Performance of Equity Mutual Fund in Indonesia: The Effect of Mutual Fund and Macroeconomic Factors

Abstract

This study examines the influence of mutual fund factors and macroeconomic factors on the performance of equity funds in Indonesia. This study uses fund size, expense ratio, turnover ratio, and market timing ability as mutual fund factors. Meanwhile, the macroeconomic factor use inflation, economic growth, and the money supply. Mutual fund performance is measured using actual return and Jensen alpha. The sample used in this study is equity funds listed on the Indonesia Stock Exchange (IDX) from June 2016 to May 2020. There are 53 equity mutual funds obtained as a sample. This study uses panel data regression to analyze data. The results showed that mutual fund factors and macroeconomic factors as a whole affect the performance of equity funds in Indonesia. Meanwhile, the test results for each variable show that the expense ratio, market timing ability, economic growth, and money supply have significant effects on the performance of equity funds in Indonesia. On the other side, fund size, turnover ratio, and inflation variables do not have a significant effect on the performance of equity funds in Indonesia. KeywordsEquity Mutual Fund, Mutual Fund Factors, Macroeconomic Factors, Mutual Fund Performance