*Corresponding author email: Ramzan.mehar@uogsialkot.edu.pk Symbiosis Group Symbiosis www.symbiosisonline.org www.symbiosisonlinepublishing.com The Factors Effecting Portfolio Investment in Pakistan Muhammad Ramzan Mehar* and Ali Hasan Lecturer, Registration Coordinator, Head of Entrepreneurs’ Society of Sialkot (ESOS), University of Gujrat (Sialkot Sub-Campus PPP), Pakistan International Journal of Family Business and Management Open Access Research Article Introduction Background of the study This study present new approach to found the factor that impacts the portfolio interest in Pakistan. Portfolio speculation is one of the fundamental parts of private venture. Portfolio venture is useful to fill the hole amongst sparing and interest in Pakistan. Putting resources into corporate securities is gainful and in addition energizing. One ought not to overlook the component of dangers from putting resources into singular security. Hazard emerges when there is a plausibility of variety around expected come back from the security. As all securities pass on fluctuating characteristics of threats, hold more than one security at any given minute enables money related pro to spread his perils. The speculator trusts that regardless of the possibility that one security acquires a misfortune the rest will give some assurance from an outrageous misfortune. Hence, portfolios or blend of securities are supposed of as a device to spread hazard over numerous securities In past days, the traditional style managers of portfolio investments spread funds over securities of large number of companies only based on perception and intuition. They had no actual understanding of applying risk reduction. Meanwhile in Abstract 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; Received: June 04, 2018; Accepted: June 21, 2018; Published: June 29, 2018 *Corresponding author: Muhammad Ramzan Mehar, Lecturer, Head of Special Interest Group of Finance (SIG-Finance), Head of Entrepreneurs’ Society of Sialkot (ESOS), Registration Coordinator, University of Sialkot, Sialkot, Pakistan, E-mail: Ramzan_mehar@hotmail.com; Ramzan.mehar@uogsialkot. edu.pk 1950, a body of knowledge has been built up which quantifies the expected risk and also the riskiness of the portfolio. The theory of portfolio has been developed to deliver the organization a method to estimate the advantages and disadvantages of investment portfolio. It is fundamental to realize what portfolio is if you want to have a superior comprehension of portfolio administration. Portfolio implies a mix of money related resources and physical resources. The money related resources are offers, debentures and different securities while physical resources incorporate gold, silver, genuine bequests, uncommon accumulations, and so on. The embodiment of portfolio is that advantages are held for venture devotions and not for utilization purposes Chaudhry I, et al. [8]. Portfolio speculations are latent ventures as they don’t include control of the issuing association or dynamic organization. Or, on the other hand possibly, the explanation behind the wander is solely money related benefit, rather than outside direct theory (FDI), which empowers an examiner to rehearse a particular level of regulatory control over an association. For worldwide exchanges, value ventures is what where the owner holds under 10% of an organization’s offers are named as portfolio speculations. These exchanges are also referred to as “portfolio streams” and are consider as a recorded in the money related record of an installments for nation’s adjustment. This investigation shows the factors that empower or demoralize portfolio venture. To investigate the long run and short run relationship between net portfolio speculation, , Market capitalization, Deposit rate, Broad cash (M2), remote direct venture and Trade receptiveness. These factors are solid for determining the conduct of considering economy in an all-around mannered way (Sukanya and Thimmarayappa R, [9], Kassim H, [12]). Research Problem The problem which is concentrated by researcher in this particular study to know about the factor effecting portfolio investment in Pakistan. Portfolio venture is a bundle of budgetary speculation instruments. These budgetary instruments are anything but difficult to exchange and are less unending. These tools are not inevitably a portrayal of long-run intrigue. This