This thesis aims at doing a study on the feasibility of establishing  mutual fund in I. R. Iran. Such funds are a kind of financial institution, which accumulate the investor capital and invest it to various economic fields. To evaluate the proposed hypothesis, we gathered the required information through, surveys, questionnaires and documents. The proposed hypothesis are :

1 ) Having no specific law, has made the establishment of such in Iran so problematic

2 ) Shortage of experts in pricing the stocks of such funds and calculating their net asset value, and forming a fruitful and low-risky portfolio, failing to generate the required soft wares, has led to a delay in establishing such funds.

3 ) failing to outline an appropriate structure for financial and law affairs, productions, human resources and risk management for such funds has put obstacles in the way to establish mutual funds.

4 ) Establishing each kind of such funds is not against shi’it fiqh. The results of the study are the followings:

although the Iranian stock market law, legislated in 2005, has stressed on the necessity to established such institutions and enactment of some appropriate legislations in this regared, Iranian mercantile law sentences the establishment of them as “ not allowable”.

In the end, we also have discussed some issues, related to establishing mutual funds in Iran.

Key Words

Close end fund, Unit trust, Net asset value, Under writer, Open end fund