Abstract
This study aims to know the effect of Leverage and Asset Prices on Mutual Fund Risk. This research was conducted at equity mutual fund companies listed in OJK for the period 2018-2019. This study used purposive sampling with a total sample of 23 equity mutual funds. The type of data used is quantitative data and the data source is in the form of company annual financial reports. The data analysis tools used were descriptive statistics and panel data regression The results of this study find that mutual fund is managed by an investment manager with high leverage and high asset prices will have a high risk as well, and can be suppressed when the investment manager creates a low level of leverage and a low asset prices.
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 Keywords: Leverage, Asset Price, and Mutual Fund Risk
Highlights
Boguth & Simutin (2014) shows that theoretically mutual funds will have a risk of leverage when constrained and increased, but this does not apply to all mutual fund products
In companies Aberdeen Standard Investments Indonesia, PT with mutual fund products Aberdeen Standard Indonesia Balanced Growth Fund, there was a decrease in the value of leverage from 34,152,883,330 in 2018 to 30,993,494,784 in 2019, with the condition that the beta value in 2018 was 0.715 and increased in 2019 to 0.722
When compared to Equity Mutual Funds which only focus on one instrument, while Mixed Mutual Funds can combine stocks with debt, bonds and others
Summary
Boguth & Simutin (2014) shows that theoretically mutual funds will have a risk of leverage when constrained and increased, but this does not apply to all mutual fund products. In companies Aberdeen Standard Investments Indonesia, PT with mutual fund products Aberdeen Standard Indonesia Balanced Growth Fund, there was a decrease in the value of leverage from 34,152,883,330 in 2018 to 30,993,494,784 in 2019, with the condition that the beta value in 2018 was 0.715 and increased in 2019 to 0.722. Apart from emphasizing leverage, asset prices influence the risk of mutual fund companies. When funding limits are high and have strict constraints on the use of asset prices the risk factor is high as well, but this does not apply to all mutual fund products. The value of asset prices owned decreased in 2018 by 1,907.21 to 1,901.37 in 2019 the risk or beta value increased from 0.715 in 2018 to 0.722 in 2019. This is not in accordance with the above statement that the greater the asset value, The more big risk too
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