Factors affecting the efficiency of joint investment funds in Iran's economy

Abstract

Joint investment funds, as one of the most vital non-banking financial intermediaries, are responsible for capital transfer from resource owners (society members) to consumers (manufacturing and service companies and others). In Iran, for the first time, based on the Securities Market Law, approved in 2005, joint investment funds were expected, and stock investment funds entered the capital market from the beginning of 2017. The purpose of this research was to investigate the influencing factors on the returns of stock investment funds through the analysis of the history of these funds' performances in Iran's economy. For this purpose, 136 joint funds active in the capital market were examined. Data analysis has been done with a pooled structure (unbalanced panel) and with a fixed effects regression model using the ordinary least squares (OLS) method. The results of this research confirm the existence of a significant linear relationship between fund returns and variables such as fund life, deviation from the average, ownership of all real investors, and inflation in the previous period, and market index in the previous period. Among these, the life of the fund and inflation has a negative effect on the efficiency of the fund and other variables have a positive effect.

Keywords

• joint investment fund
• capital market
• investment
• efficiency
• iran