Felicia Iskandar - The Right Investment Product for Millenials

Thank you for the time and opportunity given (to me to talk). I’m here to represent Mr.
Angga who couldn’t come (to this event) this evening.
00:21
So continuing the topic (discussion) that had been explained by Mr. Angkar about investation
products,
00:28
So which infestation suits for millenial’s digital era and as we know that (which has been
explained as well) millennial generation is very efficient,
00:41
They always seek for an easy access and of course as Mr. Angkar had mentioned about Paper
Asset.
00:49
So what is paper asset?
00:51
One of examples of (paper asset) is infestation product in a context of Mutual Fund
(Reksadana)
00:56
So PT. Ashmore itself (as has been mentioned), we are a management infestation company,
01:04
So we launch products which are considered in Mutual Fund Category,
01:11
And maybe you have some questions in your mind (about Mutual Fund)
01:14
Basically, Mutual Fund is an infestation product which contains capital market assets; it is
stock, debentures, or money market.
01:26
So we have 3 categories as mentioned.
01:29
If you think that Mutual Fund is risky in terms of stock and fix income, we provide
convenience for you.
01:42
So we will explain what can we offer at this point of time.
01:49
Beforehand (let’s discuss) on why Mutual Fund, and why we need to invest?
01:55
As you can see on the chart which is a bit technical,
02:00
That infestation is important because there are 2 things (that need to be highlighted),
02:06
The first one on the left, is the weakness of our national currency (Rupiah) which has been
for over 10 years weakened by 3,7%,
02:15
Then (secondly) we have investment worst enemy (so that you are suggested to invest, not
just put money in a bank) is inflation.
02:25
Our inflation is on the level of 5% for the past 10 years.
02:30
So if we can pick an example from Deposito (Bank Interest) with 7,2% interest, deducted by
5% inflation, it is resulting 2,2% only.
02:50
So we need to invest in either Debentures Market or in Stock which is Equity that can give
return for 8,2% for the past 10 years.
03:02
And to invest in, we provide a Mutual Fund feature which we think is very easy, and here are
the reason why (you need to invest with an easy access)
03:19
First, it’s Diversification. Maybe if you are thinking to invest in property, etc., Mutual fund is
one of investment diversification which is very accessible.
03:36
Besides, the minimum investment amount is very cheap, it starts from Rp. 100.000,--> to Rp.
200.000,--> only.
03:45
So if you earn 5 million rupiah a month, deducted by living cost for 3 million rupiah, then
you can spend either 1 million rupiah or five hundred thousand rupiah in Mutual Fund.
03:58
And nowadays, there are many platforms and applications including BukaReksa which
provide access to purchase it online with a very small amount (to invest in), even starts from
Rp. 10.000,-->
04:16
So it is easy (to access), small amount (of investment), and if one of you just asked, (how) if
we need an emergency fund?
04:28
We think that Mutual Fund can be one of the (funding) alternatives because it is a very liquid
investment
04:34
(let’s say) you purchase it today, then you want to resell it after 2 or 3 days because you need
an emergency fund, you can do it within days period.
04:42
It is not like when you invest in gold or property which we all know that it is not that easy to
resell because of its limited investment liquidity
04:52
But for Mutual Fund, it is always ready and available.
04:56
Then move to (next reason) Attractive Return, this can be one of alternatives because it offers
a very promising return.
05:09
Ashmore, we are a very excellent infestation management (company), we established in
2011, and so far we have 2 excellent products, the first one is Mutual Fund on stock basis,
then Mututal Fund on Debentures basis
05:20
The one that is on stock basis contains of 2 types, first one is focusing on blue chip stock
which is within big companies with big market liquidity, for example BCA Bank, Mandiri
Bank, Unilever, which we put into Ashmore Dana Equitas Nusantara.
05:41
The investment return is very promising, which is 57% in 5 years, so we can say that we
perform very positive within 5 years, then the rest is our competitors, which shows that we
offer better return than them.
