We have discussed various types of mutual funds, ranging from fixed-income mutual funds to exchange-trade fund (ETF). But, only knew about the types of products it is not enough. Before investing in mutual funds, you also have to be smart to choose an investment management firm (MI), which manages mutual funds-mutual funds.

There are many factors to be considered when an investor would like to select investment managers (MI) mutual funds. For example, investors should study the integrity and track record of MI. Investors also have to know the investment style, number of customers, and the number of funds managed by investment managers. Finally, investors also should study the quality of service and tariff costs are MI.

Just a reminder, mutual funds are investment products characterized by three well: well managed, well diversified, and well-regulated. Well, of the three well managed and well diversified is the responsibility of investment managers. From the ability to manage and invest in the types of investment instruments that precisely why we can measure the quality of investment managers. In addition, we also have to measure the integrity of the investment manager.

Therefore, no matter how small the money you invested in mutual fund investing, do not be shy to ask about the credibility of the investment managers who would you trust to manage your money.

In addition to asking friends and colleagues who understand the world of mutual funds, you also can search the site to ensure that MI www.bapepamlk.depkeu.go.id that you believe has been pocketing the permission of the Capital Market Supervisory Agency (Bapepam-LK).

In addition, there are several factors that you should look at when choosing an investment manager.
First is his experience. This is related to the duration of MI was standing firm. Just so you know, some investment managers operating in Indonesia is an affiliate of the international financial group operating in various countries and has been operating for decades.
Just a rule of thumb, if MI was already seven years of existence and its products benefit (return) is good it can be said that his track record well. This information is typically provided in the product prospectus mutual funds they manage.

Second is the historical performance of investment managers. Although not a guarantee, but the reliability of investment managers managing the funds will be apparent from the performance of mutual funds that once they manage in the past. A good investment manager will maintain consistency in performance, so it can be a guide for investors about the potential benefits to be gained.

In looking at historical performance, which deserves attention not only return generated, but also the risks. To measure this risk we can notice the advantages of mutual funds managed by fluctuations of the MI. If the fluctuation is high, meaning the risk is too high. Conversely, if a small fluctuation, or its performance tends to calm, which means low risk.

That is, investors should also study the investment style of each MI. Furthermore, investors should consider whether the investment style in accordance with their risk profile and target respectively.
When choosing an investment manager (MI), mutual funds, investors often tend to look for MI who can provide the highest profits. In fact, investors also have to know the investment style of MI. Who knows, the profit was obtained with an investment style that is too bold. That is, risk is high.

Investment style or investment manager investment style can be learned from the contents of the portfolio reported in its financial statements. What is noteworthy is the type of bonds or stocks in its portfolio. What is more bonds or stocks of small companies but its growth rate is big enough, or more shares or corporate bonds established with slower growth. We can also see, if the portfolio consists of stocks or corporate bonds in a particular sector or evenly across all sectors.

Fourth, we must also examine the existence of support group of companies. Generally, the people very concerned about the support group of companies to convince myself that the MI will chose to live long. That is, the larger the group the better.

The fifth, also look great assets under management of MI. Like a production machine that can produce goods cheaper when made in large quantities, the greater the assets managed by investment managers are also many advantages. The investment cost can be more efficient. They also have better bargaining power for managing large amounts of money. That is, they can get better prices when trading, particularly for money market instruments and fixed income.

Sixth, investors also have to learn the number of customers who have invested in an investment manager tersebut.Banyaknya customers showed great confidence in investors. In addition to managing mutual funds, many fund managers also manage the customer portfolio separately (discretionary funds). Customer discretionary general fund large customers such as pension funds or insurance. Now, more and more investors who entrust their funds to an investment manager, mean MI is believed by many people.

Finally, investors should also study the cost structure are imposed by MI. These costs include the cost of purchasing mutual funds, management, and withdrawal of funds. The cheaper the cost of the more frugal.
One more, investors also should look at the quality of MI services.