INVESTORS who put money into the Indonesian stock market should realise good returns in a few years, Fidelity Investment says.
The unit trust group says Jakarta will be one of Asia's best performers over the next years. Other Asian markets will also do well.
'Price-earnings ratios in Indonesia are now at a low point and there are some good fundamentals over there,' said Lisa Popick, retail marketing director.
'The currency is stable and there has been a corporate tax cut that is in favour of developing business.' But people should be aware of the greater risk of buying a unit trust that was invested in one country rather than one that was invested in markets throughout Asia, she said.
'If you do not have the constitution to handle that sort of single-country risk, you would probably be much better off investing in a regional fund, like our Southeast Asian Fund or our ASEAN Fund,' she said.
Fidelity operates a scheme that allows people to invest in these and other funds each month. The initial investment is $20,000 in any of the company's funds and the minimum monthly investment is $3,000.
Schroders Asia has also launched a regular investment scheme that is open to anyone who invests at least $2,000 each month in one of its unit trusts.
