Political Year, Diversification Is The Key To Reduce Risk When Investing

Investment illustration (Photo: dock. Antara)

JAKARTA - PT Manulife Aset Manajemen Indonesia (MAMI) stated that diversification can be the right strategy to reduce risks when investing in the political year.

According to the Chief Economist & Investment Strategic of PT MAMI Katarina Setiawan, investors need to vary the type of investment instrument, such as investing in stocks and bonds.

"We see that diversification is the most appropriate strategy. So it is diversified between ownership in stocks and bonds, adjusting it to the risk profile of each investor," Katarina quoted Antara as saying.

According to Katarina, elections still provide uncertainty, such as who the candidates will be elected, what is the agenda, and the policies that are enforced.

"So this has caused several investors, some of these companies have generally postponed investment," said Katarina.

Katarina said, with more stable interest rates and volatility in government bond returns as well as US Treasury bond yields, the investment in the bond market is becoming very attractive at this time.

"So the bond market will be very profitable, but we also have to diversify and especially for investors with more aggressive and longer-term risk profiles," said Katarina.

He added that investors often pay special attention to election security factors when considering investment in the capital market.

The continuity of elections in Indonesia is also said to always be accompanied by a safe atmosphere that creates investor confidence, as can be seen from the upward trend in the capital market every time an election is held.

"So this may be supported by increased economic activity. So there is an increasing turnover of money, then there is consumption supported by campaign funds," said Katarina.