Is it safe to invest in online mutual funds?

JAKARTA, KOMPAS.com – The proliferation of online mutual fund sales agents is increasing people's interest in investing.

However, the public's enthusiasm for investments also accompanies doubts about the level of security of online mutual fund sales agents.

Tanamduit Muhammad Hanif, Director of Business Development, explained, as one of the online fund sales agents explained, that they are only intermediaries between investors and investment managers who issue bonds. mutual fund products and custodian banks in which these products will be stored.

Thus, the security of the funds held by the investors is guaranteed by the custodian bank.

"When people buy mutual funds without us, they connect directly to mutual fund account numbers, and the mutual funds are managed by the custodian bank," Hanif told Kompas.com. Thursday (29.11.2018).

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In addition, explained Hanif, the transaction process via online sales agents was also overseen by the Financial Services Authority (OJK). According to Hanif, the doubts that arise are due more to the fact that people do not really understand the procedure to follow to invest via online investment portals and in some online markets.

"Maybe the customers do not really understand a little complicated the problem is, "he said.

Halim Haryono, deputy director of OJK Investment Management, said the public should first do research to ensure security before embarking on online investments in mutual funds. However, until now, Halim explained, the OJK has not received any public complaints regarding fintech, which provide investment services in mutual funds.

"In fact, we can see the route if there is interference and until now, there has been no interference, God willing, c & # 39; is safe, "he said.