Mutual funds development strategy in Lithuania
Abstract
The paper analyzes the problems of mutual funds industry development in Lithuania, giving the description of problem situation. Funds management is of the strategic importance for mutual funds industry. By allocating savings to productive investment the funds management industry is key for the overall functioning and development of the Lithuanian economy. Financial innovations, changes in investors' needs and preferences, and industry restructuring are transforming financial markets. In the mutual funds industry the main driver of change is product engineering. The paper presents the model of portfolio investment strategy selection and the research results of model application. Therefore, the presented model suggests the strategy of portfolio investment, seeking for maximal gain in the Lithuanian capital market according to the scheme of weekly portfolio rebalancing. The model has been applied on stocks of Vilnius Stock Exchange; the research results are presented in tables and illustrated in charts.