As we already know, a mutual fund is one of the alternative investments suitable for investors who do not have much time and expertise to calculate investment risk. In general, there are 7 advantages of investing in Mutual Funds compared to other instruments.

 

Diversification

The main advantage of investing in mutual funds is asset diversification. For example, an investor can buy stocks in the Financial sector and then buy several other stocks in the Agriculture sector at the same time. This will help investors reduce the impact of market fluctuations and minimise losses in their investment portfolio. Another advantage of mutual funds is diversification and asset allocation instantly without incurring significant costs. Fixed income funds allow you to invest in debt instruments such as money market instruments and government or corporate bonds. There are also balanced funds that offer exposure to both equities and debt instruments.

 

Ease of buying shares

Many investors are unable to buy shares with the money they have, especially after deducting commissions. However, with mutual funds, investors can buy shares in smaller denominations. This will help investors make regular investments through a monthly systematic investment plan while taking advantage of Rupiah Cost Averaging (RCA) activities. As a result, investors no longer need to wait until they have a large amount of money to own shares in a company.

 

Liquidity

Another advantage of mutual funds is the ability to enter and exit without difficulty. Investors can sell their mutual funds in a short period of time without having to worry about the difference between the selling price and the market value at the time of transaction.

 

Affordable costs

Mutual funds leverage collective power to reduce costs and maximise profits. For example, when you buy one apple, the cost is lower when a dozen apples are bought together. The same applies to the purchase and sale of securities. In securities transactions, the large volume of transactions will help reduce transaction costs.

 

Professional Expertise

Investment activities require financial skills. Consistency in conducting market research across various industries and companies is integral to investing. To succeed in investing, you need a professional to manage your portfolio funds. In Indonesia, investment managers have obtained the Deputy Investment Manager certificate and/or the global certificate, Certified Financial Analyst (CFA), which gives them knowledge about the investment world.

 

Process Simplicity

If you already have a bank account and a Tax Identification Number (NPWP), you can start investing immediately. Since all funds are well integrated with the system, money will arrive in your bank account. This is a major advantage of investing in mutual funds.

You need to fill out a form, attach a copy of your NPWP and sign a cheque to start investing. You can also invest through online platforms provided by our investment partners.

 

Regulated and supervised by the Indonesia Financial Services Authority

Mutual fund investment activities in Indonesia are well regulated by the Indonesia Financial Services Authority (OJK). This provides comfort for investors to invest. The high level of transparency in mutual fund activities is aimed at helping investors make decisions based on accurate and current information.

 

See also:

Why invest in mutual funds rather than buying directly in the capital market?

Why invest in mutual funds?