Saturday, March 2, 2019

Return On Investment Banking

Return On Investment Banking

Return On Investment Banking | Unlike the banking products that will record all public funds in financial accounting, investment funds in mutual funds accounted for separately from the accounting firm of investment managers and custodian banks. Why is that?

Return On Investment Banking | This happens because the mutual fund is a separate legal forms. The establishment conducted by investment managers and custodian banks based on notarial deed and shall have compulsory basic bookkeeping and tax number (TIN).

Return On Investment Banking | In the event of bankruptcy, you will receive back the funds held in bank of the payment by the Deposit Insurance Corporation (DIC) to a particular value or from the liquidation of assets.
Return On Investment Banking | While the mutual fund, if the investment manager or custodian bank to go bankrupt, mutual fund investors will receive back its investment funds in accordance with the net asset value (NAV) / last unit.

Return On Investment Banking | Alternatively, the management or administration of mutual funds are transferred to the investment manager or other custodian bank approved by the Capital Market Supervisory Agency and Financial Institution Supervisory Agency (Bapepam-LK).

Return On Investment Banking | Another difference, when you save in the bank, the fund will be managed by the bank for the bank to pay the promised interest rate. Management of the funds handed over to the policy of each bank.

Return On Investment Banking | When the bank suffered losses in the management of these funds, you will not come lose, and still earn interest as promised. Similarly, if banks get a big advantage, you will not earn any interest other than promised.

Return On Investment Banking | Conditions were different when you invest in mutual funds. You as the owner of the funds “can also determine” how your investment funds are managed. How, by making the choice of mutual funds in accordance with your wishes. Is it money market funds, fixed income, mix, share, or protected.

Return On Investment Banking | Each type has characteristics of mutual fund returns and risks vary. Furthermore, if investment managers are able to manage your funds properly in accordance with the investment policies contained in the prospectus and produce high yields, the overall results is yours.

However, if you find that mutual funds suffered losses, you also have to bear the risk of loss.