Abstract
Indonesia is one of the countries with the largest Muslim population about 87%. The high population of the Muslim in Indonesia should be able to provide great potential in terms of Islamic finance as investment activity, which will certainly contribute positively to the Indonesian economy. Investors will always be interested in investment with high return and low risk. One of the alternative is mutual fund especially sharia equity mutual funds. The choice of the right mutual fund should pay attention to how the performance of the mutual fund. This study examine how performance of sharia equity mutual funds using Sharpe, Treynor and Jensen method are affected by stock selectivity skill, market timing ability, risk and size during 2012-2017. The finding of this research are stock selectivity skill,market timing ability, risk and size are significantly positive influence to the performance of sharia equity mutual fund. The influence of stock selectivity skill, market timing ability, risk and size are very strong if measured by treynor method.
Highlights
Investment activities related to the capital market
Based on table 2, adjusted R2 in model 1 is 0.722, which means mutual fund performance when measured by the sharpe method is influenced by stock selectivity skills, market timing abilities, risk and size by 72.2% while 27.8% is influenced by other variables
Adjusted R2 in model 2 is 0.911, which means mutual fund performance when measured by the Treynor method is influenced by stock selectivity skills, market timing ability, risk and size by 91.1% while 8.9% is influenced by other variables
Summary
Investment activities related to the capital market. The capital market has a role in the country's economy. The results showed that in Malaysia, the are positive effect on stock selectivity skills and market timing abilities to the performance of shariamutual funds. Abdel-Kader and Qing11also conducted research examining stock selectivity skills and market timing abilities and their effects on mutual fund performance. Abdel-Kader and Qing's findings in his research are that stock selectivity skills and market timing abilities have no effect on mutual fund performance. This happened because mutual funds underperformed the market. The existence of a variety of research results and research gaps, this study will reexamine the effect of stock selectivity skills, market timing abilities, risk and size on the performance of shariamutual fund. The focus of this research is on sharia equity funds because of interest in the rapid development of sharia products, especially sharia financial products in Indonesia
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