2nd International Scientific Conference on Recent Advances in Information Technology, Tourism, Economics, Management and Agriculture – ITEMA 2018 – Graz, Austria, November 8, 2018, CONFERENCE PROCEEDINGS published by the Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-13-4
Investment funds are financial institutions that make it possible for investors (people or businesses) to invest in their savings (or profits). The creation of investment funds is a phenomenon of the development of the financial markets of the 20th century, and nowadays. The greater the development of these funds, the more developed it is the capital market of a country. In this study we have analyzed the investment funds in Albania, represented by Raiffeisen Invest Euro. The Monte Carlo simulations of Brownian motion were used to forecast the risk return of this fund. The stochastic process techniques and the VaR model are applied to each finding of the study. Investment funds in Albania, as a new investment alternative, are not generating attractive returns for different investors. In addition to the fact that investment funds are in the start-up phase it results that their quotes have a high risk and low return. This indicates the lack of diversification and the high operating costs of the fund.
 Bergstresser, D., and J. Poterba (2002). Do After-Tax Returns Affect Mutual Fund Inflows? Journal of Financial Economics 63, 381–414.
 Bernstein Sh., Lerner J., Schoar A. (2009). The Investment Strategies of Sovereign Wealth Funds. Harvard Business School, Working paper 09-112
 Boudoukh J., Richardson M., Stantonand R., Whitelaw R. (2004). Valuing Mutual Fund Companies, University of California: Fisher Center Working Papers
 Boudoukh, J., P. McAllister, M. Richardson and R. Whitelaw (2000). The Valuation and Hedging of Deferred Commission Asset Backed Securities, working paper, New York University.
 Chevalier, J., and G. Ellison (1997), Risk Taking by Mutual Funds as a Response to Incentives, Journal of Political Economy 105, 1167–1200.
 EFAMA (2018). Trends in the European Investment Fund Industry in the First Quarter of 2018, No. 73
 Engström S. (2004). Investment Strategies, Fund Performance and Portfolio Characteristics, SSE/EFI Working Paper Series in Economics and Finance, No. 554
 Goetzmann, W., J. Ingersoll, and S. Ross (2003). High Water Marks, and Hedge Fund Management Contracts, Journal of Finance.
 Halland H., Nowl M., Tordo S., Jacob J. Kloper-Owens (2016). Strategic Investment Funds: Opportunities and Challenges, World Bank Group, Finance and Markets Global Practice Group, Policy Research Working Paper 7851
 Kraemer-Eis H., Schillo M. (2011). Business Angels in Germany: EIF’s initiative to support the non-institutional financing market, European Investment Fund, Working paper.
 Learn L. (2016). “Introduction to Investment Funds”, Deloitte Belgium
 Lobão J., Cruz Gomes S. (2015). Performance and characteristics of mutual funds: evidence from the Portuguese market, Revista de Gestão, Finanças e Contabilidade, ISSN 2238-5320, UNEB, Salvador, v. 5, n. 4, p. 125- 148.
 Raiffeisen INVEST (2018). Raport Muaji Gusht 2018
 Sirri, E., and P. Tufano (1998). Costly Search and Mutual Fund Flows, Journal of Finance 53, 1589–1622.
 U.S. Securities and Exchange Commission (2016). Mutual Funds and ETFS A Guide for Investors, Office of Investor Education and Advocacy 100 F Street, NE Washington, DC 20549-0213
 Wiener Z. (1998). “Value-at-Risk (VaR)” Mathematics in Education and Research, Vol. 7, pp. 39–45.