JAKARTA - PT Mirae Asset Sekuritas Indonesia assesses that index mutual fund instruments that focus on the banking sector can be one of the options for investors to invest, one of which is the STAR Infobank 15 Index Mutual Fund, given the stable and promising performance of the banking sector.
Mirae Asset's Head of Wealth Management, M. Arief Maulana, said that the STAR Infobank 15 Index Mutual Fund is one of the products that only invests in shares in the banking sector.
"With the prediction of stable banking sector performance like today, we recommend mutual funds that focus on banking stocks, one of which focuses on the STAR Infobank 15 Index Mutual Fund, which will not leave the bank shares because it refers to the bank index," said Arief at the Media Day: April by Mirae Asset Sekuritas event Tuesday, April 23.
Meanwhile, based on data from the Financial Services Authority (OJK), the fund management fund reached IDR 501 trillion at the end of 2023, consisting of 1,809 mutual fund products managed by 94 investment managers.
STAR AM CEO Hanif Mantiq said the banking sector remains the prima donna in the capital market, with a large market cap and continued performance showing a positive trend. This sector plays an important role in encouraging the movement of the Composite Stock Price Index (JCI).
"We are optimistic that the STAR Infobank 15 Index Mutual Fund will be able to make customers have a stable risk and return, especially seeing the phenomenon of the stock exchange that is currently volatile," he explained.
Hanif said that the index mutual fund has four main advantages, such as the amount of dividends that investors can enjoy and effective risk management in line with the increase in yields.
According to Hanif, the first advantage is to focus on banking, especially because Indonesia is expected to increase to become the fourth largest economy in the world in 2050, which will be supported by banks.
Furthermore, the second, namely historical performance which was impressive because the increase in STAR Infobank15 scored an average increase per year reaching 11.5 percent per year in the last 10 years, outperforming other stock indexes such as LQ45, JCI, and Sri-Kehati 2.3 percent-5.8 percent.
Then the third, namely attractive dividends with a significant trend of increasing yield dividends over the past 5 years, with an estimate of reaching 4.07 percent in 2024 and with an average dividend payment ratio (dividend payout ratio) of 45.8 percent.
Hanif said the fourth came from, effective risk management with a yield increase of 25.8 percent in the last 3 years, surpassing the average other stock index of about 6 percent.
According to Hanif, although the growth is significant, the Infobank15 Index still maintains a controlled risk of volatility with a beta value of 1.18, almost with an average other index located at 1.14. Beta above 1 means more volatile than reference.
"We believe this product will not only offer quality investment opportunities but will also expand our reach to attract more investors, especially for investors who are interested in investment in the Indonesian banking sector", he said.
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