THE DEVELOPMENT OF METHODOLOGY TO ESTIMATE THE EFFECTIVENESS OF INVESTING IN MUTUAL FUNDS

Nowadays there is no generally accepted opinion that is shared by all scientists and economists that the economy in Russia has not completed the transition to a market basis and is at the level of formation. Increased investment appeal of the mutual funds has caused the continuous growth of the number of management companies. The determination of effectiveness of investing in mutual funds is the question of paramount importance for analysts. On the basis of literature analysis it should be noted that there are several methods and approaches to evaluating the effectiveness of investment funds; however, many of them are not used in Russia. This study highlights different approaches of evaluation effectiveness of investing in mutual funds: Coefficient "beta", Coefficient “Alpha”, Treynor ratio, Sharpe Ratio, Profit/loss and the identification of approaches, which are/would be suitable for Russian mutual funds. This paper examines disadvantages and causes of existing valuation models in Russia and provides evidence of growing interest in mutual funds in Russia.