Seven efficiency analysis based on the BCC method on Sharia equity mutual funds

Ghazian Prasetyo Adli, Ari Prasetyo

Research output: Contribution to journalArticlepeer-review


Background: The decline in conventional mutual fund performance is an opportunity for Islamic mutual funds to grow. Especially in the last few decades, there has been a growing trend in the Muslim world to try to apply Islamic (sharia) law at every step in life, including investment activities. Of course, this is in accordance with Muslim encouragement to always be involved in business activities and economic prosperity. Aim: The purpose of this research is to determine Islamic equity mutual funds' efficiency level using DEA's BCC method as well as to discover any differences of the efficiency among sharia equity mutual funds. Method: The research method used in this study is comparative quantitative. There are nine Islamic equity mutual funds used in this research which are then the assessment of efficiency conducted using data envelopment analysis. Result: The result of the efficiency analysis showed that three Islamic equity mutual funds, which are BNP Paribas Pesona Syariah, Danareksa Indeks Syariah and Manulife Syariah Sektoral Amanah, happened to be efficient relatively to other Islamic equity mutual funds. Finally, the results from the Kruskal-Wallis test pointed out that there is a difference between the efficiency of Islamic equity mutual funds. Conclusion: From the results it can be concluded that Mandiri Investa Atraktif Syariah is the most inefficient mutual fund relative to other mutual funds. Meanwhile, there are three mutual funds that are most efficient relative to other mutual funds with the same efficiency value every year, i.e. BNP Paribas Pesona Syariah, Danareksa Indeks Syariah, and Manulife Syariah Sektoral Amanah.

Original languageEnglish
Pages (from-to)196-209
Number of pages14
JournalInternational Journal of Innovation, Creativity and Change
Issue number9
Publication statusPublished - 2020


  • BCC
  • Efficiency Analysis
  • Sharia Equity Mutual Fund


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