Jakarta, CNBC Indonesia – Composite Stock Price Index (IHSG) in the last trade of 2023, with a strengthening throughout 2023 of 6.16%. However, unfortunately, the performance of stock mutual funds actually looks less attractive.
Based on data from Edvisor.id, the performance of the fixed income mutual fund index in trading Friday 29 December 2023 strengthened by 5.46%. followed by money market mutual funds at 4.14%, mixed mutual funds at 1.37%, and stocks at -2.93%.
It was also observed that the performance of the fixed income mutual fund index was still above several other stock indexes, namely the SRI Kehati Index.
Reflecting on the yield on government securities (SBN) with a tenor of 10 years throughout 2023, the yield was at 6.2% just when foreign capital flowed IDR 4.67 trillion in July 2023. The falling yield indicates an increase in SBN prices, which which makes the performance of fixed income mutual funds with underlying SBN also increase.
Meanwhile, in October 2023, there will be a spike in US Treasury yields 10 year tenor of 4.85% on Friday (27/10/2023). This surge certainly had an impact on the 10-year SBN yield, which at that time had reached 7.37%.
The US government's policy of issuing new debt amidst high yields also made investors turn to the US. And seeing that US Treasury yields are quite high, investors are flocking to buy US government bonds, leaving bonds in developing countries behind.
As time goes by, SBN yields continue to decline. However, the performance of fixed income mutual funds will still not be able to outperform the IHSG in 2023.
Is it time to buy stock mutual funds when they go down?
Stock mutual funds can actually be used for long-term investments, such as pension funds, high school education for children, and so on. However, be aware that performance that looks good now cannot be guaranteed to be the same in the future.
Apart from that, it is also important to know that the contents of a stock mutual fund portfolio are created to beat the reference index, be it IHSG, LQ45, SRI-Kehati or other indexes.
Even though the performance of stock mutual funds as reflected in the index has proven to be sluggish throughout 2023, not all stock mutual funds have poor performance.
You can still use this instrument for diversification to maximize profits in long-term investments.
[Gambas:Video CNBC]
Next Article
If a Mutual Fund Disbands, What's the Matter with Your Money?
(aak/aak)