Swan.my.id - Indonesia - Mutual funds remain one of the investment options available to Indonesians who want diversified exposure to financial assets without selecting individual securities themselves.
A mutual fund, known in Indonesia as reksa dana, collects money from multiple investors and invests it in a portfolio of securities. The portfolio is managed by a licensed investment manager based on the fund’s investment policy.
As of August 31, 2026, Indonesia’s mutual fund industry recorded net asset value (NAV) of Rp652.88 trillion. However, the industry also recorded net redemptions of Rp8.5 trillion during August, according to data from the Financial Services Authority (OJK) cited by detikFinance.
What Is a Mutual Fund?
A mutual fund is an investment vehicle that pools money from investors and allocates it into financial instruments such as money-market securities, bonds, or stocks.
Instead of managing every investment individually, investors own units of participation in a mutual fund. The investment manager then manages the underlying portfolio according to the fund’s prospectus.
There are three main parties involved in a mutual fund:
- Investment manager: Selects and manages the securities portfolio according to the fund’s investment policy.
- Custodian bank: Safekeeps the mutual fund’s assets, records transactions, and calculates the fund’s daily NAV.
- Mutual fund selling agent (APERD): Distributes mutual fund units to investors, including through digital investment platforms.
The value of an investor’s holdings is linked to the fund’s net asset value per unit, or NAV per unit. This figure is calculated based on the total value of the fund’s assets after liabilities are deducted and divided by the number of outstanding units.
When the NAV per unit increases after an investor purchases units, the value of the investment rises. Conversely, a decline in NAV per unit reduces the investment value.
Types of Mutual Funds
Mutual funds are generally classified according to the assets they hold. Four major categories are money-market funds, fixed-income funds, balanced funds, and equity funds.
1. Money-Market Mutual Funds
Money-market funds invest primarily in money-market instruments and debt securities with maturities of no more than one year.
They generally carry lower investment risk than other mutual fund categories. As a result, they may be considered for short-term financial goals or reserve funds.
2. Fixed-Income Mutual Funds
Fixed-income funds allocate at least 80% of their assets to debt securities, including bonds.
Their risk level is generally considered low to moderate. They may be used for medium-term investment objectives, although their value can still fluctuate when bond prices change.
3. Balanced Mutual Funds
Balanced funds combine stocks, bonds, and money-market instruments. Each asset category generally represents less than 80% of the portfolio.
Because they combine several asset classes, balanced funds can offer a middle ground between fixed-income and equity funds. Their risk level is generally considered moderate.
4. Equity Mutual Funds
Equity funds allocate at least 80% of their assets to stocks.
Because stock prices can experience significant fluctuations, equity mutual funds generally carry higher risk. They are commonly associated with longer investment horizons.
Other mutual fund structures include protected mutual funds, index funds, exchange-traded funds (ETFs), and Sharia-compliant mutual funds.
Indonesia's Mutual Fund Industry in 2026
The Indonesian mutual fund industry had a NAV of Rp652.88 trillion as of August 31, 2026.
However, August also saw net redemptions of Rp8.5 trillion. Net redemption occurs when the value of units sold back by investors exceeds the value of new purchases.
The data shows that the size of the industry can change as asset prices and investor flows move.
OJK data also showed that Indonesia had 31.14 million capital-market investor identification numbers (SID) at the end of August 2026.
The industry’s NAV, however, should not be interpreted as an indicator of future investment performance. Mutual fund values can change daily based on the performance of their underlying assets and investor activity.
Benefits of Investing in Mutual Funds
Mutual funds offer several features that can make them accessible to investors.
Diversification is one of the main advantages. A single mutual fund can hold multiple securities, reducing dependence on one individual asset.
Another benefit is professional management. Instead of selecting securities independently, investors rely on an investment manager to construct and monitor the portfolio.
Mutual funds can also be started with relatively small amounts. This allows investors to build investment habits without immediately purchasing a large portfolio of individual stocks or bonds.
Some investors also use mutual funds for regular investing. Investing a fixed amount periodically is commonly known as dollar-cost averaging.
However, these advantages do not eliminate investment risk. The value of a mutual fund can decline, and investors may receive less than their original investment.
What Are the Risks of Mutual Funds?
