As a country with the largest Muslim majority population in the world, Indonesia is the most potential target market for sharia-based products. The increasing public enthusiasm for various sharia investment products indicates this. There are two aims of this study. The first aim is to evaluate the performance of sharia equity funds in Indonesia by employing risk-adjusted returns as the measurement and its investment manager’s competence. The second aim is to provide empirical evidence of whether fund characteristics such as fund size, expense ratio, and portfolio turnover ratio, together with fund manager skills such as stock selection skills and market timing ability, influence fund performance. This study used a sample of 15 sharia equity funds in Indonesia with an observation period from 2017-2021. Secondary data on fund characteristics are available on the annual financial report contained in the renewal prospectus of each sample. Meanwhile, secondary data of portfolio return, market return, and risk-free rate for measuring fund manager skills and fund performance can be obtained from several data provider websites. The data analysis technique used in this study is descriptive analysis and panel data multiple regression analysis. This study provides additional empirical evidence in the field of sharia capital market investment that is beneficial for future researchers, and also useful for sharia-compliant investors as another essential reference regarding factors that can significantly influence sharia equity fund performance.