The mutual funds and securities portal Invisee was acquired by online investment platform Fundtastic for US$6.5 million. This will help Fundtastic in the expansion of its products.
In a virtual press conference on Monday, the Fundtastic co-founder Franky Chandra said that they have been in talks with Invisee since December last year. The company decided to acquire the portal this month. He further stated that Fundtastic has gained 100 percent ownership of Invisee.
Fundtastic to expand to insurance products with the Invisee acquisition
With this acquisition, Fundtastic can sell mutual funds directly. Invisee is a mutual fund selling agent (APERD) licensed by the Financial Services Authority (OJK). Franky said that before acquisition they were working as two different companies, both trying to make a profit. This merger will improve profitability for its customers and also consolidate its corporate structure.
Franky said that the company will now expand to insurance products. The insurance products will go live in September. Currently, they are in talks with many insurance providers. He said that the company won’t be focusing on microinsurance products. They will align their products as per market demand.
Invisee users’ accounts to be transferred automatically to FUNDtastic+
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The Invisee president director Eri Primaria said that they will allow the portal’s 100, 000 users to automatically transfer their accounts to Fundtastic’s new mutual funds’ branch, FUNDtastic+, or close the accounts. He said that they have also consulted on this issue with the OJK. He said that they expect the account transfers to be completed by August.
Total trade of retail investors up by 86 percent
Hasan Fawzi, the Indonesia Stock Exchange (IDX) development director said that the total trade of retail investors is up by 86 percent. The number of retail investors is increasing continuously over the last few months. This is due to the growing awareness of investment, despite the volatile market condition due to the coronavirus pandemic.
It has also been observed that the youth are becoming more prominent in the stock market. The number of individual investors between the age of 18 to 25 has increased by 338.61 percent from 2016 to May 2020. This is as per the Indonesian Central Securities Depository (KSEI). The KSEI data also depicted the number of investors between the age of 26 to 30 increased by 204.97 percent in the same period.