Mutual funds are the choice for many Indonesian investors due to their lower risk compared to stocks, as well as their practicality. This lower risk and practicality provide safety for both beginner and experienced investors.

According to data from The Indonesia Central Securities Depository (KSEI), the number of mutual fund investors continues to increase. As of 31 December 2022, the number of mutual fund investors reached 9.6 million, rise 40.41% from 6.84 million at the same period in 2021. The mutual fund investors dominate the Indonesian capital market, which has a total of 10.31 million investors per 31 December 2022. As of February 2023, the number continued to increase to 9.9 million from around 10.6 million investors.

What is Mutual Fund?

Mutual fund is a forum to collect funds from the public, which are managed by the Investment Manager in a securities portfolio. The securities portfolio is a collection of capital market securities such as stocks, bonds and money market instruments such as deposits. The interesting part about investing in mutual fund is their practicality, because the fund will be well managed by Investment Managers, so investors don’t need to have periodic stock price monitoring on their own.

Mutual funds are suitable for new/beginner to medium and large investors who don't have a lot of time and expertise to calculate their investment risk.

What is the benefit of investing in Mutual Fund?

The benefit of investing in mutual funds is that the funds are automatically diversified, making it safer and reducing risk. The Investment Manager’s assistance in managing securities portfolios will also optimize returns because determining portfolios such as stocks and others is not easy, but requires knowledge, expertise and experience. Support from the Investment Manager makes investing in mutual funds is more practical and easier, and also brings optimal investment returns.

What is the risk of investing in Mutual Fund?

Mutual fund contains several risks, including: the risk of decreasing the value of the participation unit, liquidity, and default. The risk of decreasing value of participation units is due to the effect of falling securities prices (stocks, bonds, other securities). While liquidity risk relates to the difficulties faced by the Investment Manager if most of the unit holder resell the units they hold and it takes longer to disburse the mutual funds and Investment Manager has difficulty in providing cash for the redemption. Lastly, the default risk is the worst risk that arises when an insurance company that insures mutual fund assets does not immediately pay compensation or even pay less than the sum insured when unwanted things occur, such as defaults from parties related to mutual funds, brokers, custodian banks, payment agents, or natural disasters, which can cause a decrease in the NAV (Net Asset Value) of mutual funds.

Getting to know the mutual funds investment portfolios

There are 4 (four) types of mutual fund portfolios:

1. Money Market Mutual Funds which only invest in debt securities with maturities of less than 1 (one) year. The goal is to maintain liquidity and capital maintenance.
2. Fixed Income Funds investing at least 80% of its assets in the form of debt securities. This mutual fund has a relatively higher risk than money market mutual funds. The goal is to generate a stable rate of return.
3. Equity Funds invest at least 80% of their assets in the form of equity securities. Because the investment is made in stocks, the risk is higher compared to the previous two types of mutual funds, but the yields are also high.
4. Hybrid Funds: this type of mutual fund invests in equity, debt securities and money market instruments.

Let’s have a look at the mutual funds products that Mandiri Sekuritas has to offer! *

Click on the following link: bit.ly/MOSTMutualFund to find out more about mutual fund products available at MOST from Mandiri Sekuritas:

1. Bahana Liquid Syariah Mutual Fund Class G (Sharia Money Market Mutual Fund), Bahana Liquid Fund (Money Market Mutual Fund), Bahana Mes Syariah Fund Syariah Class G (Sharia Fixed Income Mutual Fund), Kehati Lestari Mutual Fund Class G (Mutual Fixed Income Fund), ABF IBI Fund (Fixed Income Index Mutual Fund) managed by PT Bahana TCW Investment Management (Bahana TCW).
2. KISI Money Market Fund mutual funds, KISI Fixed Income Fund mutual funds, KISI Equity Fund mutual funds from KISI Asset Management (KISI AM), a subsidiary from Korea Investment Sekuritas Indonesia that was established in 2019.
3. Capital Sharia Money Market (Sharia Money Market Mutual Funds) from Capital Asset Management (Capital AM), a business group of PT Capital Financial Indonesia Tbk and PT Bank Capital Indonesia.

Let’s join and be part of a mutual fund investor now for a safer investment and optimal results in the future!

• *All Investment Managers who work with Mandiri Sekuritas have been registered and supervised by the Financial Services Authority (OJK).