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This Mutual Fund Can Be an Option when The Fed Has the Opportunity to Hold Interest Rates
Jumat, 04 Agustus 2023
REPUBLIKA.CO.ID, JAKARTA -- The United States (US) central bank or the Federal Reserve (the Fed) is not expected to raise interest rates by 25 bps at the FOMC meeting next September. The Fed is expected to maintain interest rates at 5.25 percent-5.5 percent.
"With expectations that the Fed will hold interest rates in the coming months, we see that there are attractive investment opportunities in Fixed Income Mutual Funds and Equity Mutual Funds," said Investment Director of BNI Asset Management Putut Endro Andanawarih in a statement, Friday (4/4). 8/2023).
Putut added that the Indonesian bond market still looks attractive, one of which is shown from the movement in yields on Indonesian bonds with a tenor of 10 years which are still relatively attractive compared to those in Asia, even though they have decreased from 6.9 percent to 6.25 percent throughout 2023. In addition, capital inflows from foreign investors during 2023 it is still positive at IDR 94 trillion, far from the capital outflow that has occurred since 2020 of IDR 302 trillion.
This makes Indonesia still has the potential to get additional capital inflows with more attractive yields. In allocating investment assets, of course, investors need to take into account the risk profile.
If investors have a defensive-moderate risk profile, Fixed Income Mutual Funds such as the BNI-AM Teakwood Mutual Fund or the Ardhani Sharia Fixed Income BNI-AM Mutual Fund are still attractive as investment allocations.
However, for investors who have a more aggressive risk profile, Stock Index Mutual Funds such as the BNI AM Index IDX30 still have the potential to be an investment choice with a more attractive return target. The stock asset class is still considered very attractive, considering that the JCI tends to increase by 0.87 percent from the beginning of the year to early August 2023.
From a net foreign inflow perspective, it is estimated to increase, with the potential for future interest rate reductions, stable macroeconomic conditions and also the recovery of the domestic economy in Indonesia. Investors are advised to subscribe gradually or use the Dollar Cost Averaging method, while waiting for the Fed's next decision in September 2023.
