Srpski
Home
FacebookTwitterGoogle Bookmarks

Latest issue

Management 81
ISSN 1820-0222
ISSN 2406-0658 (Online)
Mutual funds as a long-term financing source of the enterprise

 

Mutual funds are nonbanking financial institutions that collect savings of individual investors in order to invest capital on financial market.

Capital market in Serbia is underdeveloped and shallow, characterised by a chronical shortage of quality long-term capital sources, and there are only few enterprises listed on the Stock Exchange A list attractive to mutual funds. The offer of quality shares, known as “blue chips“, is rather poor, however great demand for them is.

In such circumstances companies are often faced with the problem of how to raise capital in case they do not have enough of their own. National companies still opt in favour of long-term loans (often under extremely unfavourable conditions), although the capital raising through IPO (initial public offer) and listing on the stock exchange would be a much more profitable solution in the long run. Banks and international monetary institutions are still the main creditors in Serbia.

The mutual funds make decisions on investing into a company on the basis of financial statements, plans and projections, rather than on the basis of the prospectus. Companies are advised to make efforts to atract mutual funds which are considered to be long-term capital sources and the best way to do that is doing business transparently and constantly improving business results.This would contribute to reducing costs of company financing, improving the current market position, as well as capturing new market segments, improving the quality of the products and services, and financing new development projects. It is important that there be a mutual interest shared by both the management of the fund and that of the company, and this is, above all, the profit.

 

mr Jelena Ćirić, mr Slobodan Morača, msc Danijela Gračanin

 

Add comment

Security code
Refresh

News

Issue 81
Wednesday, 01 March 2017
Issue number81, of journal for theory and practice "Management", is published and it can be downloaded from 'Review of issues' section. It has been published only in English version.
Issue 80
Wednesday, 23 November 2016
Issue number 80, of journal for theory and practice "Management", is published and it can be downloaded from 'Review of issues' section.
Issue 79
Friday, 02 September 2016
Issue number 79, of journal for theory and practice "Management", is published. Articles from this issue can be downloaded from 'Review of issues' section.
Issue 78
Friday, 20 May 2016
Issue number 78, of journal for theory and practice "Management", is published. Articles from this issue can be downloaded from 'Review of issues' section.
Issue 77
Wednesday, 24 February 2016
Issue number 77, of journal for theory and practice "Management", is published. Articles from this issue can be downloaded from 'Review of issues' section.
Copyright © 2011 - Management - Časopis za teoriju i praksu menadžmenta