Evaluation of investment fund activities in the Baltic States: theoretical and methodological aspects

Abstract

The article presents the aspects of the researched topic, the analysis of the activity of investment funds in the Baltic countries, the results of the methods of the relevant options. The author aims, based on the systematic and comparative analysis of scientific literature, the analysis and synthesis of statistical data, to prepare an appropriate methodology for the study of the activity of investment funds in the Baltic States and to analyze, evaluate and compare the activity of investment funds in the Baltic States according to it. In order to carry out an overview of IF activities, a systematic and comparative analysis of the literature is carried out, and an analysis of statistical data is carried out. Indicators such as the history of the subject’s activity, unit value, market size are interpreted. The selected research period is 2017–2021 (5-year time period). IFs operating on the stock exchanges of the Baltic countries – Lithuania, Latvia and Estonia – are being investigated. 10 stock funds (3 of them from Lithuania, 7 from Latvia), 11 bond funds (1 from Lithuania, 10 from Latvia) and 2 funds of funds (both from Latvia) were selected for empirical research. The article describes the TOPSIS method of multi-criteria evaluation, which evaluates various types of funds (equity funds, bond funds, funds of funds) operating in different Baltic countries (Lithuania and Latvia, Estonia did not meet any of the criteria), will calculate and compare various IF performance indicators – profitability, risk and management effectiveness. A set of relevant methods for checking profitability for the beginning investor has been compiled.