Performance of Conventional and Sharia Mutual Funds Using Sharpe, Treynor and Jensens Methods

Abstract

Mutual funds is an instrument investment which is the best recommendation for beginner investor or an alternative investment that more safe and eficient. Investing growth give an opportunity to economic growth and to agregat growth of a country macro economic. That things were positive impacted to many factors for harmony and prospery. Research purpose - Indonesia is a country with the majorities moeslims citizen, to know how money market conventional and sharia mutual funds performances that can become a scient or subject to inform the investors of optional instrument investment it is does not depends to any religion. Using the portofolio method performance there are Sharpe Index, Treynor Index, and Jensen Alpha. And the variables using net asset value of money market mutual funds, risk free BI-7DRR, JKSE, and JII periode time 2017-2021. This research can show that mutual funds is a sustainable investment caused both of risk and return are the same. Research result In 2020 pandemic covid-19 hitten Indonesia and streamed untill 2022 but in the fact investment popularity doing hightly, a lot of campaign and promoting influencer to pull on teenegers become a new investor. Money market mutual fund is a suitable recommendation for investor beginner according with increased of under asset management value of money market mutual funds during pandemic. On the practice there are more options of mutual funds with two principle are conventional and sharia mutual funds.