Azerbaijan, Baku, Sept. 15 /Trend /
Trend Analytical Center expert Leyla Abdullayeva
The Azerbaijani developing securities market requires establishing the country's investment funds. Investment funds are active tools in the stock market worldwide, including in developing countries.
There is a very high interest in creating investment funds in Azerbaijan, the Deputy Chairman of the State Securities Committee Ilgar Muradov said.
"Some prominent international organizations have already appealed to the State Committee to create investment funds in the country," Muradov said.
Muradov said that at present, the regulatory base has been formed in Azerbaijan. The investment funds' formation process is based on appeals.
Investment fund activity will expand supplies in the stock market by encouraging the introduction of new tools and increasing the volume of transactions. Members will receive better conditions.
After investment funds appear in the stock market, Azerbaijani citizens will receive additional risky and unfixed investment opportunities. But they entitle potential investors to obtain more profit compared to bank deposits. The investment fund is responsible for financial management, which it invests at its sole discretion.
People wishing to invest in investment funds can purchase fund securities. The amount with which the fund shares or certificates were purchased will be invested by the manager of the fund in stocks or company bonds, based on what the manager considers to be the most promising market areas. By investing in the investment fund, a depositor and other investors become owners of a part of a large portfolio.
According to world practice, the investment fund played an important role in stimulating and protecting investments. In this regard, the establishment of the investment fund in Azerbaijan will play a significant role in stimulating and thus increasing investment in the economy.
Investment funds operate as both private and public funds. U.S. practice has shown that if investment funds operate as private funds, they become more efficient.