Abstract:
Mutual funds are increasingly being chosen as an investment vehicle in Pakistan by those who
lack the knowledge necessary to effectively manage their wealth and minimize associated tax
obligations. Businesses purchase mutual funds to lower both their corporate and individual tax
obligations. Investors purchase mutual funds to preserve their money's value against inflation
and receive tax benefits. Mutual funds are essential to a nation's economic growth. Its running
engagement is seen from the fixed income's predominant position as well as the overall
monetary marketplaces. By actively participating in the stock market and promoting stability,
mutual funds are a source of substantial funds through consistent consumption of floating
stocks. In this study, the data is collected from 19 Sharia Compliant Equity (Absolute Return)
Mutual Funds. The period is from 2016-2021. The data is collected from MUFAP (Mutual
Funds Association ofPakistan) and the Fund managers’ reports from the Fund’s website. This
study aims to examine the market timing of Sharia-based mutual funds in Pakistan using the
multi-factor model to see which factors influence the performance ofFund manager and hence
the overall fund. The regression results show that the Fund managers do not possess the ability
ofMarket timing for Shariah complaint mutual funds in Pakistan.
