This year’s mutual funds trend is for those with passive management, or passively managed funds such as index mutual funds and exchange-traded funds (ETF). The indication is that there is a significant increase of assets under management in passively managed funds rather than those that are actively managed. With a predictable return in the midst of a fluctuating stock market, these mutual funds are seen as more suitable in the political year.
The regional head elections (Pilkada), which will take place simultaneously in 171 regions this year, and preparations for the 2019 presidential and legislative elections, may trigger volatility in the stock market. This also opens an opportunity for investors who want to invest in stocks through mutual funds so they do not have to manage their own portfolios.