'Realigning portfolio diversification key to good returns' – New Telegraph Newspaper

Nigerian Exchange Ltd (NGX) has stressed the need for realignment on diversification of portfolios by investors to ensure enhanced return on investment. Mr. Jude Chiemeka, Divisional Head, Capital Markets, NGX, said this at Leading Conversations with FBNQuest webinar themed: Exploring the Relevance of Diversification recently. He noted that diversification was a way of “edging your risk with the strategy that you deployed to manage your risk in a manner that will help you meet your investment objectives. In the long run will help you smoothing out your return and also help to ensure that the whole various risk that will affect market being liquidity, political risk all those risk affecting investment are managed in a way that allow you to meet your long term objective with the saying, (don’t put all your eggs in one basket).” Chiemeka also emphasised that investors had to weigh the risk when making a decision. “The younger investors still have a long time and will be looking to invest in instruments that have the ability to turn around over a longer period of time should be invested in equities.
In equities, we are looking at growth not necessarily the blue chips. “Those who are closer to retirement should not take the same risk level like the younger ones. That the perimeter realigns heavily in investment objectives, income, age and return on investment,” he added. He also advised on portfolio diversification, which helps to address some of the issues brought by the Russian and Ukraine war that is affecting the world economy.
“The high inflation environment is not necessarily affecting Nigeria alone. It is a global phenomenon that poses risk to return. You need to have an investment that you can hold over a period of time. “You can also own bonds like fixed income securities in your portfolio that will help you move out high volatility that bedeviled probably see in some markets. “Our market has grown over 20 per cent and you can see in the last three months there is some volatility as investors begin to look at all the rising rates. “Sincerely, fixed income is the best approach at this time. Also think about commodity base products, and look at the products we have at NGX some have grown 65 per cent return year to date,” he noted. As a multi-asset exchange, Mr Chiemeka said NGX had various products for every investor regardless of what their investment goals, risk appetite or return expectations might be. He listed the products as equities, fixed income, Exchange Traded Funds and recently launched derivatives.
The Minister of Works & Housing, Babatunde Raji Fashola, has said that the country’s vision and implementation of urban regeneration should lead to sustainable communities where people will like to live. Fashola made these remarks while leading renowned stakeholders in both the public and private sectors in the discussion of solutions to Nigeria’s urban housing […]
The Central Bank of Nigeria (CBN) yesterday released the framework for the operation of the NIRSAL Microfinance Bank (MFB) window of the Nigeria Youth Investment Fund (N-YIF). According to the apex bank, the gund, which is an initiative of the Federal Ministry of Youth and Sports Development (FMYSD), is aimed at responding effectively to the […]
  As the elections into National executives council of the Maritime Workers’ Union of Nigeria (MWUN) draws near, the Committee of District Chairmen, Dockworkers branch of the union has said that they unanimously endorsed the second term ambition of Prince Adewale Adeyanju as the President General of the union.   They said this on the […]


The need to train and retrain journalists in their field of work cannot be over emphasized. That was the reason why two amazons in the persons of Ibiba Don Pedro and Constance Meju, who have shattered the glass ceiling in the media industry and achieved a lot thought it wise to train the younger journalists […]
Insecurity has taken hold of the land, the various security agencies seem helpless. From North, West, South and East, the situation is tense, fear is the order of the day. TAIWO JIMOH takes a deeper look at the situation and suggests the way forward. Worrying level of criminality Nigeria, globally known as a peaceful country […]
‘Every day is a struggle, and fear of street urchins, palpable’ The dilemma homeless girls face on a daily basis, are dreadfully pitiable. They are condemned to a life of rejection, trauma, deprivation and poverty. Isioma Madike, who took a tour of the city, visiting some bridges, markets and hot spots, serves a story of […]
…supports Nwoko’s quest for Senate Prominent indigenes of Anioma in Delta State, have applauded the Federal Government and the Nigerian University Commission (NUC), for what they said was a bold step in giving the final approval for the first Sports University in the country, which is cited in Idumuje-Ugboko. Reacting to the good news, the […]

source

Leave a Comment