Gold is a very familiar investment alternative for novice investors. Gold investment takes the form of a commodity, where investors can buy physical items. Many choose gold because it is tangible, making it feel safer. What are the pros and cons?

Mutual fund investment is more liquid than gold

Liquidating gold investment returns requires extra effort. Transactions are generally conducted offline, unlike mutual funds which can be redeemed online.

Mutual fund investment requires only small capital

Mutual fund investment can be started with just Rp100,000 online. Meanwhile, for gold investment, according to data from PT Aneka Tambang (Antam) website, the lowest price for Precious Metal (LM) is Rp553,000 per gram. So you would need around Rp500,000 to start investing in gold.

Mutual funds do not carry the risk of loss like gold

Because it is not in physical form, mutual funds do not carry the risk of loss like gold, making it safer from natural disasters, fire and theft. The function of storing mutual fund assets, such as interest or dividends, is entrusted to a Custodian Bank which is responsible for managing and safeguarding mutual fund assets.

Mutual funds do not require storage fees

Mutual funds do not require storage fees like gold, which needs a special location, such as a Safe Deposit Box (SDB) located at a bank. SDB itself requires fairly high annual fees, whereas mutual funds only need to be kept with a Custodian Bank at relatively small costs.

Mutual funds can be diversified to protect investment value

Diversification is a way to combine several types of investments simultaneously to protect investment value.

Mutual funds are managed by Investment Managers with expert research teams

Investment Managers have expert research teams in formulating investment strategies with projected returns based on historical value, whilst gold prices are not controlled by the institution that issues the gold product itself.

Mutual funds are safer from counterfeiting risks

Unlike gold which is prone to fraud, mutual funds tend to be safe from counterfeiting because there is no physical item that changes hands. The buying and selling process is conducted without the need for certificates (scriptless).

Broadly speaking, mutual funds are suitable for you if you want to invest with various targets and investment goals, whilst gold can be an alternative for storing money. Which is your choice? Please decide according to your needs!

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