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Asymmetry of information, risk a decision making in the process of investing to funds of qualified investors

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  • Kamila Veselá

Abstract

The submitted paper focuses on information asymmetry in the area of investments in qualified investors’ funds. The qualified investors’ funds are the main force standing behind the development of collective investment market in the Czech Republic. Determination of investment strategy has a key role in defining the level of risk of the fund, the knowledge of such investment strategy is essential for the decision of the investor. The quality of the provided information is therefore critical; however, the investor cannot be expected to have the same knowledge of the fund as does the manager of the fund. The manager, maximizing the profit (his fee for managing the fund), may try to contort information towards the investor to “lure” him into an investment and thus achieve his goal. The objective of this paper is therefore the identification of risks connected to investing in QIF as result of the existence of IA on the side of the investor, qualitative analysis and proposal of measures leading to the elimination of IA. The main goal of realized analysis was to create an information model, as a methodological guide for potential investor shows how to work with asymmetry information and how to integrate these informations into the decision-making process.

Suggested Citation

  • Kamila Veselá, 2015. "Asymmetry of information, risk a decision making in the process of investing to funds of qualified investors," Ekonomika a Management, Prague University of Economics and Business, vol. 2015(3).
    • Handle: RePEc:prg:jnleam:v:2015:y:2015:i:3:id:258
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    References listed on IDEAS

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    3. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
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    More about this item

    Keywords

    nejistota; uncertainty; Riziko; Risk; Information asymmetry; Decision making; Investment; Funds of qualified investors; Asymetrie informací; Rozhodování; Investice; Fond kvalifikovaných investorů;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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