Equity funds to top mutual funds in Indonesia: analysts

Equity funds are expected to gain 12 to 15 percent in 2012, versus an 0.8-percent loss  last year.

This was the analysis of Edbert Suryajaya, an analyst at capital market research company PT Infovesta Utama.

In 2011, only 20 of 64 equity funds posted higher annual returns than the index gauge, with Makinta Mantap’s 23.93 percent gain topping the chart, followed by Millennium Equity’s 10.02 percent and Panin Dana Maksima’s 9.7 percent returns.

Equity funds are considered to be riskier than the other types of mutual funds.

The balanced mutual funds performed weaker last year, with average annual return of 0.94 percent. Gains ranged from the highest 19.98 percent managed by Sucorinvest Flexi Fund to Valbury Inklusi’s 24.39 percent loss.

Fixed income funds, which have the lowest investment risk, shined in 2011 with average annual returns of 11.11 percent, with BNP Paribas Prima II leading gains at 23.44 percent, followed by Panin Gebyar Indonesia II’s 19.28 percent and GMT Dana Obligasi Plus’ 19.1 percent returns.

“Investors have become more sophisticated and educated. Previously, when the market went down, investors redeemed their mutual funds. Now, they buy instead, seeking for gains in the next few years,” said Abiprayadi Riyanto, head of the Indonesian Association of Mutual Fund Managers.