Wait And See Investors, Money Market Funds Mutual Can Be A Solution

Credit Mutual Fund Illustration: pexels.com/pixabay

JAKARTA - PT Mirae Asset Sekuritas Indonesia advises investors who are still hesitant to park their unemployed funds on money market mutual funds instruments, especially those with facilities for early disbursement (sameday reemption), of course with terms and conditions.

Mirae Asset's Head of Wealth Management, M. Arief Maulana, said that the advice to invest in special mutual funds is especially when investors wait for a more stable capital market condition, or commonly called wait & see.

"When market participants tend to wait & see, idle funds can be used by investing in short-term instruments such as mutual money market funds. What's more, products with high liquidity because they have sameday redemption facilities," said Arief in his statement, quoted on Sunday, April 20

Arief said the product allows investors to immediately disburse funds when the execution of the share purchase has been carried out because the momentum is deemed appropriate without worrying about the failure of the stock settlement.

According to him, mutual money market funds are mutual funds invested in debt instruments that are due less than a year and the effects of other money markets such as deposits and savings so that they can be disbursed faster than mutual funds of other types.

Arief added that the mutual funds for the money market have provisions for the disbursement of funds (redemption) for a maximum of 7 days. Generally, the mutual re-emption of H+1 money market funds.

Head of Investment Capital Asset Management Wisnu Karto said that in addition to high liquidity, another Capital Optimal Cash advantage is the ease of access to investment through NAVI, professional management, and optimal returns.

"Over the past year, the yield or Optimal Capital Cash has reached 4.36 percent, above benchmark banking deposits of 3.25 percent," he said.

According to Wisnu at this time, Indonesia's capital market experienced significant pressure during the first quarter of 2025. The Composite Stock Price Index (JCI) closed at the level of 6,510 on March 27, 2025, just before the Eid holiday, weakening by about 8 percent compared to the end of 2024.

Head of Research & Chief Economist Mirae Asset Rully Arya Wisnubroto noted that during the first quarter, foreign outflows reached US$1.8 billion or equivalent to Rp30.3 trillion from the stock market.

Rully said the pressure continued in April, where foreign outflows increased significantly to US$927 million, equivalent to Rp15.5 trillion in stock markets and bond markets.

"This condition reflects market concerns about global and domestic economic challenges," he said.

Rully conveyed that the Bank Indonesia Rupiah Certificate (SRBI) instrument was also experiencing selling pressure from foreign investors.

Meanwhile, based on BI data for the period 8'10 April 2025, there was an outflow of Rp. 10.5 trillion in just three days of trading of the central bank instrument.

The growth prospects for Asian developing countries are estimated to stagnate until 2026, mainly due to the economic slowdown in China and the US which has been exacerbated by the increasing tension of trade wars. Meanwhile, at home, investors still doubt achieving the economic growth target of 8 percent," Rully explained.