The impacts of general mutual funds and macroeconomic factors on the performance of an infrastructure oriented mutual fund in Indonesia

Abstract

Findings – The results show that the RDPT performance is co-integrated to the performances of the general types of mutual funds and macroeconomic variables. From the ECM estimation, we find that the performance of the RDPT is negatively affected by the performances of the Exchange Trade Fund (ET) and the Fixed Income Fund (FI) but positively affected by the Capital Protected Fund (CP). The other types of general mutual funds are not significant such as the Equity Fund (EQ), the Index Fund (IF), the Mixed Asset Fund (MA), and the Money Market Fund (MM). From macroeconomic factors, the Consumer Price Index (CPI) has negative effect on the RDPT meanwhile the Real Gross Domestic Product (RGDP) and Indonesian Central Bank policy rate (BI Rate) have positive effects. The other macroeconomic variables, such as Indonesian exchange (IDX) composite index and exchange rate (ER) are not significant. The paper conclusively discovers that that some of the general type of mutual funds have substitution effects to the RDPT and the others have complementary effects. Moreover, the performance of the RDPT is depend on macroeconomic variables event though not all are statistically significant.