Smart Tips for Investing
July 22nd, 2010 | 
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Before you decide to buy an investment product (such as mutual funds), there are some things that must be considered in order not to regret in the future. Below, a few tips so you do not be fooled investment products.
First, look at who’s making the investment product. If the product is a mutual fund, then find out about who the Investment Manager (MI), see how his reputation, and who the seller agent.
Second, investors should carefully read the prospectus. This is usually done lazy investor, when reading the prospectus is a mandatory step. Because, in whom the MI contained in the prospectus, the people who manage investments, track record, and who the custodian bank. The most important of the Prospectus at the time he got customers to buy mutual funds. Important steps that must be realized to avoid you regret later on is to consider the risk that you’ll get. People are more likely concerned with profits (return) that can be obtained, and the exclusion of risks that may arise in the future. Risks related to the return. If the return is high, the risk is too high. For selecting the MI, you should really check to see if the MI is listed on the Capital Market Supervisory Agency and Financial Institution or not. You also need to probe the extent to which MI honest in providing information.
Here to note is anyone involved management, the Investment Committee who, how investment management over the years, how much it cost (fee) is charged, also whether the existing team in managing investments with consistent MI or not. It is suggested that investors look at how long the MI is active in managing the product. Because, the longer the MI stands, then that MI has been through the economic cycle stages in a country.
Third, is how the performance of the MI. You can measure whether the achievement of your mutual fund products is above the stock price index (CSPI) or equal to, or below the CSPI. What about the consistency of performance when compared to CSPI. “If CSPI bulish, a mutual fund you actually drop, it must be questioned,” he said.
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