Mutual Fund Market Case Study

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The capital market has been recognized as one of the driving force of the economies of Indonesia as stated in Law No. 8 of 1995 about the Capital Markets, especially related to its role as a source of financing for the business and investment opportunities for investors. As a developing country, Indonesia needs the support of substantial funds. These funds support very potential derived from investment activities through the role of the capital market as a source of financing for long-term development. Favorable capital market characterized by market capitalization size, a large number of investors who actively trade, variety of financial instruments, market liquidity, the availability of market information, investor protection and the application…show more content…
An investor before investing in mutual funds would need to examine the performance of mutual funds. Investors certainly do not want to put their money in investments that are not favorable to him. This mutual fund performance then becomes a very important thing to consider in doing an investment. So the authors wanted to examine the factors that influence the performance of a mutual fund. There are several factors that affect the performance of mutual funds are considered such as: Asset Under Management (AUM), fund age, past performance t-1, asset allocation, turn of the year, exchange rate, blue chip stocks, insurance company equity mutual fund, and investor…show more content…
With the existence of this study, it could be a reference for investors to invest their funds into equity mutual funds. In particular, this study possessed the following objectives: 1. To understand the influence of various variables on the performance of equity mutual fund simultaneously. In the study, the variables studied in particular are: Asset Under Management (AUM), fund age, past performance, asset allocation, turn of the year, exchange rate, blue chip stocks, insurance company equity mutual fund and investor behavior. 2. To understand the influence of various variables on the performance of equity mutual fund partially. 1.5 Problem Limitation In this study, the factors studied will be limited to several factors mutual funds are a lot of debate. These factors include Asset Under Management (AUM), fund age, past performance t-1, portfolio of mutual funds, turn of the year, blue chip stocks, insurance company equity mutual fund, external factors such as the exchange rate against the US dollar, and other factors such as investor

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