As one of the investment types that has been widely chosen by investors lately, Mutual Funds is not immune to the influence of geopolitical aspects. In 2030, Indonesia is expected to gain a demographic bonus, and this will have a significant impact on investments.
This means that business, economy, social, and political aspects are inseparable units. So, what is the connection between the demographic bonus and one of the investment types? Read the explanation below!
The Connection between Demographic Bonus and Mutual Fund Investment
To understand the connection between demographic bonus and investment, you must first know the brief definition of the term demographic bonus. The definition of the demographic bonus is the potential for economic growth that arises from the impact of changes in the population's age structure.
In other words, a country with a demographic bonus means having a larger population of productive age (15-64 years) than non-productive age. This indicates that the working-age population is higher than the population that is not working or retired.
This condition must be utilized by the government and the population of countries that potentially have a demographic bonus. Because the macro and microeconomic scale will be greatly assisted by this condition. Therefore, take a detailed look at the connection between the demographic bonus and investment:
Mutual Fund Investments Continue to Grow The potential demographic bonus in Indonesia is closely related to Mutual Fund investments that will continue to grow from year to year. One concrete example is already beginning to emerge, where the number of novice investors of working age is increasingly interested in investing.
For example, the Indonesia Central Securities Depository (KSEI) recorded that in 2023, more than 11 million investors invested their funds in Mutual Funds .
This number is different from 2022, where the number of Mutual Fund investors was only around 9 million people. This significant year-on-year increase is a good start for the growth of managed investment funds.
Increasing Potential in Various Industry Sectors The main point of the term demographic bonus is the increase in the number of working-age and capable populations. This affects the potential increase in various industry sectors, influencing the macro and microeconomic rotation of Indonesia.
For example, labor-intensive industries such as agriculture, textiles, construction, tourism, and so on have the opportunity to experience growth. Based on data from KumparanBISNIS, almost all labor-intensive industries have experienced an increase in investment, especially post-pandemic.
This is evidenced by the period from 2013, when the investment in labor-intensive industries reached IDR 398.6 trillion. Significant investment growth occurred in 2021-2022, reaching around IDR 901 trillion.
This fact is evidence that the demographic bonus condition has the potential to increase investor interest in investing in various industry sectors, especially labor-intensive industries.
Achieving Investment Realization The most evident connection between the demographic bonus and investment is the potential achievement of investment realization in the future. This is related to the previous points that are interrelated.
In other words, if the demographic bonus is achieved, the working-age population of Indonesia will increase, affecting a high rotation of the economy. Consequently, stable and good economic conditions will attract the desire of investors to invest.
If many investors start to be interested in investing, then the realization of investment will be easily achieved. This must be utilized by the government by providing job opportunities and good education so that the demographic bonus population has high quality.
Young People Dominating Investments Sometimes, the impression is that investments are only for adults or mature individuals. However, the fact is that currently, investments, especially Mutual Funds , are increasingly popular among young investors such as millennials and Gen Z.
The demographic bonus will produce many young generations that play an important role in dominating investments. This must be utilized by companies with investment products to attract the interest of young people in investing.
Mutual Fund Benefits for the Demographic Bonus Population
Looking at the potential demographic bonus and its relationship with investment, you must also know various investment benefits, especially Mutual Funds for the demographic bonus population.
As explained briefly above, Mutual Fund investments have the potential to be chosen by investors lately. Therefore, take a look at the various benefits of Mutual Funds for those included in the demographic bonus below:
The first advantage is suitable for novice investors who previously had no experience in the investment world. In conditions of a country with a high demographic bonus, emerging generations are modern generations that rely on practical things.
Therefore, Mutual Fund investments are suitable for young generations to invest. There is no need for in-depth money market analysis or a lot of time to get information about investments.
Affordable Initial Capital Currently, it is no longer relevant to invest by waiting for a large amount of accumulated money. This particular advantage of Mutual Funds makes many investors interested, namely affordable initial capital.
Your initial capital can be allocated and saved as Mutual Fund investments . What you need to do is simply choose the right Mutual Fund investment instrument or product.
Mutual Funds are known for being low-risk investments compared to other types of investments. However, this benefit is also dynamic and influenced by various aspects such as geopolitical aspects.
This, in turn, becomes an advantage for prospective investors from the demographic bonus group. Therefore, it is not surprising that the interest in Mutual Fund investments from productive age investors is increasing.
The easy access of Mutual Fund investments becomes its own advantage to attract the interest of the demographic bonus population. The practical aspect that is tied to the character of the productive age generation in the demographic bonus condition is suitable for the nature of Mutual Fund investments.
For example, easy access to Mutual Fund investments by simply logging in or registering on an application. Young investors do not need to have high mobility by visiting the banks.
Choose DBS Treasures Priority Banking Products to Benefit from the Demographic Bonus
In conclusion, the demographic bonus condition must be utilized as an aspect that influences the increase in investment. Mature and novice investors can start considering choosing the most appropriate investment products. One of them is choosing DBS Treasures priority banking products that have various advantages.
DBS Treasures priority banking offers various conveniences in investing. There is a diversification of investment funds that minimize risks and fund management by professional Investment Managers. In addition, buying, selling, switching, and even the Single Investor Identification (SID) registration process can be done through the digibank by DBS Application.
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Take advantage of Indonesia's demographic bonus to increase the number of investors in Mutual Fund investments! The goal is to make the country's economy more stable, and the economic and welfare conditions of the population improve. For more complete information about products, click here .
