The Securities and Exchange Commission (SEC) says there is the need for retail investors to diversify their investment portfolio in order to mitigate risk.
The SEC Acting Director-General, Ms Mary Uduk, stated this at one-day maiden National discourse organised by Pragmatic Shareholders Association of Nigeria (PSAN) in Lagos state, south west Nigeria.
Uduk said that investors must learn to invest in various asset classes to mitigate risks and exposure.
The Director-General who was represented by Mr Stephen Falomo, the Director, SEC, Lagos Zonal Office, said that it was imperative for investors to have a mixed bag of investment instruments.
“Investment in the Nigerian capital market, just as in any other capital market across the world is a mixed bag of fortunes.A smart investor is expected to have this consciousness at the back of his mind at all times, even as he wades into the market, to pick his choice instruments or instrument of instruments investments,’’ Uduk said.
She advised investors to seek knowledge before investing in the capital market adding that there were good opportunities to achieve decent returns on investment in the market.
Uduk, however, said that an investor must be smart to avoid some obvious mistake which could lead to capital erosion through mixed bag of investment.
She explained that an investment portfolio connotes a mixed bag of investment instruments such as shares and bonds.
She called on shareholders associations to join hands with the commission to support its initiatives, especially, the e-dividend mandate registration drive.
Uduk said that the commission was committed to significantly reducing the volume of unclaimed dividend in our market.
“SEC will continue to solicit for your support until we achieve 100 per cent implementation of the project. The commission is committed to supporting all association in the capital market as we all work progressively towards the stability and development of the Nigerian capital market,’’ Uduk added.