Peek How Millennials Invest in the Capital Market

Jakarta, CNBC Indonesia - Investment Manager/President Director of BNI Asset Management, Putut Endro Andanawarih, said that millennials have become investors in the capital market where the chosen instrument is stocks.

"If you look at the profile of young investors, millennials think why money market mutual funds are used for later. This is suddenly a lot of millennials investing in stocks," he said in the BNI Investime Week "Health and Wealth Postpandemic" Webinar inspiration Talk in Jakarta, Wednesday. (7/4/2021).

Even though it is still green, according to him, this young investor is good at allocating his funds. According to him, this investor makes purchases (top up) on a regular basis.

"Every time you get paid, you save. The concept is like that. It really prepares for future wealth. Children are smart now, this is a good way to do it," he said.

In addition, they also take advantage of the auto debit feature. This feature is called an anti-forgetting investment because the funds for investment will automatically go into predetermined posts every month.

"This is what investors can now take advantage of their investment returns," he said.

Although it looks easy, according to him, investment requires knowledge, one of which is by studying the risk profile. Because everyone has a different risk profile.

"If conservatives continue to choose stocks that are not suitable, first identify the risk target," he said.

However, regardless of the asset class, equity mutual funds have good growth opportunities. Conditions of low interest rates plus stock volatility that is still happening.

If he believes there is a recovery, he continued, according to him, stocks can provide optimal returns. Even so, it must be remembered, a large return is also accompanied by a large risk.

"Don't just obey it, it's not like we are rich. There must be a set aside in the future. In the money market, the buying process is not all at once. But when there is income, little by little," he concluded.

People are starting to learn how to find safe instruments to invest in. One of them is by entering into instruments such as money market mutual funds. In addition, you can also enter stock instruments through index mutual funds.

He emphasized, how to start investing must be done now to see the future. It doesn't matter if you start with a small nominal, for example, Rp. 100 thousand.

"Don't wait for an improvement (the economy), try small things. It's called an investment to buy the future," he said.

The essence of investing is also shared by one of the directors of a public company, namely PT Sido Muncul Tbk (SIDO), Irwan Hidayat. According to him, how SIDO can still survive today because of the investments made in the past.

"The product is good, because of our preparation so far. 5,10,20 years ago, this is called strategy," he said

Link. https://www.cnbcindonesia.com/investment/20210407133727-21-235941/intip-cara-milenial-investasi-di-pasar-modal