Appraising the Effect of Internal and External Organization Factors on Investment Mutual Fundsʹʹ Return In Iran

One of the main functionalities of capital market is to improve liquidity in the market which provides security for the investors. Mutual funds are modern financial institutions which are designed with the aim of collecting funds from investors and devote them to buy a variety of securities in order to mitigate investment risks, exploit the economies of scale and finally create a reasonable return for investors. Regarding effective role of these funds, the goal of this research is presenting a model to review the main and important factors of internal and external organizational variables on funds return. In order to scrutinize the effect of variables of research on fundsʹ return, the Fama-MacBeth multilateral regression model was exerted. We gathered data from 13 authorized mutual funds during a 65 week period or 16 months. Results denote that there is a meaningful and positive correlation between, internal organization factors of funds’ ex-fluctuations of returns, funds’ last periods’ return, and also external organization factors of funds’ age, funds’ assets turnover rate and the funds’ acquired return. The evidences also imply that there isn’t any positive and meaningful correlation between internal organization factor of assets’ under funds managers’ control, and external organization factor rate of injection of new money to funds and the funds’ acquired return