Offshore Mutual Funds Remain Attractive in 2026

Driven by Technology Sector and Dollar Strength

The outlook for offshore mutual funds denominated in US dollars remains positive heading into 2026, supported by the recent strengthening of the US dollar and robust performance in global stock markets. According to Doni Firdaus, Investment Director at Bahana TCW, dollar-denominated equity funds demonstrated strong resilience throughout 2025, maintaining relatively good performance compared to other asset classes.

Technology Sector as Primary Catalyst

The primary driver behind this positive performance has been the technology information sector, with particular emphasis on semiconductor and artificial intelligence (AI) industries. These sub-sectors have continued to act as significant catalysts for global economic growth, driving demand for related investments and boosting the overall performance of dollar-denominated funds.

Market Outlook and Investor Considerations

As we approach 2026, investors in offshore mutual funds should consider the ongoing impact of global technological advancements and currency fluctuations. The continued strength of the US dollar is likely to maintain its positive influence on these funds, while technological innovation remains a key growth driver. Investors should monitor these factors closely to optimize their investment strategies in the offshore mutual fund market.