Abstract:
Indonesian capital market players are still dominated by foreign investors. This will cause a high sensitivity of Indonesian
capital market toward foreign investors’ movement. Mutual fund is an alternative way to increase the amount of domestic
investors. Mutual fund is managed by a sophisticated fund manager. Sophisticated fund manager has much more information
and takes the diversification of portfolio successfully. Sophisticated fund manager is always ready to invest much funds in
various investment instruments. Sophisticated fund managers will not conduct any bias in their investment. As a
sophisticated fund manager, their investing decision must be rational and accountable.
