Recommendations

 Results reveals that expense ratio is negatively related to conventional funds performance
which indicates inefficiency of mutual funds management to generate revenues or returns
against the expenses incurred. Therefore, it is recommended to the management of mutual
fund companies to reduce their expenses so that these expenses should not exceed the returns
thereby giving negative performance. Moreover, the companies can change their earning
portfolio which may diversify their returns coming form different sources where at same time
managing to reduce the expenses.
Contrary to conventional funds, Islamic funds are are able to generate returns against expenses
incurred which indicates that management of Islamic mutual funds is efficient in utilizing
generating revenues by managing their expenses. So it is recommend to Islamic funds to incur
more in expenses to generate revenues against them which will improve returns thereby
enhancing performance.
 It is recommended to mutual funds to maintain higher liquidity levels as indicated by positive
relationship because if cash balance is increased this will prevent mutual funds form quick sale
its asset which will enhance performance. But the level of cash holdings should be maintained in
a such ways that performance should not be negatively effected.
 Islamic mutual funds needs to change their investment decisions because their asset turnover is
insignificant indicating that Islamic mutual funds are not efficient in utilizing their asset to
generate revenues. Therefore, it is recommended to IMF to change their earning policies so as
to gain significant affect of utilizing their resources.
 The mutual fund companies fun size is insignificant which indicates that size of mutual funds is
not appropriate so as to effect its performance. Therefore, the funds needed to enhance their
there size of asset portfolio so that their performance is enhanced.