Mutual Funds Oki Purworiana MA0N0206. Mutual Funds  An investment alternative for investors  Small investors  Those who have less time & skill to count.

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Presentation transcript:

Mutual Funds Oki Purworiana MA0N0206

Mutual Funds  An investment alternative for investors  Small investors  Those who have less time & skill to count the risks of their investments  A tool to gather fund from public that have the capital, will to invest, but only have limited time & knowledge  Capital Market Law No.8/1995 section 1 clause (27) regarding Mutual Fund  Mutual Fund collects fund from the society.  The fund is invested in the securities portfolio.  The fund is managed by an Investment manager.

Benefits  Investor with a smaller budget can do investment diversification in their securities to minimize the risks  Helps the investor to invest in capital market easier  Time efficiency

Risks  Risk of decreased value of participating unit  influenced by the decrease price of securities  Liquidity risk  related to the difficulty faced by the fund manager if most of the unit holders resell their unit  Default risk  when the company that insures the MF’s wealth doesn’t pay the indemnity or pay lower than the loading value

Types of Mutual Funds  Money Market Funds  Invests on debt securities  The maturity date is <1year  The target is to keep the liquidity and maintain the capital.  Fixed Income Funds  Invests at least 80% of its assets in debt securities  The maturity date is 1-3 years  Has higher risk than money market funds  The purpose is to produce a stable return  Equity Funds  Invest at least 80% of its assets in equities  The maturity date is >3years  Has higher risks than the previous two types, but it gives higher rate of return.  Mixed Funds  invest in a combination of stocks and bonds, to capture the income generation strengths of both asset classes with less volatility  The maturity date can be 1 year or more

Commercial Banks NoNameNoName 1. BANK COMMONWEALTH, PT 12. BANK NEGARA INDONESIA (PERSERO), PT, TBK 2. BANK DANAMON INDONESIA, PT, TBK 13. BANK OCBC NISP, PT, TBK 3. BANK INTERNASIONAL INDONESIA, PT, TBK 14. BANK PEMBANGUNAN DAERAH JAWA BARAT DAN BANTEN, PT, TBKBANK PEMBANGUNAN DAERAH JAWA BARAT DAN BANTEN, PT, TBK 4. BANK MANDIRI (PERSERO), PT, TBK 15. BANK PERMATA, PT, TBK 5. BANK PAN INDONESIA, PT, TBK 16. BANK RAKYAT INDONESIA (PERSERO), PT, TBK 6. BANK SYARIAH MANDIRI, PT 17. BANK SINARMAS TBK, PT 7. BANK ANZ PANIN, PT, TBK 18. CITIBANK N. A. 8. BANK CIMB NIAGA, PT, TBK 19. PT. BANK UOB INDONESIA 9. BANK CENTRAL ASIA, PT, TBK 20. STANDARD CHARTERED BANK 10. BANK DBS INDONESIA, PT 21. THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITEDTHE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED 11. BANK MEGA, PT, TBK

Example

Facts  2011 : Increased 13% to trillion rupiah ($18.7 billion), 36% of that was in stocks  2012 : May grow as much as 20%