Comparing to other countries with lower rate of gross domestic product per capital, Mongolia achieved significant success by laying the foundation of democratic and open markets that ledthem to Economic prosperity. Despite economic and political situation and landlocked territory between giant neighbors (Russia and China) Mongolia kept climbing up to the development and prosperity road.　　In general, the companys short-term financial assistance is needed to upload development, create a long term form of investment funds as assets of the financial system. Because Individuals and entities are funding their businesses and projects with short term financial assistance and also there are high-interest to deposit their capitals in savings.　　Balancing the main components of the financial market, which are capital market and money market, is an important factor for economic development of the country.　　The main reason for selecting the theme of thisstudy is Mongolian banking sector is dominated by developed stock markets of Mongolian, which is regarded as the banking sector accounted for a small share of the financial sector shows that the loss of financial markets equilibrium. Thus, the assets through investment fund to develop capital market by using investment fund operation by increasing obligation of financial intermediary. This way could develop the country’s economy by enhancing the role of its financial intermediation.　　This research study intended to evaluate Mongolian national economic environment and the current conditions of the investment which is operating in the securities market in Mongolia and aim to assess it. As a result, the proposed purpose of determining the appropriate type of investment fund operation in Mongolian securities market and develop its activities by recommending further potential developments on the sector.　　As for research method, I based on investment fund theory, have done survey on investment in fund, according to their current status of investment funds, the level of economic development and fund impacts on country’s economy. As result on the examination of the role of the countrys economy fund to determine whether to conduct operational environment for investmentfund and to research potential further development of investment funds in Mongolia.　　Important results of the research:　　(1) Found out the main negative factors which are effecting the operation of investment fund and determined it is solving opportunity.　　(2) Has identified investment funds which are the most potential to develop investment funds in Mongolian future.