Trade-off Study of Equity Mutual Fund for Small and Medium Enterprise

Abstract

Abstract The purpose of this research is focused on equity mutual fund in Indonesia at 2007-2013. From equity mutual fund that active at 2007-2013 this research examined whether selected factors influence the performance of equity mutual fund. Then this research also investigated which equity mutual fund's performance exceeded performance of Indonesia stock index (IHSG). 5 equity mutual funds that exceed Indonesia stock index (IHSG) is panin dana maksima, schroder dana istimewa, pratama saham, batavia dana saham, dan BNP Paribas pesona. This research can provide recommendation for small and medium enterprise to allocate their fund in mutual fund. SMEs usually have a volatile revenue and income stream. In order to reduce the operational risk, SMEs allocates high cash position as a buffer during difficult situation. This paper aims to increase earning from this cash position through investment strategy.