Indonesian Equity Fund Performance Determinants

Investors have challenges to choose mutual funds that consistently perform best due to facing many choices and different returns of mutual funds as an investment instrument. This research was conducted to find out the determinants of the equity mutual funds’ performance with a modern portfolio analysis approach which is the development of portfolio theory put forward by Markowitz. The results showed that the ability of investment managers to conduct stock selection has a positive and significant effect while the ability of investment managers in terms of market timing shows a negative and significant effect on the performance of equity mutual fund as measured by Treynor Measure and Sharpe Ratio. Other results show that the age of a mutual fund both have a negative impact to the performance of equity mutual funds in 2019 as measured by the Sharpe Ratio approach, while the size of the equity mutual fund has no impact to both measurements of the performance of equity mutual funds. This research is expected to particularly contribute to mutual fund investors in terms of selecting good-performing equity mutual funds and for investment managers in determining the company's strategy in managing investor funds in the form of mutual funds.