The Effect of Asset Allocation Policy, Interest Rates, Inflation, Mutual Fund Size, and Mutual Fund Age on Mutual Fund Performance in Indonesia

Abstract

This study aims to examine the effect of asset allocation policy, interest rate (BI Rate), inflation, fund size, and fund age on the performance of conventional mutual funds in Indonesia during the 2021–2024 period. The study is motivated by the increasing number of mutual fund investors that was not accompanied by a consistent increase in the industry's Net Asset Value (NAV). A quantitative associative approach was employed using secondary data obtained from the Financial Services Authority (OJK), Bank Indonesia, Statistics Indonesia (BPS), Bareksa, and the mutual funds' fact sheets. The sample consisted of 32 conventional mutual funds selected through purposive sampling. Data were analyzed using descriptive statistics, classical assumption tests, and multiple linear regression with SPSS. The findings indicate that the regression model satisfied the classical assumptions and was appropriate for hypothesis testing. Simultaneously, the independent variables affected mutual fund performance. Partially, the BI Rate, inflation, fund size, and fund age showed varying effects on mutual fund performance, whereas the asset allocation policy variable could not be further analyzed because it was constant and excluded from the regression model. These findings indicate that macroeconomic conditions and internal mutual fund characteristics play an important role in determining the performance of conventional mutual funds in Indonesia.