Anticipating The Decree Of Interest Rates, Investors Are Advised To Allocate To Bond Funds In 2024

JAKARTA - PT Mandiri Investment Management (Mandiri Investasi) recommends investors to provide greater allocations to bond mutual funds. This is in anticipation of the potential decline in inflation and benchmark interest rates at the global level in 2024.

In addition, investors can gradually add allocations to mutual stock funds in line with the potential shift in interest of global investors from the developed market stock market which experienced a rapid increase last year.

"However, of course, the investment portfolio must still be adjusted to the risk profile of each investor," said Mandiri Investment President Director Aliyahdin Saugi alias Adi quoting Antara.

Adi explained that global inflation, especially the United States (US), is expected to decline, thus encouraging a reduction in the Fed's benchmark interest rate which will have a positive impact on the bond market and the performance of companies, due to a decrease in cost of funds.

"Investiri Investasi melihat imbal hasil bond pemerintah 10 tahun dapat turun ke level 5,75 sampai 6,25 persen, dan IHSG berpotensi menentuh level 8.000 di akhir 2024," ujar Adi.

From within the country, he estimates that the national economy has the potential to grow positively this year, triggered by elections (elections), which encourage an increase in government spending and other related parties.

This subsidiary of PT Mandiri Sekuritas targets the managed fund to grow 10 percent year on year (yoy) in 2024, supported by open mutual funds from the class of stock assets, bonds and money markets as well as alternative investment products.

"In addition to the launch of new products, we will increase the managed funds of existing products by implementing the share class feature. With the share class, our mutual funds can meet the needs of dynamic investors competitively," said Adi.

"His party will increase customer penetration through the synergy of the Mandiri Group and increase marketing at the Mutual Fund Effect Seller Agent. To reach customers outside Indonesia, we will optimize the Mandiri Investment subsidiary in Singapore, namely the Mandiri Investment Management Singapore," said Adi.

At the end of 2023, the Bank Mandiri Group company recorded a total managed fund (AUM) worth IDR 43.34 trillion.

During 2023, Mandiri Investasi issued several new investment products, one of which was the ETF Index Mutual Fund product which invested in shares in the LQ45 index, namely Mandiri ETF LQ45.

In addition, the company received various awards in investment management, one of which was as Best Investor at the ESG Award from the SRI KEHATI Foundation which is proof of the company's commitment to sustainable investment.

"We are grateful that Mandiri Investasi can still grow and maintain its position in the top 10 Investment Managers in Indonesia," said Adi.