Arab Journal of Administration المجلة العربية للإدارة


This research paper aims to examine the impact of obligatory policies on mutual funds returns. The research depends on data of Egyptian stock indicator case 30 and 29 open-ended mutual fund net asset value for the period 2001-2008.The methodology utilizes change percentage, arithmetic mean to calculate the returns of both stock exchange market and mutual funds. Then, standard deviation to measure risk for both market and mutual fund. Furthermore, simple correlation to test the relation between the return, performance and risk of mutual funds and the stock exchange market. Followed by, using Simplex method to test the impact of obligatory policies as constrain on mutual fund expected returns.It was found that there is a strong positive relation for returns, risks and performance between stock exchange market and mutual funds which indicate that the majority of mutual funds in Egypt apply the same policies in managing their portfolio, especially it was recognized that mutual funds managers manage more than one mutual fund up to eight. Also, it was found that the obligatory policies have a negative effect on mutual fund returns. It is recommended that Egyptian Financial Control Authority have to increase flexibility in managing mutual funds investments and take an action toward minimizing speculating behavior by apply taxation policies on capital gain in parallel. Besides this, reorganize the permission of managing more than one mutual fund by one manager