As investors begin to review their portfolios for alpha returns in 2022, the Group Managing Director, Futureview Group, Mrs Elizabeth Ebi has advised them minimize risk and maximize returns by investing in mutual funds.
A mutual fund is a pool of funds collected from numerous investors for the purpose of investing in securities such as stocks, bonds, money market instruments and related assets. Mutual funds are operated by professional fund managers, who invest the fund’s capital to produce capital gains and income for the investors.
Futureview is currently offering Futureview Dollar Fund and Futureview Equity Fund. Both Funds are targeted at investors across the board.
Commenting on mutual funds at the weekend, Mrs Ebi said the asset class provided an ample opportunity for investors to diversify their risks and enjoy regular income.
According to her, investment mutual fund hedges investors against the risk of inflation in an environment characterized by uncertainties. She noted that since mutual funds are managed by professionals, this save investors the ordeal of getting their fingers burnt.
“ The benefits of mutual funds cannot be over-emphasized. The asset class enables an investor to diversify his risk and at the same time enjoys steady income. Mutual funds hedge investment against inflation risk and its risk and return trade off positions an investor for enhanced returns irrespective of the nature of an operating environment. I advise investors across different classes to take advantage of this investment option as we begin a new year, ”said Ebi.
Futureview Dollar Fund which is targeted at both Nigerians in diaspora, foreign investors, and those in the country is 15,000 units at $100 per unit while Futureview Equity Fund comprises 5,000,000 units of N100 each, both at par.
As part of its investor protection mechanism, the Securities and Exchange Commission (SEC) has restricted mutual fund managers from investing the assets of the fund in their own securities or that of the trustees, custodian or other associates.
An investor’s shares in a mutual fund represents his part ownership and income that the fund generates. In the United States, mutual fund accounts for the largest investment in equity.