Mirae Asset Sekuritas: Rupiah and Foreign Flows Strengthen, Which Mutual Funds Are Attractive?

The strengthening of domestic financial markets is creating room for investors to reassess their portfolios. However, despite improvements across several market indicators, investors should remain selective when choosing investment instruments rather than simply chasing market momentum.

Research Analyst at PT Mirae Asset Sekuritas Indonesia, Novani Karina Saputri, said portfolio strategies at present would be better directed toward balanced selective risk-taking rather than aggressive risk-on. She noted that the risk-reward profile of domestic assets has improved amid a stronger rupiah and foreign fund inflows, although inflation and global interest-rate conditions remain sources of pressure.

In the foreign exchange market, the rupiah strengthened from around Rp17,722 per US dollar at the end of August to Rp17,642 per US dollar as of September 4, 2026. According to Novani, the stronger rupiah and increasing foreign flows indicate resilience in domestic assets, although global pressures remain a factor to watch. In the fixed-income market, the 10-year SBN yield stood at around 7.11%, making entry yields more attractive for investors, although strategies should still be implemented gradually given interest-rate volatility.

“Bond mutual funds have become slightly more attractive after the 10-year SBN yield rose to 7.11%, but we continue to prefer portfolios focused on short-to-medium duration bonds, with extensions into longer tenors carried out gradually as duration volatility remains high,” said Novani.

Meanwhile, in equity mutual funds, improving foreign flows and the strengthening IHSG provide room to maintain exposure to fundamentally strong stocks, particularly large-cap and liquid names. However, investors should remain mindful of potentially higher volatility and dispersion.

Novani also sees money market mutual funds continuing to play an important role as a liquidity anchor in portfolios. Nevertheless, the forward return of money market mutual funds may normalize if liquidity costs decline going forward, although they remain more attractive than simply keeping funds in bank deposits.

Against this backdrop, Novani said a more balanced approach remains important for investors. For moderate-risk investors, an indicative allocation could consist of 35% money market mutual funds, 40% fixed-income mutual funds, and 25% equity mutual funds. This allocation is indicative and should be adjusted according to each investor’s risk profile, liquidity needs, and investment horizon.

According to Head of Fund Services at PT Mirae Asset Sekuritas Indonesia, Francisca Gerungan, investors should also consider the role of each type of mutual fund within their portfolio before making investment decisions, taking into account their respective risk profiles, investment objectives, and investment horizons.

Investors with liquidity needs and short-term funding requirements may consider money market mutual funds. Meanwhile, higher bond yields are beginning to create opportunities in fixed-income mutual funds. For investors with longer investment horizons and higher risk tolerance, equity mutual funds can form part of a growth allocation, with exposure added gradually.

“Investors should not only ask which product offers the highest return and then use its one-year performance as the sole reference, but also consider what role the product serves within their portfolio. This can help make investment decisions more aligned with their needs rather than being driven solely by short-term market conditions,” said Francisca.

For moderate-risk investors, combining several types of mutual funds can allow each instrument to serve a different role within the portfolio, from maintaining liquidity and managing volatility to providing long-term growth potential.

Ultimately, improving market conditions can provide an opportunity for investors to reassess their portfolios. However, any adjustments should remain selective and take into account individual risk profiles, liquidity needs, and investment objectives, rather than simply following market movements.