Jakarta, CNBC Indonesia – If most of the money market mutual funds with the best performance managed to record a performance of 4% year to date (YTD), then fixed income mutual funds could be in the 5-6% range. Some even managed to reach 9%.
Based on data from Edvisor.id, of the 10 fixed income mutual funds that managed to record the best performance YTD, there was one that managed to record a performance of 9.02%. All of these mutual funds also have quite large managed funds, namely more than IDR 10 billion and some reach trillions of Rupiah.
As is known, yields on Government Securities (SBN) for tenors of five, 10, 15 to 20 years will start to decline from 1 to 2 November 2023. Of course, this will have a very positive impact on fixed income mutual funds with SBN as the underlying asset.
Fixed income mutual funds are investment instruments that are very sensitive to increases in benchmark interest rates. An increase in interest rates is generally responded to by a decrease in SBN prices which ultimately results in an increase in SBN yields.
However, fixed income mutual funds can be a smart solution for investors who want to find investments with returns above money market mutual funds or deposits.
This instrument is also quite good for use in the medium or long term, even for investors with conservative and moderate risk profiles.
[Gambas:Video CNBC]
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