Sharia Mutual Funds Suitable For Beginner Investors

Share illustration (Photo: Doc. Antara)

JAKARTA - Sharia Mutual Fund Products are suitable for novice investors who want to start investing by applying sharia principles in the Indonesian Capital Market.

Director of Marketing and Business of PT Danareksa Investment Management (DIM) Upik Susiyawati said that his party also has a Sharia Money Market Seruni Danareksa (SPU Syariah) product.

"The Danareksa SpU Syariah product was chosen because we believe the mutual product of sharia funds has good long-term prospects in Indonesia," said Upik quoting Antara.

In addition, he said the Syariah SPU mutual funds have a low and liquid investment risk, and are affordable at a minimum purchase price of IDR 10,000.

He explained that the Syariah SPU mutual fund is intended to provide a stable investment growth rate with minimal risk, while at the same time obtaining a high liquidity level to meet the needs of cash funds in a short time.

Through the Syariah SPU fund, he said investors invest in domestic sharia money market instruments that have a maturity of no more than one year and/or fixed income sharia effects whose dues are no more than a year in Indonesia and/or sharia deposits that do not conflict with sharia principles in the Capital Market.

Until March 2023, this Syariah SPU mutual fund owned by a subsidiary of PT Bank Rakyat Indonesia Tbk (BRI) recorded a six-month performance of 2.08 percent, or higher than the average mutual exchange of Islamic money market funds in the industry, which was 1.73 percent.

The Financial Services Authority (OJK) noted that sharia mutual funds increased by 5.02 percent year to date (ytd) to Rp42.65 trillion at the end of March 2023, from the previous Rp40.61 trillion at the end of 2022.

In addition, corporate sukuk recorded an increase of 1.25 percent ytd to Rp43.03 trillion at the end of March 2023, from the previous Rp43.03 trillion at the end of 2022, and state sukuk increased 2.24 percent ytd to Rp1,374.48 trillion at the end of March 2023, from the previous Rp1,344.35 trillion at the end of 2022.

Meanwhile, Indonesia's Islamic capital market capital capital capital capital capital cap was recorded at IDR 4,760.83 trillion as of March 31, 2023, although it decreased 0.53 percent ytd from the previous IDR 4,786.02 trillion at the end of 2022.

For information, Danareksa Investment Management is a subsidiary of BRI which is engaged in investment management, with the main activities including managing mutual funds, alternative investments, and fund management contracts.