Market timing in investment companies and mutual funds, evidence from Iran

This study attempted to examine the variation of the asset allocation and security selectivity as known market timing for funds, which are accepted in the Tehran Stock Exchange. We use parameters of Treynor and Mazuy model and its adjustment such as Ferruz et al, about management abilities. Regression analysis is used as similar to previous studies for testing research hypotheses. Results of this research showed that fund management doesn't obtain the excess return for stockholders and there is a negative relation between asset allocation and selectivity in the funds. Moreover, the paper identified investment companies and funds present a favorable picture of performance for future potential investment but couldn't obtain added value to investors.