Abstract
Mutual Fund is a credible investment opportunity for small investors who lack information, skills, or knowledge of investing in capital market. The study was aimed to know the effects of factors affecting the performance of Mutual Fund in Pakistan. The study investigated performance of 44 open ended Mutual Funds operating in Pakistan for the period from 2010 to 2014.The annual  penal data was collected from mutual fund annual reports and Mutual Fund Association of Pakistan. Fixed effect - Random effect OLS was used for the data analysis of this research. The study  found that the factors such as fund size, expense ratio, free management and asset turnover have positive impact on fund return have greater impact on fund return. And, factors like liquidity and load fee  are showing negative and insignificant impact on fund return. The research advises Fund managers to maintain a balanced amongst the factors so as to ensure maximization of its return, benefiting both; Mutual Fund managers and investors.
Keywords: Mutual Fund, open ended, penal data, fixed effect- random effect, Pakistan