The Effect of Outside Monitoring on Relation of Asset Turnover Ratio and Mutual Funds Performance

Fund performance is affected by many features. This research studies the effect of outside monitoring and asset turnover ratio on the performance of the mutual funds. Because of high expenses of outside monitoring, only institutional owners have enough motivation to use it in order to achieve more benefit. Our study draws from Tehran stock exchange database that provides the monthly reports for all Tehran mutual funds for the period of Oct -2012 To 22- Sep – 2014. The results indicate that there is a revers and meaningful relationship between assetturnover ratio in mutual fund and the performance of them. Also there is a direct and meaningful relationship between outside monitoring of mutual fund and the performance of them and there is no meaningful relationship between outside monitoring and relation of asset turnover ratio and the performance of the mutual funds.