engleski

AHP based model for decisions on open-end investment funds

The investment fund industry is going through some big changes which are direct consequence of world crisis started in 2007. The investment funds are one of the most important institutional investors on the financial market who via public invitation assemble financial resources and using a risk management technique – diversification - invest in different types of securities (stocks, bonds, options, money markets securities). In this paper, authors give an analysis of investment funds, particularly open - end investment funds in the crisis surrounding in Croatia. The focus of the paper is on analysis four different types of open – end investment funds (Equity funds, Bond funds, Balanced funds, Money market funds) in Croatia using the quantitative (statistical measures), qualitative analysis and multi-criteria decision making method called the AHP (Analytic Hierarchy Process). At this moment (May 2009) there are 128 open - end investment funds on the Croatian capital market. Each type of open - end investment funds have different characteristic and bring different level of benefits and risks. All of the known and recognize characteristic are used for a complete analysis of position and evaluation of investment funds. The results of quantitative analysis served for comparative analysis in the period of 2000 to April 2009 between different type of open - end investment funds and for a final conclusion. The results of qualitative analysis served as input in multi-criteria decision model (AHP) which we have developed with open – end investment funds evaluation purpose. Data needed for the AHP model formulation were collected from the regulatory institution on Croatian capital market - Croatian Financial Services Supervisory Agency (Cro. HANFA) and analyzed using different statistic methods. Applying developed AHP model, investors could evaluate open – end investment funds according to qualitative and quantitative criteria and choose the best option based on their judgments. The developed AHP model will be presented in the article and the example of evaluation of the model.

Fund industry; Open-end funds; Decision making; AHP

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