Investment Funds of Emerging Markets as Alternative Forms of Capital Investment in the Conditions of Low Interest Rates

Rubaj Piotr, Wazna Elzbieta
European Research Studies Journal, Volume XXIV, Issue 2B, 290-307, 2021
DOI: 10.35808/ersj/2234


Purpose: The present paper aims to analyze the Polish investment funds of emerging markets in 2015-2019 based on selected measures of investment effectiveness. The research problem formulated in this way is supposed to answer whether these funds are an attractive and secure form of investing capital in the conditions of meager interest rates offered by commercial banks. Design/Methodology/Approach: The study's methodology comprises a descriptive part, which deals with the typology of emerging markets, and an empirical part referring to the analysis of the economic effects of Polish investment funds active on these markets. The empirical part makes use of the data included in information prospectuses of the funds as well as in financial statements. The descriptive part conducts literature studies in the subject area under discussion, above all the non-serial literature, reports, and information from the websites of financial institutions. Findings: Meager reference rates of central banks do not make traditional and safe forms of investing the capital very attractive. Moreover, they do not even ensure the maintenance of the value of the deposited means. In this situation, it becomes necessary both for individual and institutional investors to search for alternative forms of multiplying the capital. Higher rates of return on capital can offer stock investments, including those realized through specialized investment funds. Practical implications: The added value resulting from the conducted studies confirms that financial investments on capital markers of emerging countries can be an excellent alternative to the traditional financial instruments characterized by a meager rate of return. Originality/Value: The originality and innovativeness of the present paper have two dimensions, namely the analytical one - consisting in the assessment of the new Polish market of investments funds, and the practical one - indicating new investment possibilities for individual and institutional investors.

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