Amid uncertainty, investors urged to explore market opportunities
Association of Securities Dealing Houses of Nigeria (ASHON) has urged investors to take advantage of opportunities in the Nigerian financial market and expand their investment portfolio despite the lingering uncertainty in the country.
Chairman of the association, Sam Onukwue, was reacting to some media reports that investors are facing bleak future in the second half of 2022, following continuous macroeconomic vagaries, supply chain disruptions arising from the Russia-Ukraine conflict, drop in production and trade growth, rising higher energy, food prices, and inflation among others.
Onukwue said there would always be investment opportunities, adding that investors that take sound investment advice from stockbrokers can enjoy superior return on investment on a constant basis, regardless of the state of uncertainties in the global financial markets.
Onukwue lamented that many investors often lose huge amounts of money by relying on their own intuition or consulting unqualified investment advisers.
He explained that investment in any asset class required a lot of variables, including an investor’s investment objective, risk tolerance, sources of funds and time horizon, among others.
“Investment is a trade off of risk and return, whereby an investor aspires to post highest return at lowest risk. This is achievable if certified investment advisers do proper analysis.
“Our Association- ASHON shall continue to engage investors on the need to work closely with stockbrokers for sound investment advice.
“We are not saying that there are no risks. Even asset classes that are believed to be risk free contend with inflation risk, exchange rate risk and a host of others. What we are saying is that risk can be managed to ensure superior returns.
“In every risky situation, there are opportunities. The same applies to investment. It is all about understanding and deploying appropriate investment strategies. It’s not a game of one-size-fits-all,” he said.
“Contacting a professional investment adviser is in itself a risk management strategy. Investment professionals profile their clients as a precondition for advice on the appropriate investment opportunities.
“There shall always be challenges as long as human beings exist. This does not mean that one cannot post superior return on investment. This is where consulting certified investment professionals becomes essential,” he said.
Onukwue pointed out that the association would continue to guide investors on how to identify the registered investment professionals as they have the skills, competencies and integrity to assist investors make the right decision.
According to him, ASHON places a premium on professionalism of its members and would always collaborate with other stakeholders in the financial market to ensure that market integrity is protected.
Market watchers at the weekend explained that the introduction of derivative trading by NGX would create opportunities for investors to hedge their investment against risks but emphasized the need for enlightenment of shareholders on the benefits of derivatives.