—This research aims to assess the performance of
equity fund in Indonesia, Islamic and Conventional, whether
they can outperform the market. The samples used in this
research are 36 equity funds which have been established prior
to January 2008. The performance measurement methods are
rating based on return, Sharpe index, Modified Snail Trail,
and Morningstar. This research finds that the performance of
Islamic equity fund does not differ significantly compared to
market and conventional equity fund based on return and
Sharpe Index. The finding in high rating portfolio is quite
obvious, high return and Sharpe Index rating portfolios
produce the highest expected return of 1.09% in 5 years.
Meanwhile, modified snail trail method shows 1% expected
return, and the lastly, Morningstar rating indicates 0.64%
return. These portfolios, except for Morningstar rating,
outperform to benchmark portfolios namely, equally weighted
portfolio and minimizing risk portfolio in all of three categories.
—Conventional equity fund, islamic equity fund,
modified snail trail, morningstar rating, sharpe index.
The authors Are with the School of Business and Management, Bandung
Institute of Technology, Jl. Ganesha 10, Bandung, 40132, West Java,
Indonesia (e-mail: email@example.com, firstname.lastname@example.org,
Cite:A. F. Hartono, S. Soekarno, and S. M. Damayanti, "Islamic and Conventional Equity Fund Rating
Performance withalReturn, Sharpe, Modified Snail Trail,
and Morningstar Rating Groundwork," Journal of Economics, Business and Management vol. 2, no. 1, pp. 74-80, 2014.