Reasons Why Investment in Equity Mutual Funds is Suitable for Millennials

23 May 2023

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How to open Mutual Funds

The millennial generation is a generation that is very sensitive to investment. This is because there is easier and faster access to investment-related information via the Internet, as well as the ability to learn about investing for yourself. Investment itself according to the millennial generation is one of the keys to achieving financial freedom and building wealth in the future.

There is no need to doubt the importance of investing in the long term. Long-term investment has the potential to provide large profits. Therefore, the millennial generation needs to take steps to start investing. One investment that is suitable for the long term is an Equity Mutual Fund.

There are several advantages of Equity Mutual Funds that you need to know, which include:

1.  Affordable Investment amount

You can buy Equity Mutual Funds with an affordable nominal, starting from Rp. 100 thousand depending on the provisions of each Equity Mutual Fund. In contrast to RDN stock, the minimum purchase is 1 lot or 100 shares at a time. So investors must start with a larger capital.

2.  Attractive investment return potential

Compared to other types of Mutual Funds, Equity Mutual Funds have the potential for quite attractive annual returns. But you still have to pay attention to the risks. The higher the potential return offered by a Mutual Fund product, the higher the risk that will be borne by investors.

3.  Flexible and Suitable for Long Term

Equity Mutual Funds are suitable for investing as long-term investments. You, as the millennial generation, can be flexible when determining the desired investment timeframe for stock mutual funds, the recommended investment period is at least 5 years.

Maybank Indonesia provides services to invest in Mutual Funds and one of them is Equity Mutual Funds. Click here for a guide to opening the Maybank Equity Mutual Fund on the M2U ID App.

Investment in Equity Mutual Funds has several advantages over the long term compared to other investment instruments such as deposits and bonds. One of them is investment portfolio diversification. In purchasing Equity Mutual Funds, investors' funds will automatically diversify into several stocks and several sectors based on the Investment Manager's observations.

In addition, Equity Mutual Funds have high investment liquidity. Equity Mutual Fund investments can be sold at any time according to the wishes of investors without having to wait for a certain time. However, you still have to pay attention to liquidity risk liquidity risk

Start investing in Mutual Funds on the M2U ID App.You can get various types of investment options that are suitable for the millennial generation here!