A proposal for the establishment of investment funds

2/9/2016 0:00

BAGHDAD Farah pumice
suggested economist establishment of investment funds for its role in financing economic projects and programs to support the shift towards the private sector as well as expand the ownership base in the general business sector. Expert Adel Abu loaf saw that these funds contribute to the revitalization of the financial market by attracting small investors to invest in the stock, by providing the necessary legal legislation to pave the way for these funds to take an active role in increasing the volume of investments available.

He pointed out that it represents the financial instruments and investment vessels have an impact in attracting savings and investment promotion, noting that some banks and financial institutions have to use this type of fund in the investment fields for the development of its business and its activities so that became her role involves entering into an investment operations directly in different areas.

Due origination funds as a result of the emergence of investment firms in the nineteenth century in the Netherlands, investment, and moved to France and then to Britain, also appeared in the United States for the first time at the end of the thirties of the last century, also pursued some Arab countries, this type of investment such as Saudi Arabia, Egypt, the United Arab Emirates, and other .

on the other hand, Abu loaf believes that these funds contribute to rationalize the investment of funds of citizens operations inside and outside the country, and supports confidence in the capital market, as it provides services for the two categories of investors, the category has the capital and can hardly administration alone, another group representing owners of small savings who do not have sufficient capital to enter the relatively large guaranteed investments with less risk.

Abu loaf He explained that investment funds are providing safety element for the investor, through the offer of information and the support of analyzes and studies of the situation of companies in the market, and achieve flexibility and alignment between the interests of investors, allowing the investor to convert its investments from the fund to another, noting that it is different from investment banks in fact the purpose of the banks carry out mediation between the issuers of securities and investors president.