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BNI Asset Management: This is a Mutual Fund Product Targeted by Institutional and Retail Investors
Rabu, 13 November 2019
Bisnis.com, JAKARTA - Institutional investors are projected to still be interested in fixed income and money market mutual fund products amidst the risk of market uncertainty that is at risk of continuing into 2020.
President Director of BNI Asset Management Reita Farianti said institutional investors have a tighter investment profile, so they choose safer instruments. The options chosen include money market and fixed income mutual funds.
He said money market mutual funds were chosen as a bumper amid uncertain conditions. On the other hand, income mutual funds remain an option due to the rising price of government bonds (SUN) due to the trend of low-interest rates.
He believes that this trend will last until next year with the assumption that Bank Indonesia will continue to cut its benchmark interest rate, although it will not be as much as this year.
“The money market will still be an option because institutions will need a treasury, banks will still need it. Fixed income will still be 'quite fragrant' in 2020. It seems that we are still experiencing a reduction in interest rates again, bond prices will rise," he said while attending the award ceremony for the Bibit platform at the Standard Chartered Tower, Jakarta, Wednesday (11/13/2019).
Meanwhile, he assessed that retail investors tend to be unaffected by global sentiment. This is reflected in the choice of a more daring instrument, namely, although the performance of the stock market is lower than the performance of the bond market, retail investors' interest in equity mutual fund instruments is still high.
Meanwhile, its equity mutual fund products that use the shares of issuers on the IDX30 index are the best-selling products this year.
He thinks that it is motivated by a lower precautionary principle so that retail investors have more courage to invest their capital.
Moreover, he said that the majority of new retail investors who entered through financial technology partners were classified as more aggressive as a result of the demographic profile of investors under 35 years of age.
"In retail, our IDX30 equity mutual funds are the ones that sell the best because they don't care about dynamics," he said.
Despite having different preferences, he admits that the biggest contributor to managed funds still comes from institutional investors. From the data collected as of October 31, Rp19.98 trillion of managed funds came from institutional investors and the remaining Rp3.06 trillion came from retail investors.
"In terms of numbers, retail investors are dominant, but in terms of volume, institutional investors are more dominant," he said.
