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Investors need professional help to manage risks – Expert

By on March 19, 2015

For investors to mitigate risks, achieve their investment goals and achieve financial freedom, it is important for them to seek professional help, a financial analyst, Mr. Abayomi Adeyeri, has said.

According to Adeyeri, savings and investment are meant to be managed carefully through a planned programme of idieas, resources and actions based on the investor’s peculiarities.

The expert, who is also the Chief Marketing Officer, Flobal Trust Limited, however, observed that most Nigerians did not have the expertise to manage the risks of investing, hence the need for them to rely on professional investment managers.

He made the comments, while delivering a paper during a seminar, the Warri Business Seminar, in Delta State, a copy of which was made available to our correspondent on Tuesday.

The inability of Nigerians to understand and manage the risks of investing has been cited as one of the reasons why many of them have shunned the capital market and investing.

However, according to Adeyeri, although investments involve risks, the risks are greatly reduced when investors seek help from professional investment managers.

He explained that investment risks could also be mitigated by diversifying one’s portfolio across several investment options.

These options include money market instruments such as Treasury bills and capital market instruments such as shares and real estate investments, among others.

Adeyeri, who admitted that there were risks involved in non-fixed investments such as shares, said portfolio diversification and reliance on professional managers would ensure that investors benefit from the high returns associated with such high-risk investments.

He warned investors to be cautious and always confirm the status of any investment company they want to deal with the Securities and Exchange Commission to avoid being defrauded by illegal operators.

Stressing the importance of financial planning to savings and investments, he said, “If you do not know where you are going, you may end up where you do not plan. Design your roadmap to your financial plan and know what you want to save for and when.

“You must also know your current financial situation by figuring out what you own and what you owe. By so doing, you will be creating a “net worth statement”, showing your assets and liabilities.”

Flobal Trust Limited is licensed by the Securities and Exchange Commission as a corporate investment and financial advisory firm that provides tailor-made financial services and products.

 

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