IDEAS home Printed from https://ideas.repec.org/a/ids/ijmefi/v11y2018i3p243-250.html
   My bibliography  Save this article

Asset allocation strategy to create superior portfolio from equity mutual funds

Author

Listed:
  • Sylviana Maya Damayanti
  • Isrochmani Murtaqi
  • Rudy Bekti
  • Anggoro Budi Nugroho

Abstract

There are many factors that cause an investor's success or failure in investing. One of the most decisive factors is the strategy to allocate investment assets. Therefore, investors need to allocate his or her assets such that an optimal return is achieved. This study discusses three strategies of asset allocation, namely buy and hold, instalment plan, and rebalancing. Three rebalancing processes are applied; quarterly, semi-annually and annually. Thirty active equity mutual funds from 2008 to 2014 have been used as research sample to calculate the superior portfolio. This study uses the Sharpe ratio to calculate portfolio return. The research result shows that strategic asset allocation with rebalancing strategy is considered the best strategy to be applied by investors. This finding can be used by investors as reference to invest in equity mutual funds to enhance returns.

Suggested Citation

  • Sylviana Maya Damayanti & Isrochmani Murtaqi & Rudy Bekti & Anggoro Budi Nugroho, 2018. "Asset allocation strategy to create superior portfolio from equity mutual funds," International Journal of Monetary Economics and Finance, Inderscience Enterprises Ltd, vol. 11(3), pages 243-250.
    • Handle: RePEc:ids:ijmefi:v:11:y:2018:i:3:p:243-250
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=93791
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijmefi:v:11:y:2018:i:3:p:243-250. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=218 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.