IMPACT OF COLLECTIVE INVESTMENT SCHEME ON FINANCIAL MARKET DEVELOPMENT IN NIGERIA

In any economy there exists a financial system that regulates the financial environment o f that economy. This study thus aims at assessing the impact of Collective Investment Schemes (CIS) to financial market development in Nigeria. The study applied a non-experimental research design using regression analysis (ordinary least square) to address the hypothesis o f the study. The. study identify two financial market variables like Capital Market Investment and Money Market Investment to measure how CIS, investable fund has impacted on the financial market development. Augmented Dickey Furled (ADF) Unit root test was tested to ascertain the stationarity o f the data. Findings from the study showed that CIS were found to have influenced the growth o f financial markets positively and equally significantly. It was observed that CIS lias significant and positive relationship with CMI. The findings further showed that CIS investment in the area o f bonds and equity funds have contributed immensely to the growth of money market (MM) in Nigeria. The study thus recommends that the apex regulators o f the financial market like SEC, NSE and CBN should create more awareness for investors in the financial market to mobilize themselves into institutional investors like CIS firm s to participate fully in the financial market through investment in Capital' Market and Money Market Investments. Collective Investment Schemes are vital vehicle for developing the financial market in both developed and developing economies and as such Nigeria should have to take advantage o f it to develop its financial system.