Trends Of Credit Growth Will Picu The Performance Of Money Market Fund Mutual Funds

Illustration. (Photo: Doc. Antara)

JAKARTA - Post-pandemic economic recovery is also driven by bank credit growth which has shot up to 11.4 percent throughout 2022. This growth rate is higher than the 5-year average at 6.3 percent.

This credit growth is also recorded to be higher than the deposit growth which is at 9.3 percent. In the future, banks have the potential to start a competition to raise third party funds (DPK) which will have an impact on increasing deposit interest rates.

Budi Hikmat, Head of the Economist of Bahana TCW Investment Management (Bahana TCW) projects that Bank Indonesia (BI) can maintain interest rates at the level of 5.75 until the end of 2023. Although BI's interest rate is predicted not to increase anymore, the upward trend in bank deposit rates is expected to continue.

A condition like this is the right time to rebalancing an investment portfolio by paying attention to instruments that have the potential to perform well.

"Seeing the increase in BI interest rate five times last year, one of the instruments that will get a positive impact is the Money Market Fund Mutual (RDPU). Where in nature the performance of the RDPU instrument will follow an increase in interest rates. Especially the RDPU instrument, the majority of which is in deposits, will have a positive impact this year after last year there has been a increase in the BI interest rate rate several times," Budi said, in his written statement, Monday, January 30. In the future, said Budi, in the midst of the trend of credit growth, banks will start competing to collect third party funds from the public. As a result, the increase in deposit interest rates is inevitable and deposit-based investment instruments will become more attractive this year.

Even throughout 2022, the increase in deposit rates was already greater than the increase in BI's benchmark interest rate. This trend is predicted to continue in 2023, as predicted by BI, bank credit growth in 2023 will reach 10-12 percent while deposit growth is only in the range of 7 - 9 percent.

"In the midst of the upward trend in the rate of deposit rates, we can use it to diversify investment into instruments that can provide good performance. By increasing the allocation to the Money Market Fund Reksa, for example, it will be a good investment option this year," concluded Budi.