DOI: 10.5176/2251-1997_AF15.45
Authors: Sylviana Maya Damayanti and Cici Cintyawati
Abstract:
This study aims to determine the factors that affect the performance of mutual funds, most specificallyequity mutual funds. There are several factors being considered to have an effect on the performance of equity mutual funds such as: Net Asset Value (NAV), fund age, past performance, asset allocation, January effect, equity funds with blue chip or non-blue chip stocks, equity funds owned by insurance or non-insurance, exchange rate, and investor behavior. factor. In this study the researchers have collected data from January 2008 to December 2014. For the purpose of the study the researchers have selected a sample of 30 equity mutual funds which were still active from 2008 to 2014. The results are processed using Sharpe ratio to measure the magnitude of risk premium for each unit of risk taken. The result shows that all of the variables have significant influence on the performance of equity mutual funds. Partially, NAV, fund age, asset allocation, January Effect, exchange rate, and investor behavior have significant influence on the performance of equity mutual funds. While other variables such as past performance, Blue Chip and Non-Blue Chip Equity Mutual Funds and insurance and non-insurance companies do not have significant influence on the performance of equity mutual funds in Indonesia. All of the variables studied have great contribution on the performance of equity mutual funds. This finding can guide investment managers in formulating an appropriate investment strategy for investors who want to put their funds into equity funds.
Keywords: Equity Mutual Funds, Performance, Determinants of Mutual Funds, Sharpe,
Updating...