1. What is Reksa Dana?

Reksa dana is a pool of money, managed and invested by investment managers. There are varieties of Reksa dana ranging from money market, bonds, equity and balance mutual funds and other innovative mix of capital market instruments to meet the investors' investment objective.

The concept is straightforward. Fund from investors with the same investment objective is pooled collectively. Investment manager, a qualified licensed individual, manages the pooled funds by allocating funds to the range of products in capital market, for instance money market, stocks (equity), bonds, and so on.

2. Who is Investment Manager?

The responsible entity must be licensed under BAPEPAM (Badan Pengawasan Pasar Modal – Capital Market Supervisory Agency) to carry on a financial services business, such as managing investment portfolio for investors or managing a collective investment for a certain number of individuals.

3. How to choose Investment Manager?

Assessment is based on following:

1. Trust/ Reputation : Company's reputation and supports from its group of companies and/or shareholders.
2. Experience : The time span of existence in the financial markets as a portfolio manager reflects its ability to withstand shocks in the volatile capital market industry and continues to operate as a business entity. Short-term performance is not a basis for future achievement.
3. Stability and Past performance : Track records its past performance and observes how it has performe

4. What are the risks and benefit of Reksadana?

The main advantages of Reksadana can be received in two ways :

1. Gain received from distribution of profit : interest or dividend in the form of cash or reinvestment,
2. Gain received from the price appreciation of the mutual funds.
3. Other Advantages of Reksadana :
   
   
   • Investment Diversification
         As an old saying "Do not put all the eggs in one basket". This in turn will minimize risk with a relatively small investment.
   • Transparent
         Investor can monitor the NAV (Net Asset Value) transparently thru mass media every day.
   • Professionally organized
         All parties involved has years of experience and proven track records in Indonesian Stock Exchange.
   • Tax-free
         Based on Reksadana Collective Investment Contract article Number SE-18/PJ.42/1996 dated April 30th 1996, from Directorate General of Taxation that all the gain including gain from reselling of the Mutual Funds unit received by the investor will be tax-free.

5. Rekasadana's Main Risk

Aside from all gains and advantages of Reksadana all the investment activities of Reksadana has also risk. Factors that are affecting the performance of the investment are as followings :

• Decreasing Unit Value
      Fluctuation of the equity's price as well as debt instrument in a portfolio can decrease the Net Asset Value.
• Liquidity Risk
      Liquidity risk exist when there is a huge selling of the Mutual fund at the same time hence the Investment Manager is unable to generate cash to pay all the Mutual fund sold.
• Asset-loss risk
     Occur if an insurance company is unable to pay the loss of the Rekasadana's asset or the paid is less than the coverage.
• Political and Economical Risk
     Changes in the Political and Economical outlook affect the performance of company/companies including those companies who is publicly listed and will in turns affecting the Reksadana's portfolio

6. What are the factors affecting the performance of Reksadana?

7. What is all of Reksadana in Indonesia have same risks?

Different base on kind of reksadana. There are 4 kinds of reksadana:

• Money Market Reksadana
      Money market reksadana is reksadana where all of funds that have collected will be invested into money market: SBI, Deposit, Government Bond with term less than 1 year.
• Fixed Income Reksadana
   Fixed income reksadana is reksadana where most of its funds will be invested into form securities that have debt characteristic: SBI, Deposit, Government Bond, and Private Bond.
• Mix Reksadana
  Mix reksadana is reksadana where part of its investment are form SBI, Deposit, Government Bond, and Private Bond.
• Stock Reksadana
  Stock reksadana is reksadana where all of its funds will be invested into stocks.

8. NAV is the indicator value of your Reksadana's performance. What is NAV?

NAV is the indicator for the performance of Reksadana. For Collective Insvestment Contract, the investor can resell the Unit to the Investment Manager or Custodian Bank anytime with the value according to the NAV on the transaction date. The custodian bank will calculate and publish a daily NAV statement, financial statement each semester and balance statement of the investor each month if there is a mutation.

9. What is the high return reflecting good reksadana?

Yes, if consistent. Despite its return is high but delta is increase and large down also more fluctuation, are not good because usually that most guarantee loss is small customer. But, if these return increase consistent despite its graph is flat, surely preference by customer.

10. When to see the results of your Reksadana's investment?

Advantages and gains from Reksadana can be evaluated after at least 1 (one) month from the purchased date.