5 Reasons Why Millennials Should Try Mutual Fund Investments
5 Reasons Why Mutual Funds Are Ideal for Millennial Investors
- Affordable Starting Capital, Attractive Returns
- Wide Range of Options
- Stable and Resilient Amid Market Volatility
- Managed by Professional Investment Managers
- Ease of Transactions and Digital Access
Mutual Fund Investing, Perfect for Visionary Millennials
Did you know that millennials have become one of the most influential forces in the investment world?
Recent trends show a significant shift in their investment preferences—moving away from stocks and turning to mutual funds as their investment of choice.
But the question is: is this investment instrument truly promising for building long-term financial stability?
In this article, we’ll explore the key reasons why mutual funds are an ideal investment choice for visionary millennials.
5 Reasons Why Mutual Funds Are Ideal for Millennial Investors
After witnessing various market fluctuations, global economic uncertainty, and ever-changing investment dynamics, millennials have become increasingly cautious about the volatility of financial instruments.
At the same time, technological advancements have improved access to financial literacy and introduced simpler, more transparent investment solutions.
This is where Mutual Funds emerge as the ideal alternative investment, because:
1. Affordable Starting Capital, Attractive Returns
One of the main advantages that makes mutual fund investing appealing to millennials is its relatively low entry point. You don’t need a large amount of capital—just a few hundred thousand rupiah is enough to start building a diversified portfolio.
This makes mutual funds ideal for beginner investors who want to learn and develop consistent investment habits.
But this benefit isn’t limited to beginners—many experienced and professional investors still choose mutual funds due to their flexibility.
Mutual funds also offer attractive return potential, especially over the medium to long term. You can grow your wealth while keeping risks under control.
In other words, this investment strikes the right balance between accessibility and opportunity—making it relevant for investors at any level.
2. Wide Range of Options
Another key benefit is product variety. You can choose mutual fund types that match your risk profile and financial goals. This flexibility is perfect for millennials, who often have diverse personalities and financial targets.
Whether you’re conservative, moderate, or aggressive in your risk appetite, there’s a product to suit your needs, such as:
● Money Market Mutual Funds
These invest in short-term money market instruments (under one year), such as deposits and government securities.
They are low-risk and highly liquid, making them ideal for beginners or those looking to preserve capital.
● Fixed Income Mutual Funds
These allocate most of their portfolio to bonds or debt securities. They offer higher returns than money market funds but still carry moderate risk.
Suitable for investors seeking stable returns with manageable risk.
● Equity Mutual Funds
These have the highest return potential among all mutual fund types, as they focus on investing in publicly listed stocks.
Ideal for aggressive investors or millennials with a long investment horizon who are prepared for market volatility.
● Balanced Mutual Funds
Another option is balanced mutual funds, which invest in a mix of instruments such as stocks, bonds, and money market instruments.
This diversified approach allows investors to enjoy a balance between risk and return potential.
As an investor, you don’t need to worry about allocating funds to each asset class—everything is managed by professional Investment Managers.
They will tailor your portfolio strategy based on market conditions and your financial goals.
Interestingly, investors in balanced mutual funds have the potential to earn returns between 10%–20% (or even higher), depending on the fund's asset allocation.
In most cases, stocks are the most profitable component of a balanced fund. Therefore, the greater the portion allocated to equities, the higher the return potential.
3. Stable and Resilient Amid Market Volatility
Another reason why mutual funds are ideal for millennial investors is their ability to remain stable even during turbulent market conditions. This is a crucial factor for those who seek stability in building a long-term portfolio.
Lately, fluctuations in the Indonesian stock market have made many investors anxious about their holdings.
For example, on Tuesday, April 8, 2025, the market opened with significant pressure—
the Jakarta Composite Index (JCI) dropped by 596.33 points (9.16%), and the LQ45 index, which includes top-tier stocks, plummeted by 92.61 points (11.25%).
Given such volatility, it’s natural to question the fate of your funds in mutual investments. However, data shows that mutual funds demonstrate strong resilience.
According to industry experts, even as the stock market comes under pressure, mutual funds have maintained relatively stable performance.
In fact, as of March 2025, total mutual fund assets under management in Indonesia increased, with unit holdings reaching 394.71 billion units—up 0.33% month-on-month.
This growth reflects continued investor confidence in mutual funds, thanks to professional fund management and solid diversification.
4. Managed by Professional Investment Managers
Not everyone has the time, energy, or expertise to actively manage an investment portfolio. That’s where professional Investment Managers play a crucial role in mutual funds.
With their experience and expertise, they make strategic decisions to select assets that align with the goals and characteristics of each product.
Investment Managers don’t work alone—they’re supported by a team of analysts and researchers who actively monitor the market, evaluate trends, and identify opportunities and risks.
This team provides data-driven insights that guide asset purchases and sales within the portfolio.
This approach allows investors to stay involved in the world of investing—including the stock market—without having to navigate the daily complexities of analysis themselves.
While the potential gains may not be as high as direct stock trading, the associated risks are significantly lower.
5. Ease of Transactions and Digital Access
Millennials are known for their fast-paced, digital lifestyles—and fortunately, mutual fund investments are fully compatible with that.
Today, everything from buying and selling to switching between products can be done online—no queues, no paperwork.
Mutual Fund Investing, Perfect for Visionary Millenials
With all its advantages—from affordable entry, professional management, to seamless digital access—Mutual Funds are a smart choice for both beginner and seasoned millennial investors.
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