Investing in collective schemes, mutual funds reduce risks ―SEC

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SEC Mary-Uduk

The Securities and Exchange Commission has advised shareholders to invest more in collective investment schemes and mutual funds, saying it will reduce investment risks.

The acting Director-General, SEC, Mary Uduk, while speaking in an interview in Abuja on Wednesday, said investors should also seek professional financial advise on where and how to invest.

She said, “In this area, we advise retail investors to invest in collective investment schemes and mutual funds because they are managed independently by professionals and they are diversified; this will reduce investment risks.

Uduk urged shareholders to monitor their investments in the capital market, assuring them that the commission would live up to its responsibilities on investor protection.

She stated that the commission had put in place a number of initiatives to protect investors as well as boost their confidence.

She said some of the initiatives were the e-dividend mandate management system, direct cash settlement, establishment of a committee on identity management in the Nigerian capital market, regularisation of multiple subscription and complaints management framework, among others.

Uduk, however, urged investors to take ownership of their investments.

She said, “Investors have to be able to monitor their investments, attend Annual General Meetings as well as read the annual reports sent out to them. On our part, we 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.

“The Complaints Management Framework enables investors to know where to complain to and how long it takes for such complaints to be resolved. We are committed to protecting investors in the work we do.”

Uduk added that the commission was working with other major stakeholders to set up a committee that would look into and proffer solutions to problems around identity management in the capital market.

She said the initiatives would continue to promote development and trends in the capital market and drive financial inclusion adult exclusion from financial services would be reduced.

The acting DG stated that as of September 2018, the value of unclaimed dividends stood at about N100bn, and those that were reduced this year stood at about N10bn.

Uduk urged share holders not to be far from the capital market, saying negative performances were as a result of high interest rates in other countries.

“A large percentage of those that do business in our market are foreign investors and as of the third quarter of 2018, the capital outflow stood at N513bn as against N477.7bn incoming,” she said.


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