Inflation and Exchange Rates and Fixed-Income Mutual Fund Performance

This study aims to prove the effect of the inflation level and the IDR/USD exchange rate on Fixed-Income Mutual Fund Performance (FIMFP), organized by BRI Investment Management.The population and the samples are the same, i.e., nine mutual fund products with a Net Asset Value (NAV) between 2017 and 2021.Furthermore, NAV becomes the indicator for calculating the total return, reflecting the performance.Moreover, this study utilizes a multiple regression model to analyze the data.As a result, this study concludes that the inflation level negatively influences this FIMFP.The weakness of the IDR/USD exchange rate decreases this FIMFP.Practically, the candidate of individual investors intending to buy fixedincome mutual funds must wait for the inflation reduction to return its Net Asset Value (NAV).For IDR/USD, the investors should wait for the IDR/USD foreign exchange appreciation to get a positive NAV change.