Indonesia´s Economy is Projected to Grow in 2023, Direct Fixed Income Mutual Funds Become a Mainstay

JAKARTA - The IMF (International Monetary Fund) predicts that a third of the world will experience a recession in 2023, this said IMF Managing Director Kristalina Georgieva last Monday, "We predict that a third of the world economy will be in a recession," he stressed in an interview with CBS media. He refers to all countries that are the main engines of growth. According to him, the United States (US), Europe and China will experience weaker activity. "2023 will be more difficult than last year as the US, EU and China economies will slow down", he added.

In contrast to global economic conditions, Bank Indonesia projects Indonesia´s economic growth in 2023 to be 4.5% -5.3%. Economic growth with a range of above 5% is far higher than developed countries like America which is projected to only grow 1% in 2023. This could be one of the reasons foreign investors may consider Indonesia as an investment destination.

Likewise with the increase in interest rates by central banks in several countries, it is predicted that it will not be as aggressive in 2022. This will have a very positive impact on investment instruments in domestic securities, one of which is fixed income mutual fund investment instruments.

Fixed income mutual fund is a type of mutual fund whose contents are 80% of bonds with maturities of more than 1 year. Lately, fixed income mutual funds have been recorded to have improved performance every day. For example, MNC Dana Likuid and MNC Dana Syariah, which are fixed income mutual fund products from MNC Asset Management, these two products have very attractive performance and have managed to occupy ranks 1 and 2 respectively (based on NAV as of January 6, 2023) in several online investment applications such as IPOT, Navi, Ajaib, Poems, Barkesa, and Motion Trade.

Muhamad Sugiarto as Fixed Income Manager of MNC Asset Management said, "We are very satisfied with the increasing performance of our products, namely MNC Dana Likuid and MNC Dana Syariah, after these few days they managed to rank 1st and 2nd in several APERD. This can happen because the securities portfolio is selective and still considers risk management (Min rating single A from PEFINDO). In addition, we also prefer corporate bonds, which make the volatility more stable," Sugiarto concluded.

Dimas Aditya Ariadi as Chief Marketing Officer of MNC Asset Management added, "We can recommend to the public to invest in semester 1 of 2023, namely in bonds (fixed income mutual funds), and in semester 2 you can consider investing in stock-based securities ( Equity mutual funds), while the recommendations for fixed income mutual funds are our products, namely MNC Liquid Funds and MNC Syariah Funds whose performance is increasing and risk mitigation is maintained, for this reason people can buy MNC Liquid Funds & MNC Syariah Funds at MotionFunds.id, APERD , and our direct sales in Jakarta, Surabaya, Bandung and Pekanbaru," said Dimas.

For information, the MNC Dana Likuid mutual fund has a performance with an indication of a return of 8.09% p.a (net) and MNC Dana Syariah with an indication of a yield of 7.79% p.a (net) based on NAV as of January 6, 2023 which can be purchased through the MotionFunds website and can be accessed at the address www.motionfunds.id