The Factors Effecting Portfolio Investment in Pakistan

The research is about to inaugurate the factor that effect the portfolio investment in Pakistan. Portfolio investment is primary parts of private venture. Portfolio administration in this manner indicates to course of assets in such mix of various safeties in which the aggregate danger of portfolio is limited while supposing most extreme come back from it. Portfolio venture is useful to fill the hole amongst funds and interest in Pakistan. The time of 32 years from 1981-2012 cover for analysis. Trade openness, Market Capitalization, Foreign direct investment, Broad money M2, and weighted average return on deposite used as independent varibales and Net Portfolio Investment (NPI) taken as dependent variable. Augumanted Duky Fuller unit root test, Auto Regresive Distributive Lag (ARDL) and Granger Causilty test use for analysis purpose.Study find that weighted average return and foreign direct investment has negative effect on NPI while every single other variable are positively related with NPI. Keywords: ADF; FDI; Net Portfolio Investment; Broad Money M2; Trade Openness