Llesh Lleshaj
Alban Korbi
Faculty of Economy, University of Tirana, Albania
DOI: https://doi.org/10.31410/ITEMA.2018.541

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

Abstract

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.

Key words
Investment fund, Brownian motion simulation, VaR.
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