The Director, Kakawa Asset Management Limited, Mrs. Modupe Mujota, has called on investors to tap into the opportunities offered by mutual funds.
According to her, mutual funds remain one of the best investment options investors can take advantage of at present. She stated this during an interview with our correspondent on Tuesday in Lagos.
Mujota said mutual funds, unit trust schemes or collective investment schemes all related to the same type of investment.
She added, “Basically, it is a pool of investments coming together to get the benefit of professional investment advice, leveraging the strength of their numbers to get more out of the market, when it comes to return on investment.
“For instance, the Kakawa Guaranteed Income Fund is perhaps the most interesting collective investment scheme or mutual fund in the market today. I say this because it is the only fund that guarantees your principal investment and a guaranteed minimum return, with a promise of profit share potential of 35 per cent of an upside on performance.”
She noted that the KGIF was benchmarked against the Central Bank of Nigeria’s Monetary Policy Rate, which had been stagnant over the last few months at 12 per cent.
“There is no way you can get below 12 per cent in the KGIF right now on a minimum investment sum of N50, 000. In fact, our unit holders, last year, did not only get the minimum return but also got paid bonus following our recently held annual general meeting.” she added.
Speaking on the capital market performance, she said that although the volatility was high in a small number of stocks, there was still ample opportunity to make money, even within those stocks.
She added, “A lot had been done already and a lot is still being done to revive the capital market. We are still going to see more innovation. We’ve seen in recent times the introduction of market makers. We’ve seen them increase the number of stocks in which market is to be made to as much as 28.
“It may not look like much when you compare it with the total stocks traded, which are in excess of 250 stocks. However, when you look at the composition of our market capitalisation, you will realise that very few stocks actually drive the market; and these are the stocks in which we are increasingly seeing the Nigerian Stock Exchange propose market makers to; to make a market for, with evident results in market performance.