Implementation of Magic Formula and Acquirer’s Multiple Stock Investment Strategy in The Indonesia Stock Exchange

The Indonesia Capital Market has experienced a significant increase in investors from 2019 until now. the number of new Indonesian capital market is dominated by people under 30 years who prefer to invest stocks and mutual funds. This does not follow high financial literacy. Research regarding literacy investment return showed that affects return. Therefore, Indonesia’s will most likely experience losses due their lack Even though there are equity funds for novice stock help them minimize error they would make if themselves, cannot choose randomly since beat benchmark. study proposed using Magic Formula Acquirer’s Multiple as an strategy Indonesia. Both generated average annual greater than Equity Funds listed 2016 with 26,24% 26,32% annually. Sharpe ratio both methods also higher market, where 0,930 annually, while 1,038. acquirer’s recommended because it outperforms terms actual returns risk-adjusted returns.