Investment funds which aim to achieve profits do not serve the national goal, according to Egyptian stock market experts. They said such funds cannot save the Egyptian stock market through buying shares at their lowest values. The solution, according to the experts, lies in establishing a sovereign fund. Hisham Tawfik, a member of the board of Egypt's stock market, said the crises prompt investment funds, as individuals, to sell their shares out of fear of losses. It is a mistake to wait for these funds to help support the stock market during these crises, he said. Tawfik said the only way to support Egypt's stock market is by establishing a sovereign fund which can save the stock market during the critical stages, in addition to achieving profits. The policy adopted by such a fund should be to buy shares during the crises and sell them after recovery. Ehab Saeed, a member of the board of Osool Company, agreed with Tawfik that investment funds cannot save the stock market. Saeed said a sovereign fund aiming to support the market and achieve profit must be established. The sovereign fund should not focus only on supporting shares during critical stages, he said, adding that achieving profit should be a main goal of such funds. Stock market expert Mohamed Said said investment funds aim to achieve profit and achieve the interests of their investors regardless of national interest. He added that the stock market's reaction to positive or negative events is exaggerated, so investors should take suitable decisions for capital management to face such critical stages. The Egyptian stock market has swung between deterioration and improvement since Egypt's January 25 Revolution, which toppled the former regime from power. Events in the country have affected the market in both directions, and the U.S. debt crisis has negatively affected Egypt's market recently.
