Abstract:
By the end of 2018, the net asset value in total and the number of Sharia mutual
funds in Indonesia is dominated by the Sharia equity fund. Therefore, this study
sought to address the factors of internal and external factors affecting the Sharia
equity funds’ performance in Indonesia in the period 2010-2018. The fund
performance is measured with the Sharpe ratio. The determinants of fund
performance are investment manager’s Stock selection skill, Market timing ability,
and Percentage change in asset under management as internal factors. In addition,
the selected external factors are Inflation rate and Percentage change in exchange
rate. This study adopted panel data analysis using secondary data of 8 selected
samples of Sharia equity funds. The results revealed that investment manager’s
Stock selection skill, Percentage change in asset under management, and Inflation
rate positively and significantly affect performance of Sharia equity funds. On the
other hand, investment manager’s Market timing ability insignificantly affects
Sharia equity fund performance. While, Percentage change in exchange rate
negatively and significantly affects Sharia Equity Funds Performance.
