Mutual Funds and Their Reflection on Some Indicators of Financial Markets

Study of Experience of The Kingdom of Saudi Arabia and The Possibility of its Application in Iraq For the period 2000 – 2017

A Thesis Submitted To the Board of the College of Management and Economics, Which is Part of the Requirements For Obtaining a Master’s Degree in Finance and Banking

BY

Jihad F. Jihad Al-jleihaoa

Supervised By

Asst.Prof.DR. Kamal K. Jawad Al-Shammari

Abstract

Mutual funds are one of the most important financial innovations known worldwide, By providing the opportunity to savers and small investors who do not have sufficient financial resources or have not enough experience or time to enter the security market , The funds put the so-called investment documents to investors in return for investment of this money in various investment portfolios in the financial market.   The study started with a major problem: (How mutual funds will contribute the performance of financial market indices), which included a set of sub-questions, intellectual and applied, aimed at theoretical framing of the study variables, Because of the growing need for joint investment funds that allow Iraqi savers and investors to invest money in funds, which is the starting point for dealing in securities within the financial market.

The importance of research is to show the role that mutual funds can play in activating the security market and because of their important role in removing fears of using this financial instrument by giving continuous trust to these funds. The purpose of the study is to discuss the requirements for setting up mutual funds and to indicate the availability of requirements in Iraq to allow Iraqi investors to use their money in these funds. As for the practical test, it dealt with two parts. The first was the analysis of the mutual funds data for the Kingdom of Saudi Arabia for the period 2000-2017 in terms of relationship and impact on the Saudi security market by using the statistical program (SPSS.25) and program Microsoft office Excel , And the second section discussed the possibility of setting up mutual funds in Iraq, Through the analysis of the questionnaire distributed to the managers of the banks (25) questionnaire, and the questionnaire distributed to investors in the securities market of (25) questionnaire also.

The study reached a set of conclusions as to the basic requirements for setting up joint investment funds in Iraq Both in terms of laws and financial resources and technology information and technical expertise to fund management, As well as the desire of Iraqi investors to participate in mutual funds because of the need for them.