More Profitable Gold Investment or Mutual Fund? Let's Compare!

In investing, of course you consider which investment instrument is the most profitable. Besides returns, Another consideration is the investment risk, especially for beginners. In this case, Mutual funds are known as beginner-friendly investment instruments.

This is because mutual funds are minimal risk. Talking about risk, gold investment is also considered low risk, even tends to be safe. That's one of those gold investment benefits. Moreover, currently there are many gold savings services that can be started from budget minimal, very suitable for beginners.

For this reason, it is natural that you are confused about choosing a gold investment or mutual fund. Well, we've prepared the difference between investing in gold and mutual funds for consideration. Full check!

Investment Capital

Mutual funds are known as cheap investment instruments because they only need a small capital to start. Meanwhile, gold is considered a luxury item that is expensive. In fact, Antam's gold price today, as of April 13, 2022, has reached Rp 1.037.000 per gram.

However, now there are many companies and online applications that provide gold saving services. This will make it easier for you to start investing in gold at a very affordable price.

Investment Value

Gold prices tend to be stable and will continue to rise every year. In a year, gold investment only has an increase or return only 5-20%. Hence, gold investment is not suitable for the short term, but long term.

If you want return maximum, you can wait up to 10 years to get return up to 100% more. in 2020, return gold in the last 10 years has reached 131% of Antam's gold.

It's different with mutual funds. In general, return from mutual funds can be said to be more promising than gold investment. However, return This is also influenced by the type of mutual funds used. If you choose stock mutual funds, of course return obtained tend to be higher.

Liquidity

If you want to withdraw a mutual fund, it will take a few days for it to arrive in your account. Usually counted 3-7 trading days. That's even if it's not cut off on holidays or major holidays.

Meanwhile, gold can be liquidated at any time in the form of cash. However, if you choose a gold savings service and then want to print it physically, it usually takes longer.

Investment Risk

When viewed from the risk of losing value, gold investment is superior to mutual funds. On the other hand, mutual funds have several risks that must be considered, such as the risk of mass liquidity, decline in value, to default.

However, mutual fund products that are not physical tend to be safer from counterfeiting. Meanwhile, gold that has a physical form will be prone to being counterfeited by irresponsible parties.

Investment Diversification

By type, mutual funds are very easy to be used as investment diversification. You can invest several types of mutual funds at one time. Meanwhile, gold can only be diversified when using a gold savings service.

The possibility of diversifying gold bullion does exist, but it can only be done by those who have extraordinary wealth.

Investment Place

Investments in gold and mutual funds are both easy to do. This is because many companies and investment methods are close to investors. Both mutual funds and gold investments can be done online.

Investment Product Management and Storage

If you invest in gold, then the investment manager is yourself, including providing storage. It will be a little different if you deposit gold through safe deposit box. But still, it is you who has to monitor the market, observe opportunities, and target investments.

It's different with mutual funds. You don't have to worry about monitoring the market and managing your portfolio because these tasks are carried out by investment managers. In addition, because mutual funds are not physical products, neither you nor the manager need to prepare a storage area.

Until here the discussion about comparison gold investment benefits and mutual funds. From here, which do you think is more promising?

Image source header: Unsplash

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