Indonesia Conference Directory

Islamic mutual funds emerged in Indonesia in 1997 and became a favourite investment instrument for investors. Islamic mutual funds have a rapid growth in TNA of 285.40% from 2013 to 2018 which is superior to conventional mutual funds with a growth of only 157.17% in the same period. Islamic mutual funds are also growing rapidly in countries with Muslim populations and countries that have advanced Islamic financial systems, also able to outperform conventional mutual funds and its benchmarks. In the Indonesian market, despite the majority of populations are Muslim, Islamic mutual funds do not have a better performance than conventional mutual funds. This study also discusses the associations between the fund-flow and the performance of conventional and Islamic stocks and mixed funds. Evidence suggests that in the Indonesian market, the fund-flow and performance are negative and convex positive.