05:59
Then there is another type of stock Mutual fund that can be one the investment alternatives, it
is called Ashmore Dana Progresif Nusantara,
06:07
In this (feature) it is focusing on stock which is more dynamic,
06:09
For examples are stock from property sectors, contractors, then media.
06:18
So it has a better (investment) return which is 68% in 5 years.
06:26
And there is another one, for you who are not a high risk taker, we have a Fix Income Mutual
Fund called Ashmore Dana Obligasi Nusantara,
06:39
Which is focusing on (investment) in debentures. Government or National Debentures is an
underline instrument of this Mutual Fund.
06:48
And we believe that the (investment) return is still good, which is 33% in 5 years, comparing
to Bank Interest which has 5% interest rate per year, times 5 years, it is resulting 25% return
only exclude tax.
07:03
So these are all final (calculation), it’s so affordable with only Rp. 100.000,--> to Rp.
200.000,-->, you can already invest, and you can do it periodically in online channels and
retail selling agent banks.
07:20
So how do we enter the infestation and what kind of method used? Because when you hear an
infestation, you hear a risk which is fearful.
07:33
I agree with what Mr. Angkar has explained, when you to do some investment especially in
stock, firstly think of long term (investment), secondly (think of) that it is not a trading.
07:42
So it is about finding a moment, let say today the market is in correction condition, it is an
opportunity to enter (the investment) and hold it for a long term run.
07:56
So you can spend your earning for let say Rp. 1.500.000,--> every month then you hold it for
1 year, then you will earn let say Rp. 2.000.000,--> profit (after a year) that u can use for let
say travelling, but then you keep your Rp. 10.000.000,--> to then put it again on investment.
08:19
So this is can be an opportunity for periodic averaging strategy and we think that trading
requires no expertise,
08:43
So that Manager Investment in our Mutual Fund products are highly experienced which is
more suitable then when you invest in single stocks.
08:54
So when to enter? As I have mentioned, Market Timing, Regular Investing or Lump Sum,
09:02
These (3) types is for your consideration in terms of entering (the market), either you want to
enter it straight, or you want enter it gradually, or if you want to put a big amount of
investment at a time.
09:20
We’d like to give you a perspective that at the end of the day, people who get most profit are
the ones who put their investment gradually.
09:31
Why? because to (predict) market timing is very difficult.
09:36
Even if when we see a market with correction of 5% and we see it attractive in valuation, it
may be down tomorrow, and down deeper the next week ,
09:44
So we will never know when will be the right time, so as we can suggest that you better put
your investment on regular investing or periodic auto investing,
09:56
Which a fix amount will be deducted from your account every month (for investment)
10:01
Then when we talk about digital era, we can see that all millennial generation have already
done (the investment)
10:16
What are the things that you need to pay attention on?
10:18
So as we already know that we need to do regular investing, Mutual Fund is good (for
investment), its diversification,
10:26
But what can we consider as one of the main factors in making decisions?
10:35
You need to know (or read) about macro-->economic condition and global economic
condition.
10:41
You don’t need to know it deeply (as it is already done infestation managers) but at least you
need to know such conditions, the amount of minimum return that you expect,
10:56
So you will have a basic prospect for your investment return. We can use a simple formula
which is Inflation added by growth resulting into P-->growth which is PDB growth.
11:12
So if the inflation growth is 3,5% plus GDP growth 4,5%, I know this sound a bit boring, as it
is a very technical explanation,
11:26
But we need to know it in order to calculate our minimum investment return.
11:38
And this can be seen from the economic condition. We need to see what does macro--
>economic look like which we refers to,
11:56
Profit growth from emiten (companies who offer their mutual fund), macro condition such as
products selling figures, etc.,
12:04
So you need to get used to read (newspaper) even just the headline so that we will have
projection of what our (country) economic condition be like (better or worse).
12:14
So that is it from Ashmore.
English