Investment Strategy in Sharia Mutual Funds: Case Study on the Indonesian Capital Market

DOI

10.2991/assehr.k.210531.056How to use a DOI?

Keywords

Sharia Mutual Fund, Performance, Performance Persistence, Sharia Mutual Fund Characteristics

Abstract

Sharia (Islamic) mutual funds, which are one of the securities that are categorized as socially responsible investment funds, are experiencing rapid growth in Indonesia. For this reason, it is necessary to study the strategies to invest in sharia mutual funds in Indonesia. This study uses three aspects to guide investment strategies in sharia mutual funds: previous year’s performance of sharia mutual funds, capital market performance, and the characteristics of mutual fund companies. By using data of Islamic mutual fund in Indonesia from 2010 to 2018, this study offers the following strategies. To invest in fixed income mutual funds, select fixed income mutual funds which in the previous period were in the Top 5 returns. To invest in mixed mutual funds, choose newly issued mixed mutual funds, especially when that year there were several new mixed mutual funds offered. For stock mutual funds, choose mutual funds with the cheapest transaction costs and when the stock market is estimated to have good prospects.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Zaenal Arifin
AU  - Sri Mulyati
PY  - 2021
DA  - 2021/05/31
TI  - Investment Strategy in Sharia Mutual Funds: Case Study on the Indonesian Capital Market
BT  - Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)
PB  - Atlantis Press
SP  - 434
EP  - 440
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210531.056
DO  - 10.2991/assehr.k.210531.056
ID  - Arifin2021
ER  -