The Securities and Exchange Commission has kicked against investment in a single-asset class in the capital market.
The acting Director-General, SEC, Ms Mary Uduk, while speaking at a one-day enlightenment programme for the Nigerian Army Ordinance School, Ojo Cantonment, Lagos, urged investors to diversify their investment portfolio in order to mitigate risks.
Uduk, who was represented by the Head, Lagos Zonal Office, SEC, Mr Stephen Falomo, said investors must learn to invest in various asset classes to mitigate risks and exposure.
According to her, investment in the Nigerian capital market, just as in any other capital market across the world, is a mixed bag of fortunes.
She said, “A smart investor is expected to have this consciousness at the back of his mind at all times, even as he wades into the market, to pick his choice instruments or instrument of investments.
“There are good opportunities to achieve decent returns on investment in the market. Investors should seek knowledge before investing.”
Uduk, however, said that an investor must be smart to avoid some obvious mistake that could lead to capital erosion through mixed bag of investment.
She explained that an investment portfolio meant a mixed bag of investment instruments such as shares and bonds, adding that investment in mutual funds was and would continue to be a worthwhile investment in the recent time.
Uduk stated that the commission had a number of initiatives that had been put in place to boost investors’ confidence.
She said, “We have the e-dividend mandate system, the direct cash settlement, as well as multiple subscription in place. Investors have to take ownership of their investments. They have to be able to monitor their investments, attend annual general meetings as well as read the annual reports sent out to them.
“We also protect them through the National Investors Protection Fund Risk-Based supervision that enables us to supervise the operators to ensure that they do not do what they are not supposed to do.”
She added that the commission was working hard on it’s Complaints Management Framework, which allowed investors to know where to complain to and how long it would take for such complaints to be resolved.