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Mutual Funds or Deposits, Which One Is More Profitable?

Mutual Funds or Deposits, Which One Is More Profitable?

Nowadays, some people have begun to realize the importance of investing. Not only those who are elderly, the younger generation today has also begun to understand and start investing.

Of the many investment instruments on the market, mutual funds and deposits are the instruments chosen by those who are just starting to learn to invest. Maybe you are one of them.

For beginners, investing in stocks may be considered too risky and requires complicated learning. So that beginners prefer investment instruments that do not require complicated management such as mutual funds or deposits.

Well, some of you may be the one who asks, which is more profitable, mutual funds or deposits? This is a common question that is commonly asked by investors. As an investor, surely you want the investment made to provide maximum profit, right.

Which is More Profitable? Mutual funds or Deposits?

Before you decide which one is more profitable and which investment you will choose, you should first study the advantages and disadvantages of each of these investment instruments:

1.Mutual funds

There are several advantages when you invest using mutual funds, including:

  • For its management, mutual funds are managed by trusted and professional investment managers, so you don't have to worry and worry, because the investment manager will manage your investments.

  • Buying and selling mutual funds is more flexible, or in other words, it can be done at any time without being charged a fee.

  • Mutual fund placement can be adjusted to the risk factor you want. There are many choices of mutual funds according to their risk factors, so the investment placement can be adjusted to your risk profile.

  • It does not require a large capital. In Jenius savings from Bank BTPN, you can start investing in mutual funds starting from IDR 10 thousand.

  • In collective finances, there's a diversification of investments, so you can invest not only in one investment instrument. That way you can minimize the threat of loss. 

  • Mutual funds do not include tax-deductible assets.

  • It is relatively safe because you can minimize risks through investment diversification and the value is also relatively stable.

With the various advantages that have been mentioned above, it does not mean that mutual funds do not have disadvantages. Here we summarize some of the disadvantages of mutual funds for you:

  • Mutual funds are not included in the LPS guarantee. So that all kinds of losses that occur are your own responsibility as an investor.

  • Exposed to liquidity risk, which means there is a risk where the public investment fund management company where you make a late investment or even defaults on the investment you have placed.

  • There is a risk of placing mutual fund investment funds (investment instruments) bankrupt, such as stocks or bonds from companies that are usually chosen as one of the instruments for mutual fund investment placements experiencing bankruptcy.

  • The risk of closing a mutual fund if the funds under management are few or less than the provisions.

So even though ordinary mutual funds are considered safe and profitable investments, it does not mean that they are free from risk, there are still risks that can occur.

If you are interested in investing in mutual funds, you can invest through Jenius Bank BTPN. Jenius mutual funds are a simple way to grow money, here are some of the conveniences you will get:

  • Practically open an account.
  • Easily monitor the portfolio.
  • Info on the composition of investments according to the risk profile.
  • Transactions are connected to the Active Balance.
  • History is neatly recorded.
  • Recurring purchases are automatically scheduled with Auto Invest.


Having previously discussed the advantages and disadvantages of mutual funds, now at this point we will discuss what are the advantages and disadvantages of deposits.

Deposits are also an investment option that many people choose from those who are just starting to try to invest. In order for your investment to be right on target, here are some of the advantages of investing that you need to know:

  • Unlike mutual funds, deposits are assets guaranteed by LPS. This guarantee by LPS means reducing the risk of default if the bank where you placed the funds goes bankrupt. But this guarantee can return your funds a maximum of IDR 2 billion.

  • The profit sharing or profit value for the placement of your deposit funds is a fixed or certain value because the profit sharing of the deposit is not affected by market movements.

  • The advantages of deposits when compared to bank products such as savings, deposit interest rates are higher when compared to savings.

Just like mutual funds, in addition to having advantages, deposits as one of the investment options also have disadvantages. Some of the disadvantages of deposits are:

  • To be able to open a deposit, it takes a larger capital than a mutual fund. Usually in some banks, a minimum of IDR 10 million is needed to open a deposit.

  • Deposits have a nominal placement period, usually on deposits funds must settle for at least 1 month and if withdrawn before maturity, they will be subject to penalties.

  • Unlike mutual funds, deposits are investment assets that are subject to taxation for the profits provided.

  • Deposits are one type of investment that is weak against inflation.

Those are some of the advantages and disadvantages of deposits, if you want to open a deposit at Jenius Bank BTPN, there are time deposits whose deposits, tenors, and renewal methods are free for you to determine yourself under the name Maxi Saver.

From the explanation above, you can already distinguish between mutual funds and deposits, right? Which is better?

Actually, there is nothing better than both, but it's best to choose an investment that suits your goals and risk profile.

You can choose a deposit if you want a definite profit and worry about big risks. Well, if you want an investment that can be taken at any time without having to wait long and without being penalized, you can choose a mutual fund. You can also choose a mutual fund if you don't mind with big risks and expect a fairly high profit share as well.

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