INVESTMENT FUNDS IN BOSNIA AND HERZEGOVINA AS A FUNCTION OF INCREASING INVESTMENT POTENTIAL

Abstract

This paper will discuss the investment funds and their impact on investment growth potential. In Bosnia and Herzegovina, investment funds are in the conception of development, especially the open ones that appeared in 2008. Arguments to invest in funds is explained through the ratio of their growth and that of the economy.Through the financial systems the economicic agents reach necessary financial funds needed to develop business, invest and pursue growth and development. The offer of shares of strategic companies on the stock market led to GDP growth, reduced unemployment and development of investment funds. As a measure of future development according to the fact that Bosnia and Herzegovina must reach a certain level of GDP growth to become interestingly area for the establishment of not only domestic but also foreign investment funds. Investment funds may affect the development of small and medium enterprises, as their founders, as majority or minority shareholder. Long-term financing of such enterprises facilitates
the implementation of. The importance of investment funds is particularly characteristic of developing countries that have a lack of financial resources for effective development. For BH high interest rates that result from risk investment and low credit rating are very characteristic of high interest rates that result from risk investment and low credit rating. Therefore, in this environment investment funds have found their place in the financing of further development. Generally, funds to encourage economic development, while simultaneously putting pressure on banks, represent additional competition
while the industry loans have decreased in the recession years. While the decrease in the loans industry recession years. Investing in open investment funds is at the same time an investment in industry which accordingly helps companies unable to obtain expensive bank loans.