Effects of Fund Attributes on Fund Return: An Analysis of Close-End Mutual Funds of Pakistan

Abstract

Mutual funds have become an attractive investment option particularly for small investors to diversify their portfolio. The aim of this study is to explore the determinants of close ended mutual funds return in Pakistan. For this purpose secondary data is used from 2007-2013. Multiple regression analysis is carried out to measure the determinants (fund size, liquidity, expense ratio and fund turnover) of fund return. The findings of the study revealed that expense ratio and fund turnover significantly influences the return of the fund. Moreover, fund size is positively related to fund return whereas expense ratio, fund turnover and liquidity are inversely related to fund return.