Analysis of fixed income mutual funds performance in Indonesia (2000-2003)
To invest directly in the capital market can be required a large amount of investment capital. The risk is relatively high but the potential return can be high too because the stock price is very sensitive and volatile. If the investor willing to have the maximum return and the minimum risk, he/she has to monitor the market condition continually, increase his/her awareness concerning all influencing factors (Political, Economical, Social) and he/she have to be responsive in conducting every transaction. To conducting that requirement the investors have to have sufficient knowledge concerning the market and the investment.rnIn the early 1996 the mutual funds were introduced as an investment alternative, the public can invest their money with low initial investment, they don't have to manage their investment continually which means they can save more time, the risk also not as high as investing directly in the market, and they don't have to have a sufficient knowledge about the investment because their investments are managed by a professional investment manager.rnThe mutual funds pooled all the investors fund and then invest it into various types of investment instruments. Therefore, there are four types of mutual funds, Fixed income Mutual Funds, Money Market Funds, and Discretionary Mutual Funds. The investor can sell or buy the participation unit at anytime. rnFor the past 3 years after the economic crisis. The mutual funds have a superb growth. The public accept the mutual fund with enthusiasm, especially for the fixed income mutual funds. As the matter of facts, 80% from the total fund collected are comes from the fixed income mutual funds. This trends occurs because many investor search for more stability of income and the Net Asset Value of this type mutual funds is not as volatile as the other type of mutual funds. rnThere are several purposes which are should be achieved after conducting this thesis. rnTo know the performance of Indonesian fixed mutual funds performance from year 2000-2003.rnTo know the performance of Sertifikat Bank Indonesia (SBI) rate from year 2000-2003.rnTo find out the relationship between Indonesian fixed mutual funds performance and SBI rate performance.rnIn this thesis the author would like to emphasize on analyzing the performance of mutual fund in Indonesia from year 2000 until year 2003. the analysis of SBI performance, definition, characteristics will be explained briefly.
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