Deposit and mutual funds are two kinds of profitable investment to choose. To define which one is the best for you, it might need some considerations. Lots of things to consider to ensure the investment you wish to spend on is really suitable for your necessity. Some information below will tell you about the difference between deposit and mutual funds along with the complete review just for you.
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Differences of Deposit and Mutual Funds
Before choosing deposit or mutual funds, it is important for you to know the difference. Deposit is one of the banking products in the form of saving on a particular time period. The saving offers you a fixed rate which is agreed between the customer and the related bank. According to the constitution, Deposit is a saving that can only be taken at a particular period based on the account and the bank contract.
Many people use the deposit as an ideal saving. Deposit offers a higher rate if it is compared to ordinary savings. Deposit is indeed offered a higher rate. However, the one you have to remember is, both deposit and withdrawal can only be done in a fixed time. If you take the saving before the time that has been arranged before, you might need to pay some penalty.
Never take the deposit before the due date and make sure you deposit more. The bigger and longer funds to save, the greater the profit that you might get. If your periodical saving is running on schedule, then the deposit will be one of profitable investment you can have.
As stated by PT Bursa Efek Indonesia in 2015, deposit offered profits that are relatively stable, compared with other investment product such as stocks, gold, and government bond. On the same year, a deposit is placed as the second greatest investment profit after stocks in 7,21%. In other words, the chance of deposit investment is great and remained good along the time being.
On the other hand, a mutual fund is a medium to collect funding from the investor. The funding will be invested in the form of an investment portfolio. The process of investment will be done by the authorized company, the investment manager.
The investment manager will be in charge of managing the funding. The management will be advanced into funding placement on various securities starting from stocks, bonds, up to money market. A mutual fund offers two periods: short-term period and long-term period. If you choose mutual funds as an investment, then you may choose which period you may have for your necessity.
The profit that you can get usually comes from the interest that has been noted on Net Asset Value. The property that you might get should be saved in the custodian bank which is unaffiliated with the investment manager. The custodian bank works as the collective deposit. The Investment Manager will gain fee that is calculated by the percentage of asset value. Usually, the percentage can be seen among the investment applicant.
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Choosing long-term and short-term investment
Not only knowing the differences between the two investment, you also need to consider the period of investment when choosing the best for you. If you like to invest in mid-term investment, then a deposit is a good one. Generally, you will be given some option, starting from 1, 3, 6, 12, up to 24 months. This option should have been considered carefully.
Choose the best investment period according to your necessity. If you want to deposit as your emergency funding, then choose the short-term option. Instead of gaining profit, you will only have to pay some penalty fee when withdrawing the deposit before the due date.
Meanwhile, if you want to look for a long-term investment, mutual funds are the best option. Mutual funds are ideally recommended for you who have financial planning in more than 5 years. Financial planning like studying abroad, pension preparation funds, and business capital funding can be supported by performing mutual funds investment.
The best long-term mutual funds that you can invest to is mutual stocks. The mutual fund, theoretically, does not have profit certainty. However, when the economic performance still increasing, the company profit will also be increased. Stock price will follow the trend and much profitable for you.
Mutual stock investment is designed for the people who like to take a long-term investment. The risk and the performance in a short-term period are not always positive. However, if you believe that the future financial is better than today, then you need to invest in a mutual stock.
A stock price is a representation of the company’s performance. If the economic performance is better, then it will increase the stock price and also the price of the mutual stock itself. When you have a positive feeling about the Indonesian financial condition, then you need to consider mutual stock starting from today.
The profit of deposit depends on investment rate
Lots of benefits you will gain from a deposit. Beneficial investment medium, higher interest rate rather than ordinary saving, accessible deposit interest and lower risk of loss are some of the benefits of investing your funding to deposit.
As a result of almost having no risk, deposit offers a benefit that depends on the interest rate produced. The interest rate of deposit is generally more competitive compared to the interest rate of other saving products. If the interest rate of ordinary saving only beneficial for the administration fee, then it’s far more different in a deposit.
A deposit may give 3 times interest rather than saving interest. For periodic deposit, in a month only, a deposit may gain interest up to 7,5%. This percentage is far higher when it’s compared by saving interest. This is the reason why lots of people interested to invest their funding in a deposit.
If you want a safe and low-risk investment, you can choose the deposit. Make use Dana Simpan Deposito from Danamon which make your deposit activity safe and profitable. Free accounting and penalty fee when withdrawing before the due date up to the funding flexibility, Dana Simpan Deposito Danamon is indeed suitable for you. Good luck!