Rumor has it that investing in mutual fund instruments is more profitable. Isn't it true? Come on, let's analyze.
Investment Instruments VS Inflation
Mutual Funds
Historically, mutual funds have been able to beat inflation. Even for equity mutual funds, the average is 10-15 percent per year, it could even be higher. However, it also depends on what mutual fund we place it in and with what MI.
Property/Real Estate
On the one hand, real estate is often not able to beat inflation significantly because it depends on the location of the property.
The rate of real estate profits that can beat inflation usually only occurs in certain places, such as urban areas or other strategic areas and most of the rest fail.
Gold
Although the return on gold investment generally beats inflation, it's actually not that significant. In fact, based on historical data in 2018, if we buy gold at the end of August 2017 and then sell it at the end of August 2018, it is likely that the profit we will get is only 2 percent.
While inflation alone is around 3 percent in that year. That means, there are places where gold is not able to beat inflation.
Even though in 2019 there was a fairly rapid increase, which was caused by many investors choosing save haven assets to protect their assets from the trade war between the USA & China.
Portfolio Diversification
Mutual Funds
Of course, mutual funds are one of the assets that can be diversified, such as into deposits/money markets, bonds/sukuk and stocks.
Property/Real Estate
This portfolio diversification is almost impossible. Even if it's possible, it takes a lot of capital to buy a property in a certain strategic area.
Gold
Portfolio diversification is not possible when investing in gold.
Profit Tax
Mutual Funds
Mutual funds are not tax objects. Thus, the results obtained can be maximized.
Property/Real Estate
On the one hand property can be taxed after indexation.
Gold
Investments in gold bars and jewelry must be taxed starting from 0.45% if you have an NPWP and 0.90 percent if you don't have an NPWP
Liquidity
Mutual Funds
Mutual funds are very liquid. That means, when you want to sell it, then the H + 1 or a maximum of H + 7 working days your sales transaction will have been completed.
Property/Real Estate
If the property is in a strategic area, maybe a matter of weeks you can sell it. But if it's in a remote area, it might take years.
Gold
Gold investment is very liquid (easy and fast to liquidate).
Hidden Costs
Mutual Funds
Mutual funds have no hidden fees other than the annual fee .
Property/Real Estate
The property has some hidden costs like maintenance etc.
Gold
Gold also has deep hidden costs such as the spread of buy and sell prices and locker fees and security.
Minimum Investment
Mutual Funds
The initial funds to start this investment are very affordable. Enough with Rp. 10,000, you can start.
Mutual funds are also very suitable for students to those who are married.
Property/Real Estate
You need at least a DP of 10-50 percent of the property price you want.
Gold
In this digital era, you can buy gold with a capital of only IDR 100,000, even smaller for a number of gold selling platforms. Because now gold can be purchased online or in installments.
Conclusion
Overall, mutual fund investments provide more benefits than investments in real estate and gold. However, in fact there is no best investment instrument, there are only investments that are most suitable for your risk profile and plan.