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Money Market Mutual Fund Index Records Positive Performance, Look at the Prospects until the End of the Year
Selasa, 12 September 2023
Bisnis.com, JAKARTA — The money market mutual fund index recorded positive performance throughout the current year with an increase of 2.74 percent year-to-date (ytd). As a result, the prospects for money market mutual funds are predicted to remain bright until the end of the year.
Based on Infovesta data quoted Monday, (11/9/2023), the money market mutual fund index recorded a positive return of 2.74 percent ytd, while the stock mutual fund index corrected -1.13 percent in the same period. Meanwhile, the fixed income mutual fund index is still leading with an increase of 3.66 percent ytd.
However, referring to data from PT Kustodian Sentral Efek Indonesia (KSEI), managed funds or Assets Under Management (AUM) of money market mutual funds in the industry as of August 2023 reached IDR 76.53 trillion, or down 1.50 percent month-over-month. (MoM) compared to July 2023 of IDR 77.70 trillion.
On the other hand, the number of money market mutual fund investors is still the highest at 2.7 million investors. Followed by fixed income mutual funds with 983,495 investors, and stock mutual funds with 713,545 investors.
BNI Asset Management Investment Director Putut Endro Andanawarih said that the decline in funds managed by money market mutual funds was likely caused by investors' interest in seeking a higher level of return compared to the returns on money market mutual funds. "So, this makes investors withdraw their funds from money market mutual funds," said Putut to Bisnis, Monday, (11/9/2023).
According to him, another reason funds managed by money market mutual funds have decreased is because there are other investment options for investors such as retail bonds issued by the government which have deposit-like features with monthly profit sharing.
Regarding the number of investors in money market mutual funds which is still high, Putut said investors continue to invest their funds in money market mutual funds as an option to optimize cash funds, rather than just getting interest on demand deposits.
"Or there is the possibility of additional new investors starting to try placing their funds in money market mutual funds to start investing with lower risk," he said.
According to him, the performance prospects for money market mutual funds tend to be sensitive to expectations of interest rate movements which will be reflected in the level of returns on money market mutual funds.
On the other hand, Director of Panin Asset Management Rudiyanto assesses that the performance prospects for money market mutual funds will still be quite good in 2023 because bank liquidity is getting tighter, and the government is aggressively issuing retail government bonds (ORI).
"ORI offers became very frequent towards the end of the year so that banks slowly raised their deposit interest rates. This had a positive impact on the rate obtained by the money market which also became higher," said Rudiyanto to Bisnis.
As is known, Bank Indonesia (BI) continues to maintain the interest rate (BI7DRR) at the level of 5.75 percent. Meanwhile, the US Central Bank Federal Reserve or The Fed is predicted to increase interest rates to 5.75 percent at the September 2023 Federal Open Market Committee (FOMC) meeting.
