The domestic capital market is currently experiencing turbulence which is attacking from various directions. The increase in the Fed's benchmark interest rate and the war in Ukraine are a ballast, but rising commodity prices and foreign investors who are busy investing their money in the domestic stock exchange can be a driving force.

From the beginning of the year to the end of February, the JCI was recorded as still able to grow 4.66%, even though the end of February was marked by the beginning of Russia's invasion of Ukraine. In fact, on an annual basis (year-over-year) IHSG growth until the end of February reached double digits.

It turns out that the growth of the JCI does not necessarily increase the performance of other assets which are directly tied to stock performance. At the same time, mutual funds began to be 'abandoned' and failed to record growth in terms of net asset value (NAV).

Throughout February 2022, the NAB of the mutual fund industry was recorded to have shrunk. Based on data compiled by the Financial Services Authority (OJK), the total NAB last month was recorded at IDR 570.83 trillion.

When compared to the position at the end of January of IDR 574.63 trillion, net asset funds decreased by IDR 3.80 trillion. Or on a monthly basis (month-to-month) NAB decreased by 0.66%.

When compared with the position at the end of 2021 where the NAV was recorded at IDR 579.96 trillion, the NAB of mutual funds throughout the year until the end of February shrank 1.57%, while at the same time the JCI grew 4.66%.

Furthermore, at the end of February 2021 the NAV of mutual funds was recorded at IDR 570.80 trillion. This means that on an annual basis, last month's NAV was relatively stagnant, this happened amidst the JCI shooting up 10.37%. On the other hand, participation units actually increased, from initially being around IDR 1,315 per unit in February 2021, last month it increased to IDR 1,362 per unit, or an increase of 3.57%.

Not only JCI, other main stock exchange indices such as LQ45 and IDX30 have also experienced growth since the beginning of this year.

Generally, the majority of stock mutual funds follow an index whose NAV should be able to grow. However, this also cannot be separated from the decision of investment managers who may compile portfolios without referring to the three main domestic stock exchange indices.

It could be that the large collection of second liner shares or poorly performing sectors in the investment manager's portfolio also drags the Net Asset Value (NAV) down and causes managed funds to decline.

At the end of last year, business players projected that the mutual fund industry in 2022 would still have the opportunity to grow amidst the increasingly varied investment instruments of choice.

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.