BI Reference Interest Rate Increases, Here Are Tips for Mutual Fund Investors My Money – 6 hours ago

Jakarta, CNBC Indonesia – An increase in the reference interest rate could certainly have an impact on mutual fund instruments that have basic assets such as government securities (SBN) and shares.

From the Government Securities (SBN) market, investors are still releasing government bonds, so the price has fallen and yields continue to fly. SBN prices have reversed with yields. The 10 year tenor SBN yield closed yesterday at 7.03% from 6.83% in trading. previously.

So how can we mitigate risk and optimize mutual fund investment returns amidst rising benchmark interest rates? Here are tips that you can do.

Measure stock mutual funds against a benchmark index

Benchmarking is something that can be done to assess the performance of mutual funds in the long term.

When the performance of the mutual fund is seen to often outperform the reference index, it can be said that the mutual fund is quite worth buying.

The reference indices that can be used as comparisons are the Composite Stock Price Index (IHSG), State Bond Index, and deposit interest.

Or, you can also make a comparison between one mutual fund and another mutual fund for a certain period of time.

Switching mutual funds or top up

To maximize returns on your mutual fund investments, diversifying mutual fund products is of course the key. However, one thing you should not forget is to make the switch by ensuring market conditions.

When a correction occurs in the SBN market, it is very likely that the value of the fixed income mutual funds you own will decrease. Switching to money market mutual funds can certainly be done.

But apart from that, you can also top up mutual funds if you view this decline as an opportunity to buy at cheap prices.

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