Possessing numerous advantages for investors, Mirae Asset estimates the mutual fund investment instruments would achieve Rp1,000 trillion in the three years ahead.
Heaptalk, Jakarta — PT Mirae Asset Sekuritas Indonesia forecasted the mutual fund industry would continue to evolve significantly, predicted to attain US$65.9 billion, or approximately Rp1,000 trillion by the coming 2027.
According to the Financial Service Authority (OJK) data, the managed funds of the mutual fund industry achieved about US$ 33.2 billion (Rp504 trillion) in 2021. The funds come from 2,120 mutual fund products managed by 96 investment managers since Indonesia’s first mutual fund was issued in 1995. Perceiving the significant evolution of this investment instrument, boosted by the high literacy of the rising generation, OJK forecasts this managed fund would touch the targeted amount.
Head of Walth Management of Mirae Asset, Arief Maulana during the Media Day (02/09) elaborated on the two primary factors driving the surge of this sector, including the information technology innovation of the capital market practitioners, along with the spike in the financial technology growth in the country. Also, the digital savvy of society, specifically in the post-pandemic, sways the proliferation of the mutual fund industry.
On the other hand, Arief also observed the realtor also becomes the other driving factor of the sector enhancement, whereby Mirae Asset is one of the OJK‘s licensed mutual funds selling agents that markets the selected mutual funds from about 30 associate investment managers.
Perceiving the targeted value of this mutual funds industry, Mirae Asset believes that augmenting the Asset Under Administration (AUA) of its mutual funds would evolve more quickly from the industry enhancement that records the Compound Annual Growth Rate (CAGR) up to 10% for the last ten years. As it is known, Mirae Asset’s AUA has climbed from US$33 million (Rp500 billion) to US$66 million (Rp1 trillion), indicating an uplift of 100%.
Moreover, discerning the current turbulent economic situation, Arief also suggested the coming investors, including retail customers and corporations, utilize the asset allocation strategy in facing the uncertain financial market. Through this strategy, investors are accessible to divide their investments into multiple instruments to fetch a better-diversified risk, one of which is the money mutual funds.
Arief also explained investor can seize more benefits by adopting this strategy, including tax incentives, free buy and sell fees, diversified portfolio, liquidity, and low minimum investment value.
