Money Market Funds (RDPU): The Most Stable Mutual Fund—Here’s Why

Various types of mutual funds offer different characteristics and objectives, depending on investors’ needs. One of the most popular options for short-term goals is RDPU, a product known for its stability, low risk, and suitability for temporarily parking funds.

Curious about what RDPU is and why many investors choose it? Read the full explanation below.

What Is RDPU?

RDPU stands for Reksa Dana Pasar Uang, or Money Market Mutual Funds. These funds invest in deposits, short-term bonds, and money market instruments with maturities of less than one year. RDPU is suitable for waiting for other investment opportunities, preparing emergency funds, or storing cash with minimal price fluctuations.

Objectives and Characteristics of RDPU

Below are the objectives and characteristics that distinguish RDPU from other types of mutual funds:

1. Stable Value and High Liquidity

Money Market Funds are designed to maintain stable value and offer high liquidity. Due to their low risk profile, they are suitable for short-term needs and  financial expenses.

2. Lower Risk Compared to Other Mutual Funds

Compared to equity or fixed-income mutual funds, RDPU carries significantly lower risk. This is because its investments are allocated to high-quality instruments with short maturities. 

3. Ideal for Short-Term Goals

This investment is often chosen as a place to “park funds” while waiting for other investment opportunities. It is ideal for managing short-term funds, such as holiday planning or emergency reserves.

 

Benefits of RDPU for Investors

Here are the main benefits investors can obtain from this type of investment:

1. Very Low Price Fluctuation Risk

Money Market Funds invest in low-risk money market instruments, resulting in relatively stable price movements. Investors therefore do not need to worry about sharp volatility.

2. Easy and Quick Redemption

One of RDPU’s key attractions is its high liquidity. Funds can be redeemed quickly, making it suitable for urgent needs or short-term goals without long waiting periods.

3. Potentially Higher Returns 

Money Market Funds may offer returns that are sometimes higher than bank deposits, depending on the product. This makes RDPU suitable for investors seeking stable yet attractive returns.

 

Risks of RDPU to Consider

Despite its stability, investors should be aware of the following risks before choosing Money Market Funds:

1. Relatively Lower Returns

RDPU returns are relatively lower compared to higher-risk instruments such as equity mutual funds or long-term bonds. It is suitable for capital preservation, but not for aggressive growth.

2. Credit or Default Risk

Although minimal, there is a possibility that issuers of money market instruments may fail to meet their obligations. If this occurs, portfolio value may be affected, even though investment managers typically select high-quality instruments.

3. Liquidity Risk

Some money market instruments may not always be redeemed as quickly as expected. As a result, investment managers may experience delays when many investors request redemptions simultaneously.

4. Interest Rate Risk

Significant changes in interest rates can affect RDPU returns. For example, when interest rates rise sharply, the value of existing money market instruments may decline, causing returns to adjust accordingly.

Who Is RDPU Suitable For?

So, which investors are best suited for RDPU as an investment product? RDPU is ideal for:

• Beginner investors who want to start investing,
• Investors who prioritize stability and easy liquidity,
• Individuals managing emergency funds or short-term financial goals.

Start Stable Investing with Money Market Funds

RDPU is a safe, liquid, and low-volatility mutual fund option, making it ideal for short-term goals or as a temporary parking place for funds. With its stable characteristics, RDPU helps investors preserve capital value without dramatic price fluctuations.

Looking to start investing in a more calm and measured way? Explore RDPU through Growin' by Mandiri Sekuritas and find products that best suit your financial needs. It’s time to build investment stability from today.