Exchange Traded Fund (ETF) : Inovasi Dalam Dunia Industri Reksa Dana di Indonesia

Abstract

Mutual fund is an investment alternative for investors, especially for small investors and those who have less time and skill to count the risks of their investments. Mutual fund is designed as tool to gather fund from public that have the capital, will to invest, but only have limited time and knowledge. Beside that, through Mutual Fund, it is expected that the number of local investors in the Indonesia's capital market can increase. Generally, Mutual fund is defined as a mean to collect fund from the investment society to be invested in portfolios by the fund manager. This definition is also written in the Capital Market Law No. 8/1995 section I clause (27) regarding mutual fund. There are three points shown on this statement. First, mutual fund collects fund from the society. Second, the fund is then invested in the securities portfolio. Third, the fund is managed by an Investment Manager. In order to fulfill government's commitment in developing mutual fund product, Indonesian Stock Exchange (IDX) launched Exchange Trade Fund (ETF) at December 2007. ETF can simply be defined as mutual fund traded in the exchange. Just like mutual fund, ETF is a Collective Investment Contract, but similar to shares its investment unit is listed and traded in the exchange. The main purpose of this action is to give an investment alternative product for investors