Asset Under Management, commonly referred to as AUM, represents the funds managed by mutual fund investment managers. This figure provides insight into the extent to which individuals entrust their capital for investment purposes. According to data sourced from the Indonesia Central Securities Depository (KSEI), the number of investors in money market mutual funds has surged to an impressive 2.7 million individuals. This figure significantly surpasses the 980 thousand investors in income-based mutual funds and the comparatively meager 700 thousand in equity mutual funds.

KSEI's data also reveals a notable 1.50% reduction in the AUM for August 2023 when compared to the previous month of July 2023. Despite this decline, the money market mutual fund index maintains a positive year-to-date value of 2.74%, whereas equity mutual funds have witnessed a correction of -1.13%.

Chief Investment Officer at Sinarmas Asset Management, Genta Wira Anjalu, attributes the AUM decrease to various factors, including global central bank interest rates and the stance of Bank Indonesia. Market experts predict that The Fed will raise interest rates to 5.75% in September. Bank Indonesia, on the other hand, continues to maintain its benchmark interest rate at 5.75%.

Genta also highlights that the increase in bank deposit interest rates has prompted investors to redirect their funds from money market mutual funds to deposits, consequently resulting in a decline in AUM.

Genta maintains a positive outlook on the stability of money market mutual funds. This optimism is primarily grounded in the relatively lower risk associated with these funds compared to other mutual fund categories, particularly amid the backdrop of ongoing global economic challenges.

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