Mutual funds are not risk-free investments. Their NAV can rise or fall depending on the securities held in the portfolio.
Common risks include:
- Market risk: The prices of securities in the portfolio may decline.
- Liquidity risk: Large redemption requests can require time to sell underlying assets.
- Default risk: Bond issuers or other counterparties may fail to meet their obligations.
- Economic and regulatory risk: Changes in economic conditions, regulations, or political developments can affect asset prices.
- Liquidation risk: A mutual fund may be dissolved and liquidated under conditions established by applicable regulations.
Mutual funds are also different from bank deposits. They are not bank deposits and therefore are outside the deposit guarantee program administered by the Indonesia Deposit Insurance Corporation (LPS).
The assets are held separately by a custodian bank, while mutual fund activities are supervised by OJK. However, regulatory supervision does not guarantee that the investment value will remain stable.
Mutual Funds vs Deposits vs Stocks
Mutual funds, deposits, and directly purchased stocks have different structures.
With mutual funds, the portfolio is managed by an investment manager and its value changes according to NAV per unit. A bank manages deposits, while investors buying stocks directly make their own investment decisions.
Deposits are covered by LPS protection up to Rp2 billion per depositor per bank, subject to applicable requirements. Mutual funds and stocks are outside this deposit guarantee.
Liquidity also differs. Mutual fund redemption proceeds are generally paid no later than seven exchange business days after a complete redemption request is received, subject to applicable regulations.
Stocks are traded on the exchange, while deposits generally have a predetermined maturity period.
How to Start Investing in Mutual Funds on Pluang
Investors can access mutual fund products through the Pluang application.
According to the information provided by Pluang, mutual fund purchases start from Rp100,000. Available products include money-market, fixed-income, balanced, and equity mutual funds, including conventional and Sharia-compliant options.
Pluang works with PT Sarana Santosa Sejati as a licensed and OJK-supervised Mutual Fund Selling Agent (APERD). Mutual fund transactions are also recorded at the Indonesian Central Securities Depository (KSEI).
Investors can follow several basic steps:
- Open the Pluang application and select the Mutual Funds menu.
- Choose a product and read its prospectus and fund fact sheet.
- Select Buy and enter an investment amount starting from Rp100,000.
- Choose an available payment method, such as virtual account or GoPay.
- Complete the payment and monitor the mutual fund units in the portfolio.
Investors should review the fund’s investment strategy, fees, risks, and historical performance before purchasing. The appropriate product also depends on the investor’s risk profile and financial goals.
Mutual Fund Fees on Pluang
Based on the information provided by Pluang, mutual fund purchases using GoPay are subject to a Rp4,500 transaction fee, plus 11% VAT on the administration fee.
Purchases through a virtual account carry a Rp5,500 transaction fee, also subject to 11% VAT on the administration fee.
Pluang states that it does not charge transaction fees for mutual fund redemptions or switching. However, other costs may apply at the product level, depending on the mutual fund’s prospectus.
Investors should therefore review the fund documents before making a transaction.
Frequently Asked Questions About Mutual Funds
What is a mutual fund?
A mutual fund is an investment vehicle that pools money from investors and invests it in a portfolio of securities managed by an investment manager.
What are the main types of mutual funds?
The four main categories are money-market, fixed-income, balanced, and equity mutual funds. Other structures include index funds, ETFs, protected funds, and Sharia mutual funds.
Are mutual funds guaranteed by LPS?
No. Mutual funds are not bank deposits and therefore are outside the LPS deposit guarantee program.
How much do I need to start investing in mutual funds on Pluang?
According to the information provided by Pluang, mutual fund purchases start from Rp100,000.
Conclusion
Mutual funds provide a way for investors to access diversified portfolios managed by professional investment managers.
The four main categories—money-market, fixed-income, balanced, and equity mutual funds—have different asset allocations and risk characteristics. Choosing between them should depend on the investor’s financial objectives, investment horizon, and risk profile.
Indonesia’s mutual fund industry recorded NAV of Rp652.88 trillion as of August 31, 2026. At the same time, investors should remember that mutual funds are investments, not bank deposits. Their value can rise or fall, and they are not covered by LPS deposit insurance.
Before investing, investors should read the prospectus and fund fact sheet carefully and understand the potential risks, fees, and investment strategy of the selected product.