In 2020, I dove headfirst into mutual funds with a rookie mistake many beginners make – chasing high returns. Offered a job at a Reksa Dana distribution platform, I eagerly downloaded several apps, exploring stock-based mutual funds with astronomical YTD returns. "Wow," I thought, "if I invest Rp 1,000,000, I could get Rp 1,100,000 in just a year!" Little did I know, this focus on short-term gains would lead to some sleepless nights.

Let me share three things to expect from your first investment in Reksa Dana:

A) It can be overwhelming at first, especially if you're not a numbers person. The ups and downs can be confusing, but don't lose sight of your long-term goals. Do some research to understand what's happening in your portfolio.

B) Don't expect overnight success. Like gardening, it takes time to see results. Past performance doesn't guarantee future returns, so focus on a long-term investment horizon.

C) Life throws curveballs. Car troubles, job loss, unexpected expenses – these things happen. Consider building an emergency fund of 3-6 months' living expenses alongside your mutual fund investment so you're prepared for anything. If you need to withdraw funds, that's okay. You can start again when you're ready.

Now, to avoid my rookie mistakes:

A) Understand Portfolio Needs. Different goals require different portfolios. My mistake was using a stock-based Reksa Dana for an emergency fund. These funds are volatile and ideal for long-term goals. Emergency funds need readily available cash with low risk, like a money market fund.

B) Know Your Risk Tolerance. This combines your risk appetite (how much loss you can handle) and risk capacity (how much risk you're willing to take). In 2020, I was very conservative. Now, I'm comfortable with a bit more risk.

C) Choose a Transparent Investment Manager. Pick a company that keeps you informed about your portfolio. Research their company goals and client interactions online to find a good fit.

Ready to start planting your seed and grow your wealth? Great! With these tips and a long-term perspective, you're well on your way.

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