Financial Performance of Islamic and Conventional Mutual Funds in Indonesia Stock Exchange

Abstract

The purpose of this research is to analyze the comparison of performance between Islamic mutual funds and conventional mutual funds using the calculation of return, Sharpe, and Treynor and to find out which types of mutual funds are the best in 2015-2017. The analysis used in the research is a comparative descriptive method with a quantitative approach. The results of this research indicate that the majority of conventional mutual funds are superior to Islamic mutual funds in 2015-2017, although there are several types of Islamic mutual funds that are superior. Besides that, overall after a different test, it was shown that there were no significant differences between Islamic and mixed mutual funds, although some calculation methods showed differences.

Conventional or Shariah Compliant Investment: Performance Evaluation of Mutual Funds in Pakistan

“…Moreover, it explores their risk and return characteristics in the context of PSX to formulate strategies for fund managers and investors. The performance of mutual funds can be assessed by calculating returns or through the assessment of risk (Pratama et al, 2018). Furthermore, their performance is also dependent upon the fund managers' appetite for risk as well as their management style.…”