Conventional Mutual Funds (Based on Bapepam Regulation No. IV C.3)
Money Market Funds:
"This Mutual Fund only invests on debt securities, which maturity date is less than a year".
The investment is allocated mainly in money market instruments with short term investment period.
Fixed Income Funds:
"This Mutual Fund invests at least 80% of its assets in debt securities".
The investment is allocated to instruments that provide relatively stable income.
"This Mutual Fund invests at least 80% of its assets in equities".
The purpose is to have a long term capital gain.
"This Mutual Fund invests in both equities and debt securities with different proportion from what is stipulated on point b and c above."
The purpose is to diversify the investment with balanced instruments between equities and debt securities.
Structured Funds (Based on Bapepam Regulation No. IV C.4)
Capital Protected Funds:
Provides protection on the initial investment by managing the investment portfolios upon maturity date, investing in debt securities with good investment grade.
Provides a guarantee towards the initial investment upon maturity date.
Protection is provided by the Investment Manager through a third party assurance, such as banks, isurance, etc.
Investing on debt securities with good investment grade at least 80% of the NAV.
A Mutual Fund with a portfolio constructed to match or track the components of a market index as the benchmark, at least 80% of the NAV is invested on the instruments of a market index.
The proportion of each instruments starts between 80% up to 120%.