Comparative Analysis of Sharia Mutual Fund Performance in Saudi Arabia, Malaysia and Indonesia in 2018-2020
Suci Aprilliani Utami, Adelia Puspa, Rida Rosida

Universitas Pendidikan Indonesia

Abstract

Sharia mutual funds are one of the most popular types of investment instruments in the Islamic capital market today. Sharia mutual funds have a market share of 5% or equivalent to USD 178 billion with a total of 745 institutions. Saudi Arabia occupies the first position with total assets of sharia mutual funds of USD 53 billion, then Malaysia occupies the third position with total assets of sharia mutual funds of USD 38 billion. Meanwhile, Indonesia occupies the sixth position with total assets of Islamic mutual funds of USD 3 billion. The purpose of this study is to analyze the comparison of the performance of Islamic mutual funds in Saudi Arabia, Malaysia, and Indonesia in 2018-2020. The method used in this research is comparative descriptive with quantitative approach. This study uses purposive sampling technique with a total sample of 69 sharia mutual fund products, including 15 money market sharia mutual fund products, 15 fixed income sharia mutual fund products, 21 stock sharia mutual fund products, and 18 mixed sharia mutual fund products. In addition, the performance of Islamic mutual funds is measured using the Sharpe ratio model. The results of the study show that Islamic money market and fixed income mutual funds in Indonesia are superior to Malaysia and Saudi Arabia. Meanwhile, share and mixed sharia mutual funds in Saudi Arabia are superior to Indonesia and Malaysia. Thus the performance generated by sharia mutual funds can be one of the considerations for investors in choosing the type of sharia mutual funds by adjusting the economic conditions of a country. In addition, investors can choose Islamic mutual fund products managed by investment managers based on the level of return and risk they have.

Keywords: Islamic capital market, performance of Islamic mutual funds, Sharpe ratio

Topic: Green and blue Islamic Finance