A study on how managers of mutual funds invest in Iran (With an approach based on technical & fundamental analysis and Modern Portfolio Theory)

Subject Areas : Journal of Investment Knowledge

Mohammadreza Nikbakht ¹ , Yasser Kargari ² , Mahtab Davarzadeh ³

1 - Associate Professor of Accounting, Faculty of Management, Tehran University
2 - Graduate student at Financial Management Tehran University
3 - Master of Economic Sciences

Received: 2013-09-11 Accepted : 2014-01-25 Published : 2014-01-25

Keywords: Mutual Funds, Investment managers of mutual , Technical Analysis, Fundamental analysis, Modern Portfolio Theory, Forecasting,

Abstract :

This study (for the first time) examined the way investment managers of mutual funds invest, by using questionnaire method. Respondents to the questionnaire are investment managers of mutual funds in Iran. The investment managers are asked to determine the use of each of methods such as technical & fundamental analysis, Modern Portfolio Theory, bulletins, confidential information and market rumors, for market forecasting and selecting assets properly and timely. The research statistic population includes investment managers of active mutual funds in Iran. Questionnaires were sent to all of them, and 40 percent of the questionnaires were returned. The findings of this study show that investment managers always pay most of their attention to fundamental analyses and then published bulletins; they rarely use technical analysis indicators (especially in the long term) and Modern Portfolio Theory (especially in the short term). Also investment managers are reluctant to use confidential information and market rumors in any time intervals.