8 reasons why investing in Mutual funds gives you more baskets for your eggs.

A few months ago, my cousin and his  fiancee were making plans for their wedding, all was going smoothly until my aunt(cousin’s mother) insisted on baking their wedding cake. She does a lot of baking at home but not for any important occasion, so this was a first.

My Cousin Kelvin didn’t want to hurt her feelings so he convinced his then fiancee and both finally agreed to let her bake the wedding. The cake did turn out nicely I must say, but my aunt tripped while trying to arrange it only a few minutes before the reception started, just as the guest were entering the hall.

It is always good to have options in most of our endeavors in life, particularly when it comes to investing, Mutual funds offer this and much more.

Spreading your risk: Mutual funds give you the option of variety, it is like getting professionals to bake several wedding cakes for you so you get to reduce any unforeseen  risks. But what are mutual funds? you may be wondering if you are a newbie in investing, it is a professionally managed investment portfolio that uses money from multiple investors to purchase securities. FBN capital asset based  limited is a reputable investment company with an asset base of over N146 billion naira, click here http://www.fbncapital.com/asset-management/our-products/mutual-funds to learn more about them

Easy to start: This is because it doesn’t require participants to have a large investment. Most mutual funds companies have a reasonable minimum amount you can use for opening a portfolio, especially for IRAs(Individual retirement accounts) where a regular monthly deposit is required. Stanbic IBTC  asset management is a major player in this industry  the company has a strong ownership & financial resources. Their track record is enviable

  • Manages a basket of open-ended mutual funds/collective investment schemes with assets worth billions of naira
  • In-depth knowledge and experience of the Local and global markets
  • Well acclaimed research capabilities
  • Sole book runner to the MTN $1billion  Linked – units private placement.

You can visit their website  by clicking http://www.stanbicibtcassetmanagement.com/

Predictable price movement of funds: due to the expertise of the professionals handling your portfolio, valuable stocks are purchased on your behalf. This makes it predictable as most likely when  the stock market goes up, most of your quality stocks will gain in response to the market as they are more likely a part of the shares that caused the stock market to experience gains in the first place.

You can sell your shares at your convenience: It is more difficult for an individual investor to sell his shares and if he does he may sell at a lesser net value than the market price as there is no industry regulation protecting him. Whereas when you have a mutual fund investment portfolio you can sell off your stock at their net value any time you want.

You get commissions: Because mutual funds purchase stocks in very large quantities, they usually get a commission on lowest brokerage. This means that you get to save more on a purchase of the same unit of stock a small investor buys. The more savings you make on building your portfolio, the more likely it is for you to gain more on your investment.

Limited personal liability: Mutual funds have no added personal risk apart from the risk in your portfolio account. It is not unusual for individual investors to be  asked to accept responsibility for other liabilities that are generated by investment undertakings. If you are a mutual fund investor, you will avoid extra liabilities.

Safety: Part of the industry regulated requirement for operating a mutual fund is an obligation to hire an independent bank to keep all the liquid cash held by the mutual fund companies. The banks act as protectors to the shareholders by preserving their funds. This helps prevent mutual funds from going bankrupt.

Industry Rules and regulations: The securities and exchange commission(SEC) regulates the mutual fund industry. All mutual funds are required to register under SEC. The securities and exchange commission also protects the investors by requiring mutual funds to give written prospectus containing information with the funds history, operating policies, and other vital information.

There is no doubt that mutual funds are the way to go if you want a secure investment option.

Visit my hire me page to find out how you can use my services


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