1. Plekhanov Russian Academy of Economics The role of mutual investment funds in the Russian stock market development Olkhovitch Eugene

2. Plekhanov Russian Academy of Economics Stock Market A stock market is a combined behavior of thousands of people responding to information, misinformation and whim. Kenneth Chang. October is one of the most dangerous month for speculating on a stock market. Other dangerous months are July, January, September, April, November, March, May, June, December, August, February. Mark Twain. The only thing money can not buy is poverty. Here you should apply to the stock market. Robert Orben.

3. Plekhanov Russian Academy of Economics Russian Stock Market Overview 19982004 17 bil. US dollarsMarket Cap230 bil. US dollars 10 bil. US dollarsTrading Volume101.2 bil. US dollars

4. Plekhanov Russian Academy of Economics Problems of the Russian Stock Market 1.Legal base shortcomings; 2.Poor infrastructure; 3.Low transparency; 4.Low integration level into the global stock markets; 5.Insider trading; 6.Lack of long-term investment; 7.Speculative nature; 8.Small quantity of shares traded (both by free-float and by number of issuers); 9.Limited number of participants.

5. Plekhanov Russian Academy of Economics Mutual Investment Fund

6. Plekhanov Russian Academy of Economics Mutual Investment Funds Mutual investment Funds perfectly suits those people, who have no idea about financial markets, who are not able to make decisions or who are simply lazy. Helen Daglas Wiliamson

7. Plekhanov Russian Academy of Economics Mutual Investment Effects on the Stock Market 1.Mechanism of drawing additional monetary resources into the economy; 2.Mechanism of bringing long-term investments into the economy.

8. Plekhanov Russian Academy of Economics Worldwide Total Net Assets of Mutual Funds (millions of US. dollars, end of year) 199819992000200120022003 World9,343,27211,391,13811,871,06111,654,90411,324,13113,957,564 Americas Argentina6,9306,9907,4253,7511,0211,916 Brazil118,687117,758148,538148,18996,729171,596 Canada213,451269,825279,511267,863248,979338,369 MexicoN/A19,46818,48831,72330,75931,953 United States5,525,2096,846,3396,964,6676,974,9516,390,3607,414,084 Europe Czech Republic5561,4731,9901,7783,2974,083 Finland5,69510,31812,69812,93316,51629,967 France626,154656,132721,973713,378845,1471,148,446 Germany190,520237,312238,029213,662209,168276,319 Hungary1,4761,7251,9532,2603,9923,936 Poland5067621,5462,9705,4688,576 Russia29177 297372851 TurkeyN/A 6,00214,164 United Kingdom277,551375,199361,008316,702288,887396,523 Source: Investment Company Institute, USA

9. Plekhanov Russian Academy of Economics World Number of Mutual Funds (end of year) 199819992000200120022003 World50,83552,74651,69252,84954,11054,015 Americas Argentina229224226219211186 Brazil1,6011,7602,0972,4522,7552,805 Canada1,1301,3281,6271,8311,9561,887 MexicoN/A280305350364374 United States7,3147,7918,1558,3058,2448,126 Europe Czech Republic566270657658 Finland114176241275312329 France6,2746,5117,1447,6037,7737,902 Germany7938959871,0771,0921,050 Hungary668786899096 Poland38627794107112 Russia2827375157132 TurkeyN/A 242236 United Kingdom1,5761,6181,7661,7491,7871,692 Source: Investment Company Institute, USA

10. Plekhanov Russian Academy of Economics Thank you for attention!!!