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Hayekian Theory Of Investment Analysis

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2.5: INVESTMENT The term ‘investing” could be associated with the different activities, but the common target in this context is to “employ” the money (funds) during the time period seeking to enhance the investor’s wealth( Leonardo da Vinci, 2010). Funds to be invested come from member’s contributions and proceeds from assets own by the social security scheme. By foregoing consumption today and investing their savings, investors expect a well secure future with better benefit packages after retirement from active service.
Investment is the deliberate act of an individual or an entity that involve deployment of money (cash) in securities or assets issued by any financial institution with the view of obtaining an expected returns over …show more content…

The fundamental difference between the “Keynesian view” and Fisher (“Hayekian view”) lies in the perception of risk and uncertainty, and how expectations are formed. Keynes did not regard investment as an adjustment process toward equilibrium. Hayek (1941) and Fisher (1930), on the other hand, regarded investment as an optimal adjustment path towards an optimal capital stock. In the Keynesian theory investment are not determined by some underlying optimal capital stock. Instead genuine or radical uncertainty takes a central position. Keynes believed that humans were “animal spirited” and that this, combined with irrational and volatile expectations, made the thought of investment as an adjustment process toward equilibrium …show more content…

Subject to the existing Bank of Ghana foreign exchange rules, the Board of Trustees in consultation with the Minister for Finance may invest pension fund assets outside the country except that the amount to be invested externally shall not exceed a percentage of the total funds available for investment determined by the Authority
The objective of SSNIT is to maximise returns on its investments to support the ever-growing benefits payments, and also to meet the cost of administering the scheme prudently. Therefore, highly inclined investors solicit for information in efficient market to invest their Members contributions. SSNIT, through its Investments and Development Division, manages a well-diversified investments portfolio comprising short, medium and long-term instruments, since the best way of managing investment efficiently and effectively is by diversification, which is, investing in different

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