NECESSITY AND FUTURE PERSPECTIVES FOR THE INVESTMENT FUNDS DEVELOPMENT IN THE REPUBLIC OF NORTH MACEDONIA.

The capital market development in a national economy has an important influence on its economic growth and development and how successfully it will follow the economic trends on a world level. Especially important segment for encouraging the capital market development is the emergence of the investment funds. In the developed market systems, the investment funds are dominant by their participation in the financial system due to the risk diversification, the working transparency, the liquidity and the possibility to invest smaller amount of funds. In the developing countries, as it is a case with Republic of North Macedonia, the investment funds have existed for several years and they are at the beginning of their development. The legal framework establishment and the possibility for forming these kinds of collective investors which will enrich the financial market, and which has already been a world practice, have not brought significant changes in the financial system. The insufficient maturity of the capital market, the weak economic base, the limited competition and the closed market towards other countries, as well the fear of investing in something unknown significantly made the conditions for progress difficult. This research aim is through method of analysis to determine the real situation and the limiting factors, and the possibilities and the necessity for the investment funds development in RN Macedonia towards the economic development advancement. [ABSTRACT FROM AUTHOR]