Abstract
This study aims to discover the factors that affect equity fund performance in companies listed on the Indonesia Stock Exchange (IDX) during 2015–2018. This research is quantitative. Past performance, stock selection skills, market timing abilities, fund size, fund age are independent variables, while fund performance is the dependent variable. The population in this study was 73 equity funds. A total of 21 equity funds were selected as the sample by the purposive sampling method. The analytical method used is panel data regression analysis using the EViews program. Hypotheses were tested using a t-test with a significance level of alpha 0.05. The results show that equity fund past performance, stock selection skill, market timing ability, fund size, fund age and IDX composite index simultaneously have a significant effect on equity fund performance. Stock selection skill and IDX composite index partially have a positive and significant effect on equity fund performance. However, past performance, market timing ability, fund size and fund age have no positive and significant effect on equity fund performance. AcknowledgmentAll authors would like to thank Universitas Putra Indonesia YPTK Padang and Yayasan Perguruan Tinggi Komputer for financial support. Any remaining errors are our own.
Highlights
Investment in mutual fund is the right step for people who want to start investing in the capital market because it is easier and inexpensive
To understand the factors that affect equity fund performance, in this research, equity past performance, stock selection skills, market timing ability, fund size, fund age and Indonesia Stock Exchange (IDX) composite index are used as predictor variables
Past performance, stock selection skills, market timing ability, fund size, fund size, and IDX composite index have a significant effect on equity fund performance
Summary
Investment in mutual fund is the right step for people who want to start investing in the capital market because it is easier and inexpensive. The increase in Net Asset Value (NAV) or Asset Under Management (AUM) is not accompanied by an increase in return This is caused by the lack of investors’ ability to choose the right mutual fund. To understand the factors that affect equity fund performance, in this research, equity past performance, stock selection skills, market timing ability, fund size, fund age and IDX composite index are used as predictor variables. This is because the mapping of previous studies obtained the gap phenomenon from the results of the study. Both of these can provide high return funds and reduce the risk of default
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