Gold Investment or Mutual Funds investment may be will answer what Is Investment, and why should people do It?
Spending time thinking about money to work for us can be far more profitable than spending weeks, months and even years working hard to get it.
For investors who think about how money works for us, they must understand how money works, what can affect your savings and how to invest it to maintain its value so as not to erode inflation, or even make its value grow. In short, we want to give you the knowledge you need to make smart investment decisions.
If you have a long-term investment plan, you can consider investing in mutual funds or gold. Mutual funds and gold have the potential to offer relatively better returns than other types of investment assets, if done for a long period. Both types of investment instruments are also suitable to fight the increasingly high cost of living so that your assets are not eroded by inflation.
Mutual funds and gold, suitable for those who have a low risk profile
Mutual funds represent the type of investment in the capital market, and gold represents the type of investment in valuable goods are two types of low risk investment instruments. Although the risk is low, it can provide returns on bank deposits for the long term. You can run both at once, or choose one of them, which one is more profitable for investment, mutual fund or gold?
Which is more profitable, gold or mutual funds?
This question is almost always asked for new investors. A classic question and to answer it needs to be explained in detail, plus minus the two types of investment.
Gold Investment, Consider Some of the Gold Characteristics Following
Gold, in less than 5 years, tends to fluctuate in price, but after that it tends to start to look stable price increases. This is what makes gold suitable for long-term investment objectives over five years. With that in mind, gold is suitable for the following investment purposes: • Retirement preparation • Preparation of children's education costs • Child marriage preparation There are two types of gold, gold jewelry and gold bars. For investment purposes, please take the gold bar.
Gold jewelry sold in jewelry stores has gone through the process of making it, the more complicated the form of jewelry, the more expensive the process costs. The impact of the price of gold is also more expensive, so if used for jewelry, the results will not be maximal because it has been exposed to the cost of the manufacturing process. In Indonesia we know Logam Mulia (LM) gold standard of 99.99% purity is officially sold at Antam boutiques.
PT Aneka Tambang (Antam) is the party that produces and sells the gold. Antam official gold can also be obtained at Pegadaian, or a gold shop that has an authentic certificate from Antam.
So before you make a gold investment, you need to consider the readiness of your funds for daily needs at least for financial plans above 5 years.
The purpose of preparing these funds is so that your gold investment can be used for long-term purposes and not be sold in the middle of the road because you need money for living expenses.
Mutual Funds, Types of Investment in the Capital Market for Various Risk Profiles
Mutual funds can be a learning medium for investors who are still lay to enter the capital market. Mutual funds are relatively risk-controlled, given that the funds we invest are managed by experienced investment managers and broken down into various investment platforms.
As an investor, you can buy mutual fund units where your funds will be managed by investment fund management companies under the responsibility of the Investment Manager. To meet the investor risk profile, mutual funds have four types that can be chosen according to the investor's risk profile, namely:
• Money Market Mutual Funds (RDPU), managed by Investment Managers (MI) on money market investment instruments, such as deposits and Bank Indonesia Certificates (SBI). Safest, minimal returns
• Fixed Income Mutual Funds (RDPT), managed by Investment Managers (MI) in bond investment instruments and the remainder in shares or money market investment instruments. Risks and returns above the RDPU.
• Mixed Mutual Funds (RDC), managed by Investment Managers (MI) on investment instruments balanced into stocks and bonds. Risks and returns above the RDPU.
• Equity fund (RDS), managed by Investment Managers (MI) on stock investment instruments. The biggest risks and returns compared to others.
Every investment, contains the principle of high risk, high return (the greater the risk, the higher the return). When is the right time to invest in Mutual Funds? In investing in mutual funds, consider the following: • The best time is when you are young, if it's too late to do it now • Choose the type of mutual fund in accordance with your risk profile (make sure you are a moderate type or type of investor who is willing to take risks. • Make an investment time horizon of at least five years • Choose good investment managers and mutual fund products that have performed well in the past 3-5 years
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Don't Be Confused, Why Should I Choose Gold or Mutual Funds?
Both types of investments are relatively safe to do. Most importantly you understand the characteristics of both (can be learned by trying both types of investment).
It's just a few It's just that the following things can be considered to adjust your investment plan with what investment instruments you need. The advantages of mutual funds are: • Return on investment results of mutual funds above the gold average. • Mutual fund investment only requires small capital, starting from Rp. 100,000 • Mutual fund investment does not risk losing such as gold, does not need storage fees and can be done online
While the advantages of gold is relatively more stable in terms of selling prices compared to mutual funds. In addition, for those who still lay with non-physical investment, the gold investment can be relatively "comfortable" to do.