An Analysis of Influence of Interest Rates, Rupiah Exchange Rates, Gross Domestic Product (GDP), Inflation, and Indonesia Composite Index (ICI) on the Performance of Mutual Funds Using Panel Data Methods

DOI

10.2991/icastss-19.2019.62How to use a DOI?

Keywords

interest rates, Rupiah exchange rates, GDP, Inflation, ICI, mutual funds

Abstract

This study investigates the influence of interest rates, Rupiah exchange rates towards the US Dollar, Gross Domestic Product (GDP), inflation, Indonesia Composite Index (ICI) towards the performance of equity mutual fund. Based on the results of previous studies conducted by Purwaningsih, et al. in 2015-2016, it was found that there was a significant influence of inflation, interest rates, and ICI simultaneously on mutual fund performance. Partially, inflation had a significant effect on mutual fund performance with a negative direction of influence; the interest rate had a significant effect on mutual fund performance with a positive direction of influence, likewise, the ICI partially had a significant effect on mutual fund performance with a positive direction of influence. Macroeconomic indicators that are often associated with the capital market are fluctuations in interest rates, the rupiah exchange rates, ICI, the growth of GDP, and inflation. We found in our our previous study that Rupiah exchange rates variable against US Dollar and GDP was not involved in the performance of equity mutual fund. Therefore, this research is developed by involving these two variables. The ability of investors to understand and predict future macroeconomic conditions will be very useful in making profitable investment decisions. For this reason, an investor must consider a number of macroeconomic indicators that can assist them in making their investment decisions. This research aims to analyze the effect of interest rates, rupiah exchange rates, GDP, inflation and ICI on the performance of equity mutual fund, and obtain a regression model using the Panel Data method based on data from several periods in the last year (2015-2017). From this research, the results show that interest rates, exchange rates, GDP, inflation and ICI have a significant effect on mutual fund performance with a total percentage of influence by 99.94 percent, while the remaining 0.06 percent is explained by other factors that are not included in the model.

Copyright

© 2019, 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  - Siti Samsiyah Purwaningsih
PY  - 2019/10
DA  - 2019/10
TI  - An Analysis of Influence of Interest Rates, Rupiah Exchange Rates, Gross Domestic Product (GDP), Inflation, and Indonesia Composite Index (ICI) on the Performance of Mutual Funds Using Panel Data Methods
BT  - Proceedings of the International Conference On Applied Science and Technology 2019 - Social Sciences Track (iCASTSS 2019)
PB  - Atlantis Press
SP  - 105
EP  - 108
SN  - 2352-5398
UR  - https://doi.org/10.2991/icastss-19.2019.62
DO  - 10.2991/icastss-19.2019.62
ID  - Purwaningsih2019/10
ER  -