-Ended Fund that are familiar in the society: 

1. Money Market Fund, is a Mutual Fund that only invests in money market instruments and bonds that issued with maturity not more than 1 year or has remaining maturity less than 1 year.

2. Fixed Income Fund, is a Mutual Fund that invests at least 80% of Net Asset Value in bonds.

3. Balanced Fund, is a Mutual Fund that invests in stocks, bonds, and money market instruments, each of which at most 79% of Net Asset Value, which in the Mutual Fund’s Portfolio is required to stocks and bonds.

4. Equity Fund, is a Mutual Fund that invests at least 80% of Net Asset Value in stocks. 

What are the benefits of investing in Mutual Fund?

1. Professionally managed

Mutual Fund is managed by professionals who are experts in their fields, hence investment returns could be more optimal in terms of its potential return and risks.

2. Risk Diversification 

By subscribing Mutual Fund, investors directly get access to a Securities Portfolio, not only just one or two instrument(s). With a more diversified portfolio, risk level is relatively lower than directly investing in one or two instrument(s) only.

3. Transparency

Mutual Fund’s Net Asset Value per Unit (“NAV/Unit”) is accessible in various media transparently. Moreover, Fund Fact Sheet also provides information on fund’s performance and investment policies currently undertaken by Investment Manager.

4. Investment growth potential

Securities portfolio in a Mutual Fund has potential to get price appreciation, which could increase Mutual Fund’s NAV.