Over the past 10 years, the Jakarta Composite Index, also known as the JCI or IHSG, has recorded a consistent increase in value during the month of December. Since 2012, every December the JCI has yielded investors positive returns, bringing the probability of seeing gains during this month to 100%.

So what exactly causes this strong performance towards the end of the fiscal year? One of the causes is a phenomenon known as window dressing in which companies take measures to make their financial reporting appear as positive as possible. Companies listed on the stock exchange are required to publish their financial statements at the end of the fiscal year. As these reports reflect how well or poorly a company has performed, they will often try to find ways in order to boost their performance specifically for the purpose of the optics during this reporting period. As a result of the visible performance increase, stock prices usually also experience a rally around this time.

This rally in stocks is also reflected in the performance of equity mutual funds, namely those with holdings in blue chip stock as these companies especially have it in their interest to close out the year with strong stock performance.

Investors can take advantage of this phenomenon by implementing a tactical strategy of investing in equity funds that are overweight in blue chip stocks towards the end of the year.

Provided below are the top performing equity funds available on the moduit platform. Investors seeking to take advantage of the year end window dressing rally may consider these funds.