investment. This approach, though somewhat in different variations, is followed in the
definitions provided by another group of scientists [13; 14; 15; 16; 17; 18].
Among scholars in the interpretation of the notion of “institutional investor” there
is also no consensus on the ultimate goal of investing in this type of investor in the
financial market.
Thus, in the analyzed definitions, interpretations prevail in which the objective of
investment activity of the institutional investors is not indicated at all. Since investment
activity necessarily has the ultimate goal that is connected with providing the most
effective measures and actions on realization (effectuation) of investments, we
consider obligatory indication of the ultimate goal of investment activity of the
institutional investors - subjects of investment activity - in determining the essence of
this type of investors. Such an approach is found in the scientific works of many
domestic and foreign scholars, as well as in legislative acts, but with the definition of
somewhat different means of the ultimate goal of investment. Thus, Z.H. Vatamanyuk,
T.M. Kushnir, O.M. Yurkevich as a goal of investment activity of the institutional
investors generally define investment income (income from investments) [14, p.125].
Profit is distinguished as the purpose of investing by institutional investors, is
distinguished in the works of A.M. Nikolaeva [19]. A wide list of the resulting
investment objectives by the institutional investors is presented by V.L. Plastun, who
concludes that institutional investors “form portfolios of financial assets to generate
profits…, provide a stable level of income, achieve other investment goals” [10].
In general, we are impressed with the highlighted positions offered by the
academics. However, we consider it expedient to focus on investing by the institutional
investors in the financial market, in particular, in terms of obtaining income (profit)
and/or preserving the value of investments.
Thus, the analysis of the theoretical approaches to the definition of the essence of
the institutional investors allowed to form the author's vision of the notion of
“institutional investor” that should be understood as a specialized financial
intermediary that is a legal entity that professionally accumulates savings (funds) of
various status in the financial market investors to further invest them in order to
generate income (profit) and/or save investment value.
Functions, distinctive features and composition of institutional investors. At
the same time, such a content characteristic of the nature of investment investors made
it possible to highlight the distinctive features of this type of investor as a special type
of financial intermediaries in the financial market, and, thus, allowed to separate the
essential content of the concept of “institutional investor” from the general notion of
the “financial intermediary”. So, if institutional investors are treated as financial
intermediaries, the following can be attributed to the main functions performed by
them:
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