Choosing Mutual Funds pt. 3
Which mutual funds will survive till the endÃƒÆ’Ã†â€™¢ÃƒÆ’¢Ã…Â¡¬¦?
One more step. Let use learn the comparison points in chapter 3 about Transition and Amount of Investment Capital.
If we take a look at Net Assets column in comparison table in precious page, there is B Fund with 150 million yen (around 16 billion rupiah) assets, C Fund with scale of 800 million yen (around 88 billion rupiah). The lower the amount of assets, the more limited the amount of stocks that can be invested. Along that, the stability also decreased. Due to that, in that case it is better to invest on mutual funds with larger assets which is C Fund.
Next is how about the transition of the assets? If we take a look at the transition of capital outflow, it will look like graph bellow.
Check 3. Transition and Amount of Capital, if like this, we can clearly see which one is better.
In order to understand from a glance, B Fund is signified by lowering graph which show capital outflow. In the other hand, C Fund show good capital inflow which is shown by increasing graph. So from the Transition and Amount of Capital, we can determine that C Fund is better.
So, from 3 general points if view that we studied above we can conclude as:
1. Cost:<B Fund>
2. Risk dan Return:<C Fund>
3. Transition and Amount of Capital:<C Fund>
As the final assessment, we can conclude that C Fund wins twice.
In selecting mutual fund, if we do not know the key then our step will be stopped on ÃƒÆ’Ã†â€™¢ÃƒÆ’¢Ã…Â¡¬ÃƒÆ’Ã¢â‚¬Â¦how to find the righ oneÃƒÆ’Ã†â€™¢ÃƒÆ’¢Ã…Â¡¬. But if we assess according to what we just learned before, then it is not too difficult to find what suitable. By using this method, in the next opportunity we will try to choose domestic stocks mutual funds. How about it?