What is the difference between equity, fixed income, and money market funds?

Types of Mutual Funds

Equity Fund (Reksa Dana Saham)

• Invests primarily in stocks (≥80% in equities)
• Higher potential returns, higher risk
• Suitable for long-term investment (5+ years)

Fixed Income Fund (Reksa Dana Pendapatan Tetap)

• Invests mainly in bonds (≥80% in bonds)
• Medium risk, medium return
• Suitable for medium-term (1–3 years)

Money Market Fund (Reksa Dana Pasar Uang)

• Invests in short-term instruments (deposits, T-bills)
• Lowest risk, stable return
• Suitable for short-term or emergency funds