Education

Investing in Mutual Funds is inseparable from investment risks, including but not limited to:

1. Risk of reduced Net Asset Value

Investments owned by investors in mutual funds may fluctuate due to an increase or decrease in the Net Asset Value of the Mutual Fund. Increase or decrease in Mutual Fund Net Asset Value may be caused by, among others, changes in the price of Securities and other risks attached to the Securities. There is no guarantee that the investor's investment value will not decrease or that the investment value will increase.

2. Risk of Default

Investment Managers will endeavor to manage investor’s investment portfolio in best effort basis. However, in exceptional circumstances, banks and / or securities issuers or other parties related to the Mutual Fund may default in fulfilling their obligations, which will affect the performance of the Mutual Fund.

3. Liquidity Risk

Liquidity risk relates to the ability of the Investment Manager to provide sufficient cash to pay for the redemption of Participation Units submitted by the Unit Holder. If within a short period of time or simultaneously, when most of the Participation Unit Holders submit the redemption application to the Investment Manager, there is a possibility that the redemption payment is delayed. This is because the Investment Manager's ability to provide cash is also affected by the liquidity level of the securities that will be sold in the respective Mutual Fund to fulfill the redemption payment.

In the event of circumstances beyond the control of the Investment Manager (force majeure) occurs, the redemption may be temporarily suspended in accordance with the provisions in the Collective Investment Contract and / or the Financial Services Authority (OJK) Regulation.

4. Risk of changes in political, economic and regulatory conditions

Changes in political, economic conditions as well as changes in applicable regulations or the existence of Government policies, especially in the field of economy and taxation, can affect the performance of the Mutual Fund as these changes also affect the performance of the issuer of  debt securities and / or equities where the Mutual Fund invests.

5. Risk of fluctuation in exchange rates and interest rates

Investments in Mutual Funds may experience an increase or decrease in value as a result of fluctuations in (i) the exchange rate between Indonesian Rupiah and foreign currencies; or (ii) interest rates between Rupiah and non-Rupiah investments; which in turn also affects the Net Asset Value of the Mutual Fund.

A more complete information of mutual fund risk can be seen in the Prospectus of each Mutual Fund.