The Dilution Impact of Daily Fund Flows on Mutual Funds in Iran<br/>

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The Dilution Impact of Daily Fund Flows on Mutual Funds in Iran

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 53183 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Talebian, Masoud; Heidari, Mahdi
Abstract:
In mutual funds, due to the liquidity advantage, investors can trade their assets without paying cost. Flows dilute the effect of returns because funds cannot be invested immediately in high-risk assets or the fund manager cannot implement the optimal strategy. The effect of diluting cash flows can affect the fund's future performance and reduce shareholder returns. The effect of diluting the fund of flows in Iran is a very small amount of 0.08% per year, which is different from zero at a significant level of 5%, but economically this number is small and insignificant. Of course, the policies of investment funds and the pricing model of the value of the fund's assets can affect it and affect the future performance of the fund
Keywords:
Mutual Fund ; Trade ; Index ; Net Asset Value (NAV) ; Liquidity ; Dilution ; Fund Performance ; Fund Turnover ; Stock Return

No TOC