The Indonesian Minister of Finance Sri Mulyani said that the millennial generation had difficulty buying a house because the price was relatively expensive. However, Smart Investors can certainly make their dream of owning their own home come true by utilizing the Home Ownership Credit (KPR) facility as long as they have sufficient down payment.

Collecting a down payment (DP) on a house for a mortgage is a challenge in itself for those of you who are new to income. However, this can still be achieved by managing finances which include investing in mutual funds..

For example, the price of a new house in the Jabodetabek area is around IDR 1 billion. Then the current income, for example, is around IDR 15 million, and the allocation for saving or investing is around a third of salary or around IDR 5 million.

Then, you can start setting aside IDR 5 million per month to prepare a down payment on a house for the next 5 (five) years. For example, the desired down payment target is IDR 300 million or 30% of the house price, so that you can apply for a mortgage at the bank.

So, the 30% down payment target of around IDR 300 million can be achieved by saving in mutual funds..

Of the various types of mutual funds, fixed income mutual funds can be chosen for medium-term investments of around 2-5 years. Fixed income mutual funds which contain debt securities or bonds are also suitable for investors with a moderate risk profile.

One of the best fixed income mutual funds available on the Bareksa super app is the STAR Stable Income FundThis mutual fund managed by STAR Asset Management recorded a return ofreturn7.22% in the last year (as of October 4 2023).

To understand how to collect a down payment on a house with mutual funds, let's use a simulation based on historical data.

For example, you started an initial investment of IDR 5 million 5 years ago in the STAR Stable Income FundThen, regularly, you increase your investmenttop up) in mutual funds by IDR 5 million per month. So the total investment capital for 5 years is IDR 305 million.

Because there has been growth in the value of mutual fund income over 5 (five) years, the total return on mutual fund investment is IDR 389.9 million. This means that there is growth of IDR 84.9 million, or around 27.85% of investment capital, as can be seen in the following graph.

Mutual Fund Investment Simulation Chart

Source: Bareksa.com

With investment returns worth IDR 389.9 million, you can certainly pay a down payment on a house. In fact, there is still extra money that can be used for expenses and buying home furniture.

Furthermore, those of you who are used to saving IDR 5 million per month in mutual funds can now continue this habit to pay monthly KPR installments. A house worth IDR 1 billion is no longer a dream any more.

About STAR Stable Income Fund

​STAR Stable Income Fund is a fixed income mutual fund whose portfolio is predominantly corporate bonds. This product is suitable for beginner investors and those willing to try a stable product for the medium term.

This fixed income mutual fund managed by investment manager PT Surya Timur Alam Raya Asset Management (STAR ​​AM) aims to strive for a stable and sustainable growth rate with a measurable level of risk to protect the capital of Participation Unit Holders.

In terms of performance, this mutual fund shows interesting growth. Over the past year (as of October 4, 2023), STAR Stable Income Fund recorded a return 7,22%.

So, what supports the performance of this mutual fund? Based on the mutual fund fact sheet fund fact sheet as of August 2023, the following is a list of the 10 largest assetstop holdings) STAR Stable Income Fund:

• PT Bank Sahabat Sampoerna Deposits

• Sustainable Bonds I SINAR MAS MULTIARTHA THP II TH 2020 SERIES B

• Sustainable Bonds II SINAR MAS MULTIFINANCE THP I TH 2020 SERIES B

• Chandra Asri Petrochemical Continuous Bond IV Phase I Year 2022 Series A

• Indomobil Finance Continuous Bonds IV Phase III 2022 Series B

• BFI Finance Continuous Bond V Phase V 2023 Series B

• Sustainable Bonds VI Astra Sedaya Finance Phase I 2023 Series B

• Hino Finance Indonesia Bond II Year 2023 Series B

• OKI PULP & PAPER MILLS II TH 2022 SERIES B Bonds

• Mudharabah Sukuk Lontar Papyrus Pulp & Paper Industry I Year 2018 Series B

This fixed income mutual fund has received quite a lot of investor trust, as can be seen from the growth in its managed fundsasset under management(Assets Under Management/AUM) in the last month. As of August 2023, the AUM of this mutual fund reached IDR 3.2 trillion, an increase of around 10% compared to the figure at the end of July 2023 of IDR 2.9 trillion.