Jakarta, CNBC Indonesia – It is believed that the mutual fund industry in 2022 still has the opportunity to grow amidst the increasingly varied investment instruments that are now popular with young people, such as crypto assets, for example. President Director of PT Surya Timur Alam Raya Asset Management (PT STAR AM), Reita Farianti, assesses that the mutual fund industry is still promising in terms of yield growth.

It is noted that the realization of growth in the mutual fund industry as of the end of November 2021 can be considered quite good with growth of 1.16% compared to October 2021, but it is still corrected by 2.45% compared to January 2021. The former President Director of BNI Asset Management assesses that, after the global economy was hampered by the COVID-19 pandemic, in 2022 he estimates that he will show significant growth.

This is because at the end of 2021, Indonesia and most countries in the world are preparing to reopen economic activities with the hope that recovery can begin to occur in 2022. "We believe this will also have an impact on the growth of the mutual fund industry," said Reita, to CNBC Indonesia, Wednesday (29/12/2021).

Even though it is growing, there are several factors that will influence the capital market and also the growth of mutual funds in 2022. First, the United States central bank, the Fed, estimates that the 2022 inflation rate will be 2.6%, an increase compared to the 2021 level of 2.2%, before then decreasing in 2023 to 2.3% and 2024 to 2.1%. Meanwhile, Bank Indonesia estimates that the 2022 inflation rate will be 3% plus minus 1% or in the range of 2 – 4%. "What will be a problem if inflation rises above expectations. "This can have a negative effect on all risky asset classes such as shares and fixed income and thus can reduce the growth potential of mutual funds in Indonesia," he explained.

However, if inflation is relatively controlled and supported by Indonesia's economic growth, the government predicts it could grow by 5 - 5.5% in 2022. STAR AM also believes that the mutual fund industry in Indonesia can grow better than in 2020 and 2021 which were still in a pandemic condition. Amid optimism that economic growth in Indonesia and globally next year will experience a significant recovery in line with the improvement in the number of Covid-19 cases.

Therefore, STAR AM recommends stock mutual fund products to capture economic growth which we predict will increase quite drastically. "We also recommend fixed income mutual fund products to anticipate and mitigate possible risks," he said. Reita also revealed that the company will currently still focus on developing protected mutual fund products in 2022.

Apart from that, STAR AM will also develop mutual funds with shares in the new economy sector through mixed mutual funds, which will also be able to capture risk mitigation through investing in fixed income securities. "We hope it can become an alternative investment for investors," he explained.

The following is the total AUM of KPD and mutual funds as of November 30 2021:

Source: https://www.cnbcindonesia.com/

About Star AM

PT Surya Timur Alam Raya Asset Management (PT STAR AM) is a subsidiary of PT Aldiracita Sekuritas Indonesia, a brokerage institution which was founded on May 5 2004 and obtained a Securities Company operational license as an Investment Manager from the Financial Services Authority (OJK) – Services Authority Letter Finance d/h BAPEPAM LK No. KP-09 / PM / MI / 2004. As of 31 August 2021, the total AUM including KPD and Mutual Funds from Star AM was IDR. 6 Trillion. STAR Asset Management provides professional, reliable and trustworthy investment management services in the Indonesian capital market.