Corona Virus (COVID-19) is declared as Pandemic by WHO
Did you know that COVID-19, which has spread over more than 110 countries with more than 4,300 victims (as of 11 March 2020), has been declared as pandemic by the World Health Organization (WHO). But what is a pandemic?
Based on the Kamus Besar Bahasa Indonesia (KBBI), the word pandemic is defined as a plague that is contagious everywhere, covering a large geographical area. There are 3 general criteria for a pandemic reported by CNN Indonesia namely a virus that could cause illness or death, ongoing person-to-person virus transmission, and evidence of worldwide spread.
COVID-19 effect on Indonesia equity market
COVID-19 has spread to more than 110 countries in the world, including Indonesia although the number of people infected with COVID-19 in Indonesia is not as many if compared with other countries, such as 34 infected and 1 death (as of 11 March 2020). Interestingly, COVID-19 victims in Indonesia are not as many if compared with dengue epidemic victims with 17,820 transmission cases and 104 fatalities.
However, similarly with what happened with the market globally, Indonesia equity market is affected negatively by this COVID-19 outbreak. Market fear upon global economy slow down caused by COVID-19 has impacted JCI index to decrease by -22,28% year to date 2020 (as of 12 March 2020)!
Hence, with current market condition, you may wonder if this is the right time to start or add on your investment portfolio? When is the right time to invest? Is there any investment instrument with positive performance in this current market situation?
The answer to your questions above is: Yes! Anytime is the right time to invest and there is actually asset class that still gives positive performance in this market condition year to date.
Although JCI has declined by -22,28% year to date, bonds index BINDO still has positive performance of 2,19% (as of 11 March 2020). Based on research that was done by Moduit Team, within the past 5 years, BINDO has positive performance of approximately 8,94% per annum.
With the mentioned approximate return, how much will your investment be at the end of you investment period? For example, if you invest Rp 10.000.000 for 5 years with return of 8,94% per annum, the total investment amount at the end of 5 years will be Rp 15.343.939. Your total investment could be higher if your beginning investment amount is higher! Do you want to know your own total investment amount with this scenario? You could check the calculation using Moduit Navigator that is available in Moduit application!
So, don’t worry and don’t be afraid to start investing!
Note: Past performance does not reflect future performance.