Asset Management firm urges investors to diversify portfolio
The Chief Executive Officer of Stanbic IBTC Asset Management Limited, Bunmi Dayo-Olagunju, has called on investors to take advantage of mutual funds to hedge their risks and boost their investments.
According to her, the move has become imperative as investors streamline their portfolios to take advantage of expected opportunities in the capital market in 2016.
Dayo-Olagunju explained that considering the volatility in the equities and commodity markets, it is imperative for investors to diversify their portfolios by investing in mutual funds and other asset classes.
According to her, the attractiveness of mutual funds or collective schemes is the number of advantages it offers over other investment classes, such as flexibility, which makes it possible to either invest a ‘lump sum’ or make regular installments on a monthly basis, which means the funds can be accessed at any time by the investor who may require money for a variety of purposes such as healthcare, education, vacation and housing. Other benefits of mutual funds include steady returns, professional management, and risk reduction, among others.
“Mutual funds offer investors the advantages of portfolio diversification and professional management at low cost. These advantages are particularly important because diversification and professional management ensure steady returns when compared to other investment instruments.
“Mutual funds offer an opportunity for steady growth in assets while reducing the attendant risk associated with investing in individual securities,” said Dayo-Olagunju.
She said Stanbic IBTC Asset Management Limited is particularly committed to ensuring that investors are availed the opportunity of viable investment vehicles so that they can spread their risks, noting that the bank continues to develop an array of products targeted at the needs of Nigerians.
“Stanbic IBTC Asset Management Limited remains totally committed to helping Nigerians build a portfolio of financial instruments from which they can meet their unique investment objectives.
“We must reiterate that there are numerous benefits in investing in mutual funds, especially the expertise that is brought to bear in maximising returns to investors without compromising safety.”
She listed prominent mutual funds under management by Stanbic IBTC Asset Management Limited to include: the Stanbic IBTC Nigerian equity fund, the Stanbic IBTC ethical fund, and Stanbic IBTC money market fund, adding that these asset classes offer investors better bargaining power in the money market.
“In 2013, the Stanbic IBTC Imaan Fund, a mutual fund tailored to the needs of those seeking investments compliant with their religious principles and beliefs, was registered.
“In recognition of its steady performance and track record, Stanbic IBTC Asset Management Limited was awarded the ‘Best Mutual Fund Provider Nigeria 2015’, ‘Best Asset Manager Nigeria 2015’ and ‘Best Non Pension Fund Manager Nigeria 2015’ at the 2015 Global Banking & Finance Review Awards.”