If an Investment Manager no longer holds a business license, the Indonesia Financial Services Authority (OJK) has the authority to appoint another Investment Manager to manage investor funds in the mutual fund product. Similarly, if a Custodian Bank no longer holds an approval letter, the OJK also has the authority to appoint a replacement Custodian Bank. Secondly, the OJK also has the authority to appoint one of the parties that still holds a license, either an Investment Manager or Custodian Bank, to liquidate the mutual fund. This situation can occur if there is no replacement Investment Manager or Custodian Bank available. Therefore, there is no need to worry – investor funds will still remain secure even if the Investment Manager closes down, which is a very unlikely scenario.

Also read:

Do mutual funds have risk?

Are mutual funds considered safe and protected by the government?

Why choose mutual funds over direct investment in the capital market?