THE INFLUENCE OF EQUITY MULTIPLES OF JAKARTA ISLAMIC INDEX ON NET ASSET VALUE (NAV) RETURN OF SHARIA EQUITY FUND

Abstract

As the increasing of Indonesia stock market return, it also followed by the increasing number of mutual fund investors. Mutual fund has become one of the best investment choice among the investor. The diversified asset and the nature of the mutual fund has become one of the reason for the investors. However, the increase in Net Asset Value of mutual fund in Indonesia is not followed by the increasing performance of the sharia equity fund, which makes Financial Services Authority of Indonesia give more concern of this industry. The theoretical framework is focused on the relationship of market equity multiples of Jakarta Islamic Index which is price earnings ratio (X1), price to book value (X2), dividend yield (X3) as independent variables and net asset value (Y) as the dependent variables. The research methodology uses a quantitative method where the data taken for the analysis is secondary. The analysis show that all the independent variables have a significance relationship on net asset value of mutual fund. In summary, the market equity multiples can be used to measure the performance of the market in term of net asset value as the return and can be an indicator for the best timing to invest in the capital markets.