Urges unit holders to diversify portfolio
FSDH Asset Management Limited has announced a reduction on the minimum initial amount required to invest in its Coral Growth Fund or Income Fund from N50,000.00 to N5,000.00 to make it more retail in appeal.
The two coral funds were launched by the firm in 2005 and 2006. Growth Fund seeks to enable investors achieve capital growth over the long-term while the Income Fund was established to provide investors with an investment outlet that provides stable but competitive returns in excess of inflation.
Speaking on why the minimum amount was reduced to N5,000.00, at the EGM of the FSDH Coral Funds held in Lagos, the Managing Director of FSDH Asset Management Limited, Mrs. Olumayowa Ogunwemimo, explained that the decision would to make the Funds more retail was driven by a number of factors and one of which is the persistent demand from existing investors and prospective investors.
“With the reduction of the minimum amount required for initial investment to N5,000.00, we are of the opinion that everyone can now invest in any of the Coral Funds. Investments can be made for children, gifts to love ones, for savings among other.”.
She stressed the need for unit holders to diversify their investment across different segment of the market, noting that all markets does not go in the same direction at the same time.
“Unit holders should diversify their investment across different segment of the market, the equities and fixed income because all markets does not go in the same direction at the same tme so if you have a diversified portfolio, it will help your entire portfolio. When equities market is not doing so well, you have a buffer in the fixed income investment and vise versa.
She assured shareholders of better returns in the next financial year as the management has hedged against unforeseen volatilities that could impact on the movement of the fund.
“In 2018’ we had seen a case where yield in fixed income securities have been coming down, we had anticipated that yields will come down at some points particularly as we have seen the trend of inflation rate and the plans of the CBN and the Debt Management Office on what their funding structure will be so we have taken a long term view on fixed income securities and what we had done was to invest more on longer dated investment.”
A unit holders, Michael Ogundeji described the fund as a low risk and reliable investment, noting the firm have been competent in the way they diversify the portfolio over the years. He urged the management to continue in their research and open more fonts, in order to increase their investment returns.