As businesses in the country grapple with the economic uncertainty occasioned by the Covid-19 pandemic, Sigma Pensions has advised investors not to panic.
The organisation also stressed the need for investor education in order to ensure a diversified portfolio.
The Chief Investment Officer, Sigma Pensions, Mr. Pabina Yinkere, gave the advice while speaking at a webinar titled: “Big Future, Little Steps: The Power of Diversification,” organised by the firm yesterday.
According to Sigma Pensions, the webinar was organised with the aim of educating attendees on skills/actionable advice from professionals on personal finance diversification, choosing investment instruments and pension fund diversification.
In his presentation titled, “Hedging pension funds against market volatility,” Yinkere, noted that 2020 was a peculiar year, especially for investors, as the financial markets were impacted by the Covid-19 crisis.
He said: “When you are faced with a volatile market, do not panic; read the situation well, understand what is going on (and) where necessary, reduce risks.”
He also advised investors dealing with market volatility to, “Cushion portfolio with assets that give accrual income and look for opportunities in the chaos,” adding that, “there is gold in dirt.”
The Sigma Pensions chief investment officer, who pointed out that volatile assets are usually considered riskier than less volatile assets because their prices are expected to be less predictable, encouraged investors to pay close attention to the management of their pensions.
He added: “With over 15 years of experience, our clients have relied on our exceptional service, right from managing their contributions to transitioning to a delightful retirement life.”
“Also we have a highly professional investment team, providing competitive investment returns irrespective of economic conditions, timely, secure, seamless multichannel access to your account statement and other requests, at the touch of a button through various digital and self-service options.”
In her contribution, the VP, Global Markets at Parthian Partners, Mrs. Ola Oladele, stressed the importance of investing, noting that while all investments provide rewards in one form or the other: “For each type of investment, there are always risks.”
She cited inflation which, according to her, has greater risks for debt than for investments in equities.
The financial expert advised investors to always ensure that their portfolios are sufficiently diversified in order to minimise risks of unexpected losses.
“Diversification is simply not putting all your eggs in one basket. You diversify to minimise the risk of loss to your overall portfolio,” she stated.
Similarly, in his presentation, the CEO and Co-founder of Cowrywise, Mr. Razaq Ahmed, stressed the importance of financial education for investors. According to him, of all the requirements that make for successful investment, financial education is probably the most important.