The Effect of Stock Selection Ability, Market Timing Ability, Fund Size and Portfolio Turnover on Equity Fund Performance in Indonesia

ABSTRACT : Mutual funds are a group of funds managed by an investment manager into a portfolio ofsecurities that can be traded to the public at an offering price and the withdrawal is reflected in the net assetvalue. This study aims to analyze the effect of the variable stock selection ability, market timing ability, fundsize, and portfolio turnover on equity fund performance, especially in Indonesia. This research was conductedon equity funds that have been registered and active in the Indonesian Financial Services Authority (OJK) andthe Indonesia Stock Exchange with an observation period of 2018-2019. The sample selection in this study wascarried out using purposive sampling technique which resulted in a total sample size of 38 equity funds. Thedata collection method in this study is non-participant observation with observations made on data that has beenpublished on the official website of the Financial Services Authority (OJK). The data analysis technique used ismultiple linear regression analysis. The research results obtained in this study shows that the variable stockselection ability and market timing ability have a positive effect on equity fund performance, while the variablesof fund size and portfolio turnover have no effect on equity fund performance.

Keywords : equity fund performance, fund size, market timing ability, portfolio turnover, stock selection ability