Abstract
The evaluation of equity mutual fund performance and identification factors that affect mutual fund performance is of great interest to an investor in Indonesia. This study investigates the performance of equity mutual fund by using risk-adjusted performance proposed by Treynor (1965) and examines factors affecting mutual fund performance by using the ability of investment manager (market timing and stock selection skill), fund size, and inflation. To achieve the objectives of this study, a total of 19 equity mutual funds was selected using purposive sampling method from the period from 2011 to 2015. A panel data analysis method has been used to analyze the effect of those factors on the equity mutual fund performance. The result showed that equity mutual fund performance tends to fluctuate in Indonesia. Equity mutual fund performance influenced by stock selection skill and inflation, meanwhile, market timing skill and fund size have no significant effect on the equity mutual fund performance.
Highlights
Mutual funds play an important role in the Indonesian economy and are the investment instrument used by society
This study investigates the performance of equity mutual fund by using risk-adjusted performance proposed by Treynor (1965) and examines factors affecting mutual fund performance by using the ability of investment manager, fund size, and inflation
Equity mutual fund performance influenced by stock selection skill and inflation, market timing skill and fund size have no significant effect on the equity mutual fund performance
Summary
Mutual funds play an important role in the Indonesian economy and are the investment instrument used by society. Mutual funds are a pool of money and managed by investment companies. This type of investment is known to have low transaction costs, portfolio diversification and managed by a professional investment manager. Mutual funds have become one of strategic investment activities especially for small investors who don’t have time and expertise in calculating their investment risk and return (Pangestuti, Wahyudi, & Robiyanto, 2017). The type of mutual fund portfolio traded consists of money market, equity, fixed income, mixed, protected, guaranteed and index mutual funds. High interest of investor in equity mutual fund pushed by the higher expectation of investment return compared to another type of mutual fund portfolio. Investors expect the good equity mutual fund performance over time
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
