MUTUAL FUNDS - AN ALTERNATIVE WAY OF INVESTING

Worldwide mutual funds have a long history, but in Republic Macedonia are a relatively new financial instrument. The general public has insufficient information about mutual funds, they don’t know about their opportunities, but on the contrary, a big number of citizens have uncertainty about investing in mutual funds.Mutual funds are financial intermediaries that bind the money from many investors and then invest in securities with the help of professional managers who manage these funds.The roots of the mutual funds originate from the XVII century, when the UK and the Netherlands begin with the establishment of such funds. It is thought that the first fund was established in 1774 year by the Dutch merchant Adriaan van Ketwich. He pools money from a number of subscribers to form an investment trust.From then until the 90s of the twentieth century, it is noted gradual development of mutual funds worldwide. Normally in this process, developed countries led by the USA are countries where are mostly mutual funds, counting as the number of funds and the size of funds. For increase development lately big importance have development of law, regulation and supervision of mutual funds in all countries. Also, very important for the development of mutual funds are:The level of savings - If the state has a large middle class that has enough savings, the possibility of developing mutual fund is bigger.Policymakers - if a country's mutual funds are already present, policymakers in that country should recognize the influence of the whole economy, and to take measures that will enable the continuation and improvement of the impact of mutual funds.Flexibility in mutual funds - if the legal framework does not enable innovative fund structures, mutual funds will not develop with appropriate dynamic.