Pension fund is a pool of resources contributed by the employees with the aim of having\r\nenough resources to carter for their needs after retirement. Therefore, pension fund needs to\r\nbe invested so as to meet the aim of the contributors. This study was carried out to evaluate\r\nthe factors that determine investment of Pension Funds. The study used primary data, which\r\nwere generated by the use of questionnaire. Respondents were selected from a sample of five\r\nPFAs in Nigeria using simple random sampling technique. A total of 125 questionnaires were\r\nadministered on 18 items using likert scales. Data collected were analyzed using factor\r\nanalysis by principal component. Economic, Risk and Security of real estate factors were\r\nidentified as the major determinants of pension fund investment. The study concludes that\r\nvariables such as interest rate, internal control system etc, are not critical in determining\r\ninvestment of pension funds in Nigeria. The study also recommends that pension fund\r\nmanagers should develop good systems of mitigating on the enormous risks they face in their\r\nduty as investment managers.
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