Investment Decisions in the Romanian Pension Funds

The paper presents the needs of a reliable pension fund system as a consequence of the ageing of the population. The sustainability of the privately administrated pension funds is given by the administrators’ investment decision. The pension fund participants would aim for a low contribution and expect for a prospective high return. At this point is the administrator’s decision to invest the fund in a high return – high risk portfolio that would lead to a high volatility or in a moderate return portfolio with a manageable risk.