| Return of investment in the future depends on nowaday act. Return of investment will reflect of investor’s risk. High returns on investment will have high risks and vice versa. Mutual funds available in the market are divided into four groups those are money market mutual fund , fixed income mutual fund, stock mutual fund and balanced mutual fund. Risk and return attached to that fund can be grouped as low, moderate and high risk and return. In this thesis, we research about balanced mutual fund that until the end Desember 2004 consisted 53 mutual funds. We research to separate 22 of them into two different groups. And then choose them which is best as an investment choice. In this research we find conclusions. Return investment in t period has correlation to return in t+1 period. Return, Sharpe, Treynor, and Jensen Alpha value in t period have no correlation to Return value in t+1 period. Mutual funds that have good similarity to invest are Jisawi Mix, Mahanusa Dana Kapital, , Schroder Panin Dana Terpadu, Schroder Panin Dana Prestasi, and Meesperson Finas Investa Pesona. We recommend if we have to make investment decision in mutual fund, we should choose fund(s) to invest Mahanusa Dana Kapital, and/or Meesperson Finas Investa Pesona because they have biggest average Return and Jensen Alpha value. |