The Intricacy of Defining Investment Funds (A Comparative Study)

Abstract

Some of the judiciary may oppose naming 'investment funds' so, considering the name imprecise since it does not truly reflect the activity done by these funds, as they claim. The word investment implies that the funds truly and directly invest in savers' moneys in developmental industrial, agricultural, or real estate activities leading to net increase in the production assets, while these funds only utilize the money in creating and managing securities portfolios. It is suggested that these funds be named savings utilizing funds, being more precise in indicating the purpose of those funds than naming them investment funds. On judiciary and legislative levels, the name that was settled on was investment funds. We agree with avoiding the name saving funds because investment funds have proven its efficiency and ability to attract national and foreign capital which results in the increase on assets in addition to its ability to carry out direct investment.