Is investing in African markets a viable option for a Swedish Mutual Fund?: A study of African Securities Markets
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Investors seek superior returns through investing in emerging markets mutual funds. A market that has yet to be tapped by Swedish investors is the African market. In order to allow for investment there, a mutual fund must be created. Aspects concerning mutual funds rules and regulations and invest able markets in Africa come to the forefront in this report which outlines the African markets. The African stock markets are analyzed based on criteria such as, market capitalization; value traded, and amount of companies listed. These criteria help in deciding whether these markets are large and liquid enough to support a Swedish mutual fund. To supplement data concerning the markets, country economic data is used for determining the size and future potential of these markets. The analysis concludes that few African markets are able to support a large foreign mutual fund, but those that do, fill the void the smaller markets leave. It is concluded that it is possible to invest in Africa through just a few markets and that a moderate amount of geographic and sector diversification can be achieved. Although African markets are a viable option, the region poses risks and uncertainties which must be understood before committing capital to the region.
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IdentifiersURN: urn:nbn:se:uu:diva-101119OAI: oai:DiVA.org:uu-101119DiVA: diva2:211850