Money Market Funds the Only Asset Class with Positive Performance Since Start of 2026
Bareksa – Amid market turmoil affecting nearly all asset classes in 2026, money market funds (MMFs) stand out with positive performance: all 48 MMF products available on Bareksa have posted year-to-date (YTD) gains, with no exceptions. This is no coincidence, but a reflection of how MMFs operate.
Average YTD performance by asset class as of April 2026:
Source: Bareksa, data as of 25/5/2026
Why are MMFs resilient to current market pressures?
Three structural reasons explain why MMFs are benefiting from the current market conditions.
First, rising BI rates benefit MMFs, not harm them.
Unlike fixed-income funds (RDPT), the BI rate hike to 5.25% in May 2026 has boosted returns on money market instruments, deposits, and short-term SBI (Indonesian Government Securities), which MMFs invest in. This directly increases MMF yields.
Second, no price risk.
MMFs invest only in instruments with maturities under one year. There are no long-term bonds whose prices could fall due to yield changes. The net asset value (NAV) of MMFs moves steadily forward, like a well-oiled machine.
Third, full liquidity.
Redemptions typically take 1-2 business days, much faster than fixed-income or other mutual funds which can take 3-7 days. This makes MMFs a flexible parking tool, not just an investment instrument.
Not All Are Equal
While all MMFs are positive, performance varies significantly between products. The highest YTD return is 2.1%, while the lowest is 0.61%—a difference of over three times.
Top Money Market Funds on Bareksa Barometer:
Source: Bareksa, data as of 25/5/2026
These performance differences are usually determined by the mix of deposits versus SBI, the credit ratings of banks where deposits are placed, and management cost efficiency (expense ratio). Products with high expense ratios consistently lag in low-margin asset classes like MMFs.
MMFs vs Deposits: Which is Better Now?
This question frequently arises. To compare, consider the Deposit Insurance Scheme (LPS) interest rate cap (TBP). As of January 2026, LPS set the TBP for commercial bank rupiah deposits at 3.5% from 1 February to 31 May 2026, meaning deposits with interest above 3.5% are not insured.
With the LPS TBP at 3.5%, top MMFs offering 5.27–5.69% annual returns are more attractive on a risk-adjusted basis, providing higher returns without insurance limits. Additionally, MMFs are exempt from the 20% deposit interest tax deducted at source.
Note: The LPS TBP is reviewed three times a year and may adjust following the BI rate hike to 5.25% in May 2026. Monitor LPS announcements for updated figures.
When Should You Use MMFs?
- Emergency funds.
MMFs are ideal for 3-6 months’ worth of emergency expenses. They are more productive than regular savings accounts, more liquid than deposits, and carry no risk of capital loss.
- Temporary parking while waiting for opportunities.
Investors exiting equity or fixed-income funds but unsure of the next move can park funds in MMFs while monitoring market trends.
- Short-term financial goals under two years.
For holidays, vehicle down payments, wedding costs, or any short-term objectives, MMFs are safer than volatile instruments.
Conclusion
Money market funds may not grab headlines, but in 2026 they are the quiet champions—the only asset class where 100% of products have delivered positive YTD returns. Benefiting from rising BI rates, highly liquid, and low-risk, they average 1.49% YTD with top performers reaching 2.1%, outpacing many bank deposits without the 20% interest tax. In turbulent markets, sometimes the best outcome is avoiding losses.
FAQ
- Can money market funds lose value?
Historically rare, and none of the 48 products have posted negative YTD returns. However, MMFs are not insured like LPS deposits; there is a small credit risk in underlying instruments, though minimal for high Barometer-rated products.
- For emergency funds, which is better: MMFs or deposits?
Depends on priorities. The official benchmark is the LPS TBP: commercial bank rupiah deposits are guaranteed only up to 3.5% annual interest (effective February 2026). Top Bareksa MMFs offer 5.27–5.69% annual returns with no insurance cap and no 20% interest tax. However, deposits provide guaranteed returns, which MMFs lack. For emergency funds needing both productivity and flexible access, MMFs with Barometer scores of 4 or higher are worth considering.
- What is a reasonable return for MMFs in 2026?
Based on Bareksa data for 48 MMF products as of May 2026, annual returns range from 2.77% to 5.69% with an average of 4.51%. Products with Barometer scores of 4 or higher typically offer 4.58–5.69%. Returns significantly above 5.69% should be scrutinised for underlying strategies and risks.
- Do Sharia-compliant MMFs perform differently?
Bareksa data shows some Sharia MMFs, such as Insight Money Syariah, achieve YTD returns of 1.98% and 5.69% annual returns, matching top conventional products. The difference lies not in returns but in Sharia compliance.