• According to Indonesian Legislation Law about Capital Market No. 8 Year 1995 Verse (27): “Mutual Fund is a container that is used to collect funds from the investing society to be invested in Securities portfolio by an investment manager.”
• Mutual Fund is an investment vehicle that could be compared to a basket filled with a variety of stocks. You and other investors can collectively buy a portion of the assets in the basket, assorted in such a way to fulfill a particular investment aim.
• Every Mutual Fund product has a clear investment aim, along with a guide of how that aim could be accomplished.
• For further information regarding Mutual Fund products, please visit our website.

1. Professionally managed
   Mutual Fund is managed by professional and experienced staff who have access to information about securities trading, so as to enable searching for the best investment opportunities for customers
2. Investment value growth
   Mutual Fund is a fund pool from investors that is managed in a directed and accountable way. Therefore, with the accumulated fund, Mutual Fund can perform collective transactions with an efficient transaction fee, and can easily access a variety of investment instruments, which may be hard for individuals. Thus, participation unit holders have equal chance to get relatively better returns, in tune with the level of risk
3. Diversification
   Diversification is one of the main steps of Mutual Fund. This is done to reduce risk level to a minimum. Investment funds you place will be allocated to many different kinds of investment instruments in the capital market
4. Ease of redemption
   Mutual Fund investment is easy and efficient to redeem because it could be resold to investment managers
5. Ease of investment
   Investing in Mutual Funds is relatively easy as apart from the simple process, you are given investment choices, with approaches that are appropriate with the risk and returns expected
6. Freedom of investment
   With Mutual Funds, you are free to choose the type of investment and to also convert to another type that you may find more suitable for your needs
7. Smaller fees
   Investing in Mutual Funds carries relatively smaller fees compared to investing by yourself. This is because investment managers collect funds on a large scale in order to allocate it economically.
8. Smaller taxes
   Investment returns and redemption gains is tax exempt, thereby making your profits net.
9. Information transparency
   Mutual Fund participation unit holders will acquire information transparently regarding Net Value Asset (NAV) growth of the Mutual Fund that will be released monthly.

Net Asset Value (NAV)

NAV is a value that describes the daily total net worth of the Mutual Fund. Mutual Fund products are sold in units, and allows investors to buy in units or in Rupiah which is then converted into units. NAV/unit is the fair market value of Mutual Fund portfolio after operational fee deduction, divided by the amount of participation units in circulation (investor-owned) at a given time. This value changes every day and is affected by transactions of buying and selling by investors, the fair market value of the Mutual Fund assets, and changes in amount of asset under management.

Custodian Bank

Custodian Bank is a commercial bank that has received authorization from the Capital Market Supervisory Body and Financial Institution (BAPEPAM & LK) to conduct business activities as a Custodian, which is to provide services of safekeeping of securities (including safekeeping of collective securities owned by more than one party, whose goals are represented by the Custodian) and other assets relevant with securities transactions, and represents the account holders who are its customers.

Selling agents

For definition, refer to Indonesian Financial Services Authority (OJK) Regulation No. 39/POJK.04/2014 date 30 December 2014.

Prospectus

Prospectus is any printed statement or written information which are used for public offerings of Mutual Fund, with the aim of attracting potential participation unit holder to purchase the Mutual Fund participation unit, with the exception of statements or information decreed by OJK to not be a Prospectus.

Decrease in NAV

This risk may occur due to the decrease of asset prices in a Mutual Fund portfolio. The following are factors that may lead to the decrease of price assets in a Mutual Fund portfolio:

• Decline in company/issuer performance
• Economic conditions, whether national or global such as inflation rates, BI rate, and current account deficit
• Unstable political conditions
• Social conditions such as natural disasters and security

Default

Default is a risk that is a result of a party’s/parties’ failure to deliver an obligation stipulated in the contract, to another party involved. To overcome this, get to know your investment manager and the Custodian Bank that manage your Mutual Fund product first.

Liquidation

This risk arises due to the investment manager’s inability to pay redemption proceeds to investors. If assets or securities in a portfolio are not liquid (hard to liquidize), then it is difficult for investment managers to perform the redemption promptly, which will delay the payout to investors. Also, in a case of force majeure, redemption of Mutual Fund participation units may be halted.Risks of Mutual Fund also vary with the Mutual Fund product you invest in.

1. Money market Mutual Fund
   A type of Mutual Fund that invests in securities of the money market, which are bonds with a due date not more than one year, such as Bank Indonesia Certificates (SBI) and deposit
2. Fixed income Mutual Fund
   A type of Mutual Fund that invests at least 80% of the assets managed in bonds
3. Equity Mutual Fund
   A type of Mutual Fund that invests at least 80% of the assets managed in equity. Stocks generally yield higher returns in the form of capital gain, which is a result of rising stock prices, and dividends
4. Balanced Mutual Fund
   A type of Mutual Fund that invests in equity and bonds, which proportions that do not belong in the fixed income nor in the equity category
5. Sharia (syariah) Mutual Fund
   Islamic Mutual Funds according to POJK. No. 19/POJK.04/2015 is a Mutual Fund as defined in the Capital Market Act and its implementing regulations whose management does not contradict with Islamic Principles in the Capital Market. Based on that definition, each type of the Mutual Funds can be issued as Islamic Mutual Funds as long as it meets the Islamic principles, including the assets that underlie its issuance.Islamic Mutual Funds are considered fulfilling the Islamic principles in the capital market if the akad, arrangements and portfolios are not contradictory with Islamic principles in Islamic Principles in the Capital Market.

Fees in Mutual Fund, whether imposed on the participation unit holder, investment manager, or the Mutual Fund itself, are listed below, but not limited to:

1. Fees imposed on investors, such as subscription, redemption, switching fee, transfer fee, and taxes regarding the participation unit holder (if exists)
2. Fees imposed on the Mutual Fund, such as investment manager fee, Custodian Bank fee, transaction and registration fee, auditor fee, etc.
3. Fees imposed on the investment manager, such as formation of the Mutual Fund fee, law consultant fee, accountant, marketing, etc.

Further information regarding Mutual Fund can be found in Mutual Fund Prospectus