This year started with the burden of a global financial crisis that changed the fundamental values of capitalism and walled the entire financial world. Predictions for 2009 don’t look very promising, while experts’ expectations are focusing rather on how Romanian economy will find the tools to overcome the economic downturn.
Monetary funds are expected to grow in volume
Mutual funds market depends directly upon the evolution of the stock market, which is expected to continue its bearish trend, at least in the first half of the year. However, money-market funds will have the most to gain, their up spiral being signaled since 2008.
“Investment fund market will keep developing in Romania, being stimulated by monetary market’s opportunities, which yield in high positive interests. Apart from the attractive yields, the money-market funds will grow in volume stimulated by the banks’ distribution efforts”, Mihail Ion(photo), manager of Raiffeisen Asset Management told Wall-Street.
In the midst of global crisis, where the financial system has been bogged down, we are wondering if the asset database of mutual funds will increase this year.
“In times of crisis marked by a thirst for liquidities, we will probably witness a massive cash withdrawal from mutual funds. Combined with broad stock market volatility, I think the share funds with large exposure and diversified funds will take the heaviest losses”, said Cosmin Brendea, manager of Prime Asset Management, of the funds launched last year in Romania.
However, Mihai Ion expects the stock market’s bullish trend to be restored starting second half of this year and the investors to return in share funds.
“Diversified and share funds will gain back their popularity once the stock markets starts to increase. Even if we don’t have a predictable future, the most likely scenario signals a stab
