Insurance Mutual By Raymon Ricky
Insurance Mutual is one of insurance product that give life protection with the better yield on a long term. So premium which you pay to insurance company, will be invested by investment manager that pointed by insurance company. Usually there are investment portfolio optional which you can choose by yourself, start from low risk-low return until high risk- high return investment.
Major Risks Investment on Insurance Mutual
Before you decide what investment portfolio on Insurance Mutual that would be convenient for you, there are several factors that you must to know
- Unit Value Reduction Risk. Unit value reduction caused by macro economic and security, from another party in Insurance Mutual management like Bank, another party that publish money market instrument an or obligation and changes in money market instrument as the result of interest rate and Foreign currency movement significantly.
- Credit Risk. Credit Risk can occur if the company that publish Obligation and Money market Instrument cannot afford to paid delinquent of amount and delinquent interest. This will impact on Insurance Mutual return value.
- Liquidity Risk. This risk occurs when Investment Manager didn't have fund or didn't have available cash to bought back Unit/Shares of Insurance Mutual that has been sold
- Politic and Economic Risk. Economic changes in local or International, political issue, laws like changes in Constitution, Government rules that had impact on business to change stock value.
Financial Benefit of Mutual Fund
Executive Summary by Eric Kramer
A mutual fund is a financial intermediary which pools that money of a large number of investors together and invests them in different securities. You buy shares of the mutual fund and immediately become one of its owners. The investors that participate in a particular mutual fund tend to share a common investment objective.
Investing in a mutual fund will significantly reduce your costs. One of the biggest advantages that mutual funds offer is diversification. Additionally, if you lack the knowledge to invest the team of expert mutual fund managers will do the job for you.
Another advantage of mutual funds is their high liquidity. This means that if you need money in a short time frame, you can easily sell shares of you mutual fund and get the money. You write a check and the money for its coverage come directly from your mutual fund account.
If you are averse to risk, this is another reason to consider mutual funds as a candidate for investment.
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