Effect of Consumer Confidence Index, Interest Rate, Stock Market Composite Index, and Inflation on the Net Asset Value of Indonesian Mutual Funds
Abstract
The growth of the mutual fund industry will continue to grow positively in line with the condition of the national economy, which is starting to recover from the crisis caused by the pandemic. It is essential to study the factors that influence this phenomenal growth to carry out risk mitigation. This research focuses on the factors that affect the NAV fluctuation by considering macroeconomic dimensions such as the consumer confidence index, interest rates, the stock market composite indexes, and inflation as independent variables. The study uses monthly time series data with the period from January 2013 to December 2020. The VAR model performed in the study proved that only the Composite Stock Price Index variable in the previous month significantly affects the Net Asset Value prices in the short- term. The impulse response function also confirms a strong relationship. The Composite Stock Price Index can influence the fluctuations to the Net Asset Value of Indonesia mutual funds. The composite stock price index can be used as a particular consideration when assessing the Indonesian mutual funds.
Keywords: Mutual Funds; Consumer Confidence Index; Interest rate; stock market composite indexes, mutual funds
DOI: 10.7176/EJBM/13-21-01
Publication date: November 30th 2021
![Download the IISTE publication guideline!](https://www.iiste.org/sub/iiste_footer_journal.jpg)
To list your conference here. Please contact the administrator of this platform.
Paper submission email: EJBM@iiste.org
ISSN (Paper)2222-1905 ISSN (Online)2222-2839
Please add our address "contact@iiste.org" into your email contact list.
This journal follows ISO 9001 management standard and licensed under a Creative Commons Attribution 3.0 License.
Copyright © www.iiste.org