THE EFFECT OF BANK INDONESIA CERTIFICATES, COMPOSITE STOCK PRICE INDEX AND EXCHANGE RATE ON MUTUAL FUND PERFORMANCE FOR PERIOD OF 2012-2014

The study aims to analyze the effect of Bank Indonesia (SBI) certificates composite stock price index (JCI), and exchange rate partially and simultaneously on the Performance of 10 mutual funds of Dana Investment Management company. The study adopted quantitative approach by using causal survey method. Secondary data were collected from data published by Bank Indonesia, the Indonesia Stock Exchange and Danareksa Investment Management company (Investment Manager) during the period of 2012 - 2014. Path analysis technique was employed to analyse the data. The research findings have shown that: SBI has a direct significant effect on JCI, SBI has a direct significant effect on exchange rate, JCI has a direct significant effect on Rupiah exchange rate. JCI and exchange rate do not have a direct effect on mutual fund performance, whereas SBI has a direct effect on mutual fund performance. SBI, JCI and exchange rate simultaneously affect directly on the performance of the fund. Mutual funds, stocks mixture, money market and fixed income are still stimulating and have potential to gain return as well as they have somewhat good performance. It is concluded that to determine interesting products, it must be in line with its objective and investor's ability to take risks. Thus, specific strategy is required for market fluctuation as to make investors discipline and assist them to invest.