Investment mutual funds better than Gold – So far, we have known the gold as one of the many investment instruments done by investors as well as lay people. The need for gold which is always growing and relatively cost rises for the long term have made gold as one of the favorite investment many people. In addition, gold is an investment product that seems immune to inflation, by storm due to a stable value tend to ride in any condition.
But actually, if looking a bit into the other investment types, there are many choices that we can make appropriate alternative financial plans we make. One of them is the mutual fund investments have several advantages compared to gold investment.
Reasons this Investment mutual funds better than Gold
The general public, as well as more investors, to invest in gold than mutual funds. However, despite losing popular mutual funds compared to investing in gold, are in fact mutual funds have many advantages compared to gold. From the results of a survey, it is known that people who put their money in gold investment as much as 60% while investment in mutual funds is not more than 5%.
The results of the survey were very striking, but not surprising because gold is already known by the public long ago and many old investors often give advice to novice investors to take on investing in gold, because of its nature which tends to be safe from inflation.
Profit Investment mutual funds compared with gold
Investment mutual funds own appears along with the presence of the capital market and stock. Therefore, it is important for the public to lay the presumably more acquainted with this type of investment before plunging inside.
Here are a few types of advantages provided by mutual funds compared to gold investment.
1. Return mutual funds are higher than gold
The benefit is one of the goals of investing. Therefore, comparison of investment which can provide greater feedback return will definitely be a calculation time would pick the investments. When we compare data the profit or return between mutual funds bonds and gold in the last 5 years listed on Bloomberg, then gold prices will be higher because of the value of the rupiah against the dollar, but profit/return of gold still under the mutual funds’ bonds.
Mutual funds own bonds have a risk profile similar to the gold. Whereas when using stock mutual funds, then the comparison is less fitting because stocks have a greater risk. Comparison of these data, showing that the benefits of investing in gold tend to fall or stagnate, while the bond mutual fund gains have increased.
2. The minimum capital for Small mutual funds Investment
Different from investing in gold, at least we need to provide funds to purchase at least 1 gram of gold or equivalent to $50, not including rent for a place to store your gold in order to be safe. For mutual funds, you can already make an investment with even minimal funds, i.e. $10.
3. There is no risk of funds Lost just like gold, which is prone to Missing
By investing in gold, then there is a risk to experience loss, due to the physical form of gold, so that storage must be a major concern so that gold remains secure. While mutual funds are not mutual funds, physical shape as well as interest or dividends on stock, storage is fully turned over to the bank custodian (bank delegated the responsibility of managing and storing the treasures of mutual funds), then as an investor, We need not be concerned with the risk of losing.
4. no storage costs like gold
Because the treasure of mutual funds are managed and stored by custodian banks, then the investors do not have to pay additional costs for storage should like when investing in gold. For gold investment, then it is necessary that there is a safe deposit box at the bank, and the cost of the rent was not arguably cheap, ranging from $40 to $50 per year for gold size small, and could be said to be almost every year the cost of the rent is going up.
5. easy when making Investment Diversification
When we invest in gold, then if something happens and the gold price decline or the Middle thus shrank, then the choice can be done only two, namely maintaining gold belong to you or sell it at a price that could be going to make remedies. In other words, there is no diversification investment you can do related to investment gold.
Whereas in mutual funds, the funds that You input in mutual funds not only will be played on 1 stock or bond, but to a variety of stocks and bonds, making the risk is lower.
6. Managed Professional investment managers
If we invest in gold, then all related decision-making for sale or whether gold, entirely in our hands, so that knowledge of the analysis of the movement of the gold is very important for us to master this. In contrast to investment mutual funds, we as investors hand over fully fund management mutual funds to the investment manager which has the ability to manage investments in a more professional, because in addition to having the knowledge, investment manager provided with the expertise, credibility and of course experience, so the smarter in deciding which way the investment we are going to execute.
7. Ease of transactions in mutual funds Online
If we have a certain amount of gold, then we need to come to sell it first to a safe deposit box, took the gold, took him to a store of gold, earn money, and save our money back to the bank, it is quite troublesome. In contrast to mutual funds, to dilute the advantages of mutual funds, You just need to do the orders via the internet through buying and selling mutual funds. And demand for the disbursement of the proceeds of the investment will go directly to a personal account, simple and easy.
8. There is no risk of Counterfeiting
A variety of mine (Antam), as a manufacturer of metal began, including gold, provide protection against their gold production by giving security code embedded in the precious metals and create a security seal on the part of the package. These protection measures are the real threat of counterfeiting gold growing rampant at this time. Whereas in mutual funds, because the form is not a form of physical goods, then it could be said there is almost no risk of counterfeiting that will be faced by prospective investors.
Mutual fund investment with high-profit potential and secure
For investors, playing in just about any type of investment would be able to remain profitable if the outcomes of these investors know very well the kind of investment that was run. If you have deep knowledge about gold investing, then no problem placing funds for investment gold, but if you want to have other investment instrument alternative that is just as good, then there is no harm to try investing mutual funds.