By Adedapo Adesanya
The acting Director-General of the Securities and Exchange Commission (SEC), Ms Mary Uduk, has called on investors to consider diversifying their portfolio due to the high risk in the market. According to her, doing this will help reduce the risk in a market that is prone to uncertainties.
She disclosed this during the one-day enlightenment programme for the Nigerian Army Ordinance School, Ojo Cantonment, Lagos over the weekend.
Ms Uduk, who was represented at the event by the Head Lagos Zonal Office of the SEC, Mr Stephen Falomo, said that an investor is expected to consider a lot of things before going into the market before taking a decision.
“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 investments,” she said.
She said doing this would help bring about decent returns for investors, and also urged investors to prioritize investment learning and education in order to put their money in various assets class to lower risks.
Ms Uduk then warned on the need to be wary of investing so much in shares, bonds, and mutual funds that could lead to capital erosion. She, however, said that commission was putting in place initiatives that would boost investors’ confidence in the Nigerian capital market.
“We have the E-Dividend mandate system, the Direct Cash Settlement as well as multiple subscription in place. Investors have to take ownership of their investments.
“They have to be able to monitor their investments, attend Annual General Meetings as well as read the annual reports sent out to them.
“We also protect them through the National Investors Protection Fund (NIPF) Risk Based supervision that enables us to supervise the operators to ensure that they do not do what they are not supposed to do,” she said.
She added that commission through the Complaints Management Framework would enable investors to know where to complain to and how long it would take for such complaints to be resolved.
