The exchange rate of the rupiah against the US dollar is currently drastically weakening. Unmitigated, the weakness reached a record low in two years. How is it that it does not affect our finances? Investment is one of the answers!
The rupiah has weakened to 1.6% throughout February, and is now down to the level of Rp13,763 per dollar.
However, not only the Rupiah is in a worrisome condition, other Asian currencies also weakened.
Last month, the Philippine peso currency declined to its weakest point since July 2006. The South Korean currency of the Won and Indian currency, the Rupee also slid to a low position.
This weakening of the Rupiah can have a negative impact to your daily finances, because it can boost prices in the market. However, on the other hand, this could be your chance to start investing.
One of them is mutual fund investment, which has a lot of variety, and now more easily accessible. If the weakening of the rupiah is also followed by a decline in the capital market, then in fact it is the momentum to invest because the value of portfilo is also down.
However, you should first consult with the financial planner or asset management to get an explanation of the right momentum according to investment needs.
A mutual fund is a pool of funds managed by an investment manager to buy stocks, bonds or other financial instruments. Later the instrument is collected into one mutual fund product, which can be purchased by the community more affordable.
You should start to decide the risk profile that is usually the investment period until the withdrawal of funds later. There are conservatives that are suitable for short term (1-2 years), then moderate medium term (2-3 years), and aggressive tend to long term (3-5 years and above).
Conservative profile
For those of you who still lay, should choose a mutual fund based on conservative risk profile. Just then switch to moderate, and aggressive. For people who are still conservative, can choose money market funds. The reason is that the risk profile of the mutual fund is small, because it comes from a minimal risk instrument.
Money market funds invest their investors' funds into money market instruments. Included in money market instruments deposits, commercial paper and bonds The maturity period is less than 1 year.
However, you need to remember too, a low risk profile is proportional to the yield offered. The average return on money market funds in the year is still below 10%.
In terms of investment needs, money market mutual funds are suitable for people who want to provide emergency or short-term funds.