Analysis of the performance of investment funds in Serbia during times of uncertainty

Abstract

The level of development achieved in the financial market is a fundamental indicator of the overall development of the national economy. Investment funds represent another alternative for small investors to place their funds and thereby attempt to preserve the value of their assets. However, the question remains whether this investment strategy is effective in an underdeveloped capital market. The aim of this paper is to analyze the performance of investment funds in Serbia during a period of significant global uncertainty and instability, characterized by high inflation rates and geopolitical tensions. The research focuses on the operations of investment funds in Serbia from the beginning of 2017 to the end of 2022. The findings indicate a negative trend in the performance of investment funds, highlighting the challenges in fully utilizing their potential in Serbia, a transitioning economy, unlike their role in more developed countries.