Investigating the relationship between funds flow and mutual fund performance growth in Iran
Ali Tabakh, Ali Asghar lotfi, Roghaye Talebi
Abstract: Free cash flow is important in that it allows managers to search for opportunities that can increase shareholder value. Without having cash, development of new products, business achievements, paying cash dividends to shareholders and debt reduction are not possible. Accordingly, this article aims to investigate the relationship between funds flow and investment funds performance growth in Iran. To this end, 25 active investment funds in Iran were selected as the studied sample. To examine the relationships, panel data method of econometric models has been used. The results of this research indicate that there is a significant relationship between funds flow and fund performance growth. Also, correlation of funds flow with fund performance growth in funds with high cash asset is stronger than other funds.