The Effect of Fundamental Variables of Mutual Funds on the Ability of the Manager to Select the Appropriate Stock and Accurate Market Timing

Abstract

Objective: The structure of mutual funds and, of course, other reasons cause the management of these funds to trade based on evaluation criteria. Unexpected cash flows allow managers to constantly maintain the balance of their portfolios to control liquidity. Investment fund managers must provide liquidity to investors; Therefore, they have to make their investment decisions to manage liquidity; The aim of this study was to investigate the effect of fundamental variables of investment funds on the manager's ability to properly select stocks and accurate market timing in investment funds listed on the Tehran Stock Exchange. Method: The research area was the investment funds listed on the Tehran Stock Exchange and the time period was between 2009 and 2019. In this study, the fundamental variables of mutual funds (Fund Expenditure Ratio, Portfolio Turnover Logarithm, Fund Cash, Mutual Fund Flow), the independent variable and the ability of the manager to properly select stocks and accurate market timing, were considered as dependent variables. The present study is in the category of applied research. If the classification of types of research is considered based on the nature and method, the method of the present research is descriptive in terms of nature and in terms of method is considered in the category of correlational research. In this study, the library method was used to collect data and information. Based on the systematic removal method, 86 boxes were selected as a statistical sample. Descriptive and inferential statistics have been used to describe and summarize the collected data. In order to analyze the data, first F-Leimer F-test, Hausman test and J-b test were used and then multivariate regression test was used to confirm and reject the research hypotheses (Eviews software). Results: The effect of fundamental variables of investment funds on the manager's ability to properly select stocks and accurate market timing among large and long-term investment funds different from small and long-term investment funds. It is short. The results obtained in this research are consistent with the documents mentioned in the theoretical framework of research and financial literature. Conclusion: As a general conclusion and considering the cases mentioned in the literature section of the research, it is concluded that the fundamental variables of mutual funds affect the manager's ability to properly select stocks and accurate timing of the market. These results can increase the understanding and knowledge of investors and researchers in the field of capital markets, and in light of this, it may be possible to identify other factors that can explain changes in the manager's ability to properly select stocks and accurate market timing.