Although both operate in the capital market, there are differences between buying shares directly and investing through an Equity Fund. To understand these differences, please read the following explanation.

An Investment Manager manages your portfolio in detail

Every investment you make in shares or an Equity Fund is naturally managed by the party responsible for its management. The difference is that if you buy shares directly, you are responsible for managing your portfolio, from selecting shares, timing your purchases, and timing your sales. If you invest in an Equity Fund, your portfolio will be managed by an Investment Manager with the assistance of an experienced team of analysts.

Mutual Funds minimise investment risk

When investors decide to manage their portfolio themselves, they bear the risk from limitations in time, knowledge, and personal ability regarding the capital market.

More affordable investment

If you want to invest in shares, each share purchase requires you to buy a minimum of 1 lot (100 shares). With Mutual Funds, you can start investing with a minimum amount of Rp50,000 because the Investment Manager will pool money from various investors to purchase shares together.

Mutual Funds are not subject to tax

You only need to report the profits you earn from Mutual Funds in your annual tax return. Shares, meanwhile, are subject to a tax of approximately 0.1% of the share sale value. If you receive dividends, you will be subject to a final tax of 10%.

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What are the benefits of investing in Mutual Funds?

Why invest in Mutual Funds rather than buying directly in the capital market?