Get to know more about the types of Mutual Funds

25 March 2025

Mutual Fund is one of the most popular investment instruments among the public due to its convenience and flexibility. In simple terms, a Mutual Fund is a platform to collect funds from the public which are then managed by investment managers into various financial instruments, such as stocks, bonds, and deposits. By investing in Mutual Funds, investors don't have to go through the hassle of analysing the market on their own, as the funds are managed by experienced professionals.

Understanding Investor's Risk Profile Before Choosing Mutual Fund Type

Before starting to invest, it is important to understand the risk profile of each investor. A risk profile describes a person's comfort level and tolerance for fluctuations in investment value. In general, there are three types of investor risk profiles:

• Conservative

  Prioritises capital safety and avoids high risks. Investors with a conservative risk profile are more suited to money market or fixed income mutual funds.

• Moderate

  Willing to take higher risks for greater potential returns. Balanced funds are often the choice for investors with a moderate risk profile.

• Aggressive

  Ready to face market fluctuations in order to get high returns. Equity funds are the top choice for investors with an aggressive risk profile.

Types of Mutual Funds and Their Advantages

1. Money Market Mutual Fund

   This type of mutual fund has all of its investments placed in money market instruments such as time deposits, Bank Indonesia Certificates (SBI), and bonds with maturities of less than one year.
   Advantages:

   • Low risk with high stability.

   • Suitable for beginner investors or those who want to save funds in the short term.

   • Higher potential return compared to regular deposits.

2. Fixed Income Mutual Fund

   This mutual fund has the majority of its investments placed in bonds or debt securities with medium to long term maturities.

   Advantages:

   • Higher return potential than money market funds.

   • Lower risk than equity funds.

   • Suitable for investors with conservative to moderate risk profiles.

3. Balanced Mutual Fund

   This fund allocates its investments to various instruments, such as stocks, bonds, and money market, with varying proportions.

   Advantages:

   • Flexibility in optimising potential returns.

   • More manageable risk than equity funds.

   • Suitable for investors with a moderate risk profile.

4. Equity Mutual Fund

   This mutual fund has the majority of its investments placed in shares of companies listed on the stock exchange.

   Advantages:

   • Highest potential returns in the long run.

   • Suitable for investors with an aggressive risk profile.

   • Provides the opportunity to earn significant capital gains.

Why are Mutual Funds Attractive?

Mutual Fund investment has a number of advantages that make it attractive to different types of investors, including:

• Accessibility, with a relatively small initial capital, anyone can start investing in Mutual Funds.


• Diversification, the investment portfolio is spread across a wide range of assets, reducing the risks involved.


• Managed by Professionals, experienced fund managers will manage the fund, so investors do not need to do in-depth analysis on their own.


• High Liquidity, investors can cash out their investment easily without having to wait for a certain period of time.


• Easy Transaction, Mutual Fund investment can now be done digitally through banking applications such as M2U ID App, mobile banking from Maybank Indonesia, which provides convenience for customers to start investing in Mutual Funds in the palm of their hand.

Benefits of Mutual Fund Investment via M2U ID App

Investing in Mutual Funds through M2U ID App provides various benefits such as:

• Investment can start from IDR 100,000

  You can start investing in Mutual Funds through M2U ID App with a very affordable amount, starting from IDR 100,000. This makes it easy for anyone to start investing without having to wait for a large capital.

• Diverse Product Choices

  M2U ID App provides a wide selection of Mutual Funds such as equity, fixed income, mixed, and money market Mutual Funds that can be adjusted to the investor's risk profile and investment objectives.

• Periodic Investment Feature Available

  M2U ID App offers a regular investment feature that allows you to schedule regular investments automatically. You can choose the amount of investment allocation, frequency of purchase (once only, 12, 24, 60, 120 months), and monthly debit date. This feature helps you stay consistent in investing without having to monitor the market all the time.

• Switching Feature Available

  The switching feature allows you to switch your investment from one Mutual Fund product to another Mutual Fund product managed by the same fund manager. This helps you diversify your portfolio to suit market conditions and opportunities.

• Sell Mutual Fund Assets on M2U ID App

  M2U ID App allows you to withdraw your Mutual Fund assets by selling Mutual Fund assets with a minimum amount of Rp100,000. This feature gives you the flexibility to access your investment funds whenever you need them.

Mutual Fund Registration and Buy Guide via M2U ID App:

1. Login to M2U ID App and click the yellow ‘+’ button on the account view
2. Select ‘Mutual Fund’
3. Select and click the yellow ‘+’ button for the Mutual Fund product you wish to purchase. Click (i) for detailed product info
4. Choose Fund Source
5. Enter the investment amount
6. Choose Time Period. Select the debiting date if you choose a term other than ‘Once Only’ then click ‘continue’
7. Tick the statement box below and click ‘Continue’
8. You are not registered yet. Click ‘Continue’ to register
9. Tick the statement box below and click ‘Next’
10. Fill in the Customer Profile and click ‘Next’
11. Fill in your Risk Profile and click ‘Next’
12. Verify your transaction details, then click ‘Confirm & Request TAC’
13. Enter your Secure2u passcode
14. Your Mutual Fund Registration and Purchase has been successfully processed.

Don't delay the opportunity to gain profit through Mutual Fund Investment. Download M2U ID now and start your investment journey with Maybank.