Medium-term investing is an investment tool that you can use to prepare for your needs for the next 1-5 years. In life, you definitely have short-term, medium-term and long-term plans. Starting from paying tuition Emergency Fund Preparation Preparing for Marriage Expenses Or even set up a retirement fund for yourself or to help your parents.

various investment tools Ready to help you prepare for these future needs. You can choose different investment tools. These are available according to the time frame of the plan. the level of risk you have your budget and many other things

If stocks are a more suitable tool for long-term investing, here are 6 best mid-term investment options for you:

1. Deposit

Fixed deposits are bank savings products that cannot be used for a certain period of time. Usually, this period is from 1 month to 24 months (2 years). Fixed deposit owners are also entitled to receive interest on their deposits. The difference is that the interest on deposits is higher than the interest on ordinary savings.

Interest on this deposit will be automatically credited to the customer’s account every month after 20% tax. The amount of the deposit will vary according to the national benchmark interest rate policy. Policy of each bank and the duration of your choice Make sure you save that. Banks with the highest deposit interest rates.

The main advantage of time-deposit investments is that they are relatively safe compared to other instruments. This is because deposits are financial products from highly regulated financial institutions in this country and are guaranteed by the Deposit Insurance Corporation (LPS).

The disadvantage is that in addition to being tax deductible The potential profit from deposits is not as good as other mutual funds or investment instruments. Not to mention that large banks tend to use lower interest rates than smaller banks. And the minimum deposit can reach IDR 10,000,000.

2. Gold

Gold is an investment tool that is more suitable for medium- to long-term investments. The reason for this is that the price dynamics of this instrument depend on the state of the domestic and international economy. and how investors deal with these economic changes.

Investing in gold can be done in a number of ways. from buying jewelry and gold bars to trading the gold indices in the Forex market The newest way to invest in gold is by using savings mechanisms by banks, pawnshops and other institutions.

The advantage of investing in gold is its appearance and it can increase the confidence of those who wear gold. The disadvantage is that physical gold is easily damaged by chemical reactions if the location and storage method is improper and people are easy to steal.

3. Bonds

The next medium-term investment option is bonds. Bonds or debentures are Securities issued by governments or corporations to earn additional income to run a project.

same as stock Bonds can be traded in the primary and secondary markets. Currently, bonds in the primary market can be purchased for only Rs.1,000,000 while in the secondary market. These instruments can only be traded for Rs.100,000, and bond tenures typically range from one to three years, although long-term bonds are also available.

The amount of 1 million will be returned to you as the principal at the maturity of the bonds. In addition to the principal of the loan Bond investors also receive coupons. (bond interest rate), which is paid once for a specified period of time in accordance with the agreement

4. Fixed Income Fund (RDPT)

If you are reluctant to buy bonds directly You can buy bonds instead. Fixed Income Fund (RDPT) Or Fixed Income Fund (RDO), Fixed Income Fund (RDPT) is a mutual fund with 80% composition made up of bonds, while the remaining 20% ​​is allocated to stocks or money market instruments.

The advantages of RDPT are:

  • You are still eligible to receive coupons and capital gains benefits.
  • Some items can be purchased for as little as IDR 10,000.
  • You don’t have to manage your own assets. There are investment management companies that are ready to allocate your assets to the best instruments.
  • Your investment will automatically spread the risk.

The price movements of this investment tool are based on the price movements of the constituent bonds. So when the price of these components goes down The price of one tool will also drop. and vice versa

Another drawback is that it takes you 2 to 7 business days to complete disbursement for this tool. This period is clearer than money market mutual funds which only take 2 business days. Therefore, bond funds are not suitable for short-term debt instruments.

5. Mixed Mutual Fund

Other mutual fund investment products suitable for the medium term include: Mixed Fund. In contrast to bond mutual funds The composition of mixed mutual funds tends to be more flexible. This is because 1-79% of mutual fund allocations can be used for stocks, bonds or money markets, while the remaining 21% can be used for other instruments.

The advantages of RDCs are:

  • You are still eligible for bond coupons, stock dividends and capital gains.
  • Some items can be purchased for as little as IDR 10,000.
  • You don’t have to manage your own assets. There are investment management companies that are ready to allocate your assets to the best instruments.
  • Your investment will automatically spread the risk.

The downside is that you have to check each RDC’s fund information sheet to see the investment elements put into this tool. Because each investment instrument has different effects, benefits and risks.


The benefits of investing in stocks are maximized if done over the long term. However, this does not mean that this proof of equity investment cannot be used for medium-term investments of 1-5 years.

Let’s look at some examples of JCI developments over the past 5 years. Although JCI values ​​have declined during COVID-19, in the past 5 years, JCI values ​​have generally increased by about 19%. You own Rs.1,000,000 worth of stocks, so you make a profit of Rs.190,000. Isn’t that good?

However, in contrast to government bonds and gold Stocks are instruments whose prices tend to rise when a country’s economy is expanding or improving. It is therefore not surprising that during the past Covid-19, the Indonesian stock market has fallen by 30%. It also indicates that stocks are among the high-risk instruments.


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