Protecting and maximizing assets can be obtained from investing in mutual funds and stocks. Jagoans who have invested in both would certainly want to boost investment returns, right? But how to do it, what should be done? Head of Investment Research at Bibit, Vivi Lie shared a number of tips.
Tips for Boosting Investment Returns
"If you already have an investment portfolio, to get more returns, you can consider diversifying. For example, if you only have investments in mutual funds and bonds, you can add stocks if they are still within the tolerance of the risk profile. With diversification, returns can be optimized. Stocks may be up and down by 10%, for bonds it may be less than 10%. So diversification really helps the portfolio returns," Vivi said to Bank Jago.
Furthermore, Vivi explained that to be able to earn more profit, investors must be aware of additional volatility or risk. Another consideration is if you want to increase your income while maintaining risk when trading stocks, then you have to look at the shares you are buying. Investors must be willing to spend time and give more effort to do an analysis of the shares to be bought or sold because wanting extra returns while maintaining risk is only possible if we buy a good company at a low price.
“Usually the higher the risk, the higher the returns. If you want to boost investment returns, you can try to invest in bond mutual funds or stock mutual funds. Bibit now also has state bonds with returns above 6%. For individual shares, if you choose the right one, the profits can be much bigger than the ICI."
No less important is to review investment performance. The question is, how often should this be done?
“At least once a year. It's not just investment performance that needs to be reviewed. We also have to review the allocation, how much have you saved in the form of deposits, how much in stocks, as well as in other forms of investment."
“And, is this investment right for your respective financial goals? There may also be circumstances that need to be considered where the investment needs to be adjusted. If you get a raise, for example, you can increase your investment," Vivi explained.
When to Sell Your Mutual Funds or Shares?
Some investors may think of selling their mutual funds or shares as soon as they make a profit, even if they only make a small profit. But, if you want maximum returns, this is Vivi's advice.
“Money market, stock and bond mutual funds are different from individual stocks. When your mutual funds are already profitable, there is a portfolio manager who takes care, in the sense of deciding to buy or sell. The good thing about investing in mutual funds is that you don't need to time the market. Historical data shows that usually time in the market is more important than timing the market for diversified products such as mutual funds.”
"As individuals, it's hard for us to know whether this is the right time to buy or sell or even the profit can be added in the future. Unless you can predict accurately, it's okay to sell your mutual funds if they already give you profits. But, because mutual fund investment is long-term, it's better to leave it alone until it's time to sell it to meet your financial goals.”
For individual stocks, the treatment is somewhat different. “This is because there is no manager in trading stocks. Shares must be self-managed. We have to find out and analyze it ourselves, whether the shares we own have prospects or not," Vivi said.
The Power of the Digital Ecosystem Through Jago's Collaboration with Bibit and Stockbit
The last tip that investors can use is to find ways to invest comfortably and without the hassle. You can get this by taking advantage of the power of the digital ecosystem from Jago's collaboration with the mutual fund investment application Bibit and the stock application Stockbit.
Just 1 digital ecosystem to complete your financial planning journey. With Jago, you can allocate funds for daily needs, various expenses, savings and mutual fund investments in Bibit and stock investments in Stockbit in just 1 application. So it's easier to see the investment portion, what percentage of funds have been invested in mutual funds and what percentage in stocks.
Apart from that, a review of investment performance along with the profit can also be done directly through Jago. You don't need to switch applications. The same goes for when you want to top up for your next investment.
Ready to maximize your investment in mutual funds and stocks? You can follow a number of tips from Vivi above. And, don't forget to use Jago to manage your finances and take advantage of the digital ecosystem.
