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Analysis of Islamic mutual funds performance compared to conventional mutual funds and its relation towards investor preferences in Indonesia

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The mutual fund is one of the most important financial instruments in the capital market. Compared to other instruments, it is commonly considered as an easy-to- maintain investment. The opportunity for growth in the mutual funds industry is high, but low levels of education regarding mutual funds investment result in a relatively low demand of the instrument when compared to the total population of Indonesia. The purpose of this research is to analyze, evaluate, and compare the performance of two types of mutual funds by measuring their productivity and efficiency. In addition, the relationship between performance and Indonesian investor preferences is also analyzed. The data is analyzed using non-parametrical measurements of efficiency instead of the regular (parametrical) methods. To measure technical and efficiency change, data envelopment analysis (DEA) is used. The results of this study indicate that Islamic mutual funds perform better than their conventional counterparts due to higher productivity and efficiency. The relative efficiency has a great impact to the Total Factor Productivity whereas the technical change is inefficient due to its deterioration Findings on investors? preference in selecting an investment is based on the supporting research analyzed using SPSS. Investors in Indonesia tend to select an investment that suits their beliefs and religion and with a Muslim-dominated population, there is unquestionably great opportunity for Islamic mutual funds to further outperform conventional ones in terms of performance and efficiency in Indonesia.

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Availability

B01432

(wh)

Available

Detail Information

Series Title

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Call Number

1432

Publisher

: Swiss German University., 2013

Collation

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Language

English

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Classification

NONE

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Edition

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Subject(s)

IBA

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