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Raiz Invest enters Indonesian mutual fund market, targets millenials
Raiz Invest Indonesia has gathered 100,000 potential users since the mobile app’s launch in August
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According to OJK’s latest data, there are currently 1.39 million mutual fund investors in Indonesia (kontan.co.id/File)
PT RAIZ Invest Indonesia (Raiz) focuses on providing simple mutual fund products that serve as a gateway for millennials to invest.
Raiz, which was licensed as a mutual fund selling agent (APERD) by the Financial Services Authority (OJK) in December 2018, launched its mobile-based investment platform application in Indonesia in August.
“Our mission is to provide a convenient and efficient way of managing your mutual funds. We want to target a wide market segment by setting a very affordable minimum starting investment,” Raiz Invest Indonesia CEO Melinda Wiria said in Jakarta on Oct. 31.
Raiz Invest Indonesia claimed that it has gathered 100,000 potential users (people who’ve given their personal data) since the mobile app’s launch in August. Out of the total, around 10,000 individuals have downloaded the app and 1,200 have connected their bank accounts with mutual fund accounts in the app.
According to OJK’s latest data, there are currently 1.39 million mutual fund investors out of a population of around 269 million people in Indonesia. Furthermore, it is estimated that there are approximately 60 million people who are 20 to 34 years old, which Raiz considers to be the age group most compatible with investing digitally.
Melinda said her company intended to focus on attracting millennials as many young people were still unaware of the importance of investments.
“We are targeting to have 40,000 investors making transactions in our mobile app by the end of this year.”
Raiz Invest Indonesia commissioner Michael Luhukay explained that the mobile app’s transaction limit was set at Rp 10 million (US$713.5) daily to prevent money laundering on its platform.
“There are three features that our users can choose from in our app: lump-sum investments, recurring investments and round-up investments. You will need to connect your bank’s checking account with your mutual fund account,” Michael said.
Lump-sum investments are spontaneous, one-time investments in which Raiz users could directly invest their funds up to a certain amount at any given time. Meanwhile, recurring investments are installment-based investments. (bry)
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Editor’s note: An earlier version of this article incorrectly stated that the Raiz mobile app's transaction limit was Rp 2 million (US$142.70) per day. The correct daily transaction limit is Rp 10 million.
