This is the Investment Manager's Strategy to Create Big Cap Mutual Fund Products in 2022

A number of investment management companies (MI) believe that the performance of stock mutual funds with underlying assets of shares with jumbo market capitalization will remain positive this year. A number of strategies have been prepared to increase the return rate for existing products. Star AM Chief Investment Officer Susanto Chandra said that the performance prospects for stock mutual funds with large cap underlying this year tend to be better.

Apart from the prospects for economic recovery, the potential for better foreign fund flows or capital inflows into the Indonesian market compared to last year will also support the performance of stock mutual funds. "The prospects for mutual funds with big cap underlying assets will be better if foreign investors continue to invest in the Indonesian stock market," he said.

In order to take advantage of this momentum, Star AM will increase the portion of big cap stocks in its products. He said, Star AM determined the share of big cap shares to be 80 percent - 90 percent of its product portfolio. Susanto explained that the securities his company chose were securities that had high market capitalization, adequate liquidity, and securities valuations that tended to be optimal when compared with historical valuations.