DEVELOPMENT OF INVESTMENT FUNDS IN THE REPUBLIC OF SERBIA

Abstract

The rapid development of the securities market laid the foundation for the development of investment funds, which were initially established in developed countries before later commencing operations in developing countries. The capital market and investment funds in the Republic of Serbia lag behind developed countries, so the impact of this sector on the development of the domestic economy is still not evident. The experiences of countries with developed financial market show that there is a decreasing market share for traditional intermediaries (such as banks) and as well growing trend in the representation of non-traditional intermediaries, primarily investment funds. However, in Central and Eastern European countries, the last two decades have been marked by increased interest from both experts and the scientific community in the operations of investment funds. Investment funds in the Republic of Serbia show potential after the Covid-19 pandemic, and the authors believe that their role in the domestic financial market is expected to improve in the future. In contemporary market economies, investment funds are rapidly evolving and becoming new, authentic financial intermediaries. Considering that investment funds represent long-term savings, more attention should be paid to raising public awareness and improving the level of financial literacy among citizens regarding the significance of investment funds for economic development in the domestic capital market. Considering mentioned, the first investment funds in the Republic of Serbia emerged only in 2007 and that they are not adequately represented in domestic literature, the authors aim to contribute to filling this gap with this work. In this context, the aim of the paper is to present the chronology of the development of investment funds (number, investment units, net asset value and investment structure) in the Republic of Serbia from 2007 to 2023.