Liquidity And Market Timing To Sharia Fixed Income Mutual Fund Performance: Evidence From Indonesia

Abstract

Abstract Background - The performance of sharia fixed income mutual funds is influenced by a number of factors, including proper liquidity and market timing. The high and guaranteed liquidity of sharia equity mutual funds allows investors to redeem shares or participation units at any time in accordance with the provisions made by each sharia mutual fund, making it easier for investors to manage their cash and mutual fund companies are required to buy back shares/participation units in order to very liquid even though the condition of stock movements affected by the COVID-19 pandemic has decreased, as well as the right market timing during the COVID pandemic has an impact on several stock movements that cause a sharp significant down trend, this is the right market timing to be able to own shares that are portfolioed in sharia equity mutual funds by investment managers, thereby encouraging the performance of income mutual funds. still sharia is much better in Indonesia during the covid pandemic. Purpose - investigate the impact of liquidity and market timing on sharia fixed-income mutual fund performance. Design/methodology/approach - The type of data used is quantitative data, and the data source is yearly financial reports by companies. Descriptive statistics and panel data regression were applied to analyze the data. Findings - For the years 2018-2019, this study found that the liquidity of sharia fixed income mutual funds registered with the Financial Services Authority (OJK) was negative and insignificant to the performance of mutual funds with a sample of 32 sharia fixed income mutual funds, but from 32 samples of mutual funds during the pandemic. found that market timing is positive and significantly improves mutual fund performance. Research limitations - This research is limited to observing the composition and combination of securities portfolio effects of shariah fixed income stock mutual funds, time horizon and the ability of investment managers to form a portfolio of shariah fixed income mutual funds that provide maximum returns for their investors. Originality/value - This research on Islamic income mutual funds is different from other research from the point of view of improving the performance of mutual fund companies, most of them are more intense and focus on improving the performance of conventional fixed income mutual funds that do not pay attention to the criteria for the combination of stock securities including sharia shares and instrument products. other Islamic investments. The researcher analyzes liquidity indicators, namely effects and total assets, where the assets managed by mutual fund companies are not fully compliant with shariah aspects, and are not fully shariah securities, and it is proven that liquidity has a negative and insignificant effect on mutual fund performance, as well as on market timing, market The timing is positive and significant because of the right momentum to have shariah fixed income mutual funds when their securities are at their lowest prices during the COVID-19 pandemic.