Style Analysis: Asset Allocation and Evaluation of Sharia Equity Fund Performance

  • Opi Prisilia Perbanas Institute
  • Acong Dewantoro Marsono Perbanas Institute

Abstract

The purpose of this research is to analyze the characteristic style of sharia equity funds such as asset allocation, investment strategy, and evaluation of its performance. The analysis technique used in this study is return based style analysis by observing ten asset class factor and eight of sharia equity funds in Indonesia. The results found that sharia equity fund in Indonesia allocates funds to the Sharia shares in almost all asset class factor with passive strategy, but the actual performance has not been able to outperform its style performance. Only one from eight Equity funds can outperform its style by using a more passive strategy compared to other equity funds. Its result indicates that almost all sharia equity funds in Indonesia do not choose the correct investment strategy style.

Published
2020-05-31
How to Cite
PRISILIA, Opi; MARSONO, Acong Dewantoro. Style Analysis: Asset Allocation and Evaluation of Sharia Equity Fund Performance. Journal of Emerging Economies and Islamic Research, [S.l.], v. 8, n. 2, p. 51-59, may 2020. ISSN 2289-2559. Available at: <http://myjms.moe.gov.my/index.php/JEEIR/article/view/8504>. Date accessed: 13 july 2020. doi: https://doi.org/10.24191/jeeir.v8i2.8504.