Get to Know about Investment Instruments

Hi Moduers,

Is investing important? You must have understood the importance of investing since young after reading this article, if otherwise let’s read the article first! 😊


There are different options of investment instrument that are available for you. However, before choosing the investment instrument that is suitable for your profile, it is important to understand the characteristics, features and differences between each investment instruments. Some investment instruments that are commonly chosen are time deposit, mutual funds and bonds. This article will discuss about variety of investment instruments to help you choose the most suitable investment instruments for your profile.


Before discussing about the characteristics, let’s first understand about the definition of each investment instrument: time deposit, mutual fund and bonds.


Quoting the definition available in OJK dictionary (OJK-Pedia), below is the definition of the above-mentioned investment instrument:

  1. Time Deposit

Deposits that can be withdrawn can only be made at a certain time based on the agreement between the depositing customer and the bank.

  1. Mutual Fund

The instrument used to raise funds and the investor community is then invested in a securities portfolio.

  1. Bonds

Stamped documents stating that the issuer will pay back the principal debt at a certain time, and will periodically pay coupons to bondholders; Usually, bonds are bound with a collateral that can be sold to pay off the claim if the issuer fails to pay the coupon and principal at maturity.


The three investment instruments also have different characteristics, as follows:


Time Deposit

Mutual Fund

Retail Bonds

(Sukuk, ORI)


1-12 months


3 years



Non-tax object


Minimum amount

Rp 5 million*

Rp 10 thousand

Rp 1 million


Need to wait until maturity, otherwise there will be penalty


After Minimum Holding Period

Capital Gain



Yes, before maturity

*subject to Bank’s policy


Your investment instrument must match with your profile and investment horizon. You could also choose investment instrument whose characteristics suit your need. For example, if you would like to invest with horizon longer than 3 years with minimum amount, then perhaps you could opt for Mutual Fund that could be started from Rp 10 thousand without maturity period. Mutual Fund is also flexible and can be redeemed anytime without penalty. Aside from that, you could invest regularly anytime: monthly, weekly or even daily especially with this affordable low minimum amount! In addition, you don’t need to worry as your Mutual Fund will be managed by professional Investment Manager who are experienced in portfolio management.


Nowadays, it is also easy to start investing in Mutual Fund! You could download Moduit application in your smartphone and complete registration. Yes, it is as simple as it sounds! So wait no more and start your investment journey to reach your financial goal.