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Finance | Savings, Thrift & Investment

Five (5) Key Lessons from the M36 Webinar on Investing in Today's World

Apr 16, 2021   •   by   •   Source: Proshare   •   eye-icon 1143 views

Friday,April 16, 2021 / 03:00PM / M36 / Header Image Credit: M36

 

 

Withthe unprecedented times brought on by the COVID-19 pandemic, more individualsare asking, "What next? What are the opportunities as the world slowly recoversfrom the impact of the crisis?"

 

Tohelp answer these questions, M36 - a new digital lifestyle and investmentplatform powered by Union Bank - hosted a webinar tagged, "Investing inThese Times." The webinar, which was held in collaboration with Sankore, alocal boutique wealth management firm, presented an opportunity forparticipants to get insights and ask questions about wealth planning and trendsto watch and jump on in today's economy.

 

Speakersat the webinar included Olayemi Agbe-Davies, Chief Dealer at Union Bank, andTiti Odunfa-Adeoye, Founder and Chief Investment Officer, Sankore who shared insightson Nigeria's economic outlook, the investment outlook for this year, and how toset the right investment strategy.

 

Hereare the five key lessons we learnt from the webinar:


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Lesson 1: Fixed income investing should be a focus for everyone!

Investingin fixed income instruments such as FGN bonds and Treasury Bills should be afocus for everyone. The pandemic brought about considerable volatility anduncertainty in the financial markets and highlighted the importance ofdeveloping a rigorous long-term asset allocation plan while understanding the 'risk and return' dynamics within the asset classes.

 

Allinvestors - risk-averse, moderate and aggressive - need a long-term assetallocation, no matter what the yields are, as fixed-income returns give the securityand confidence to take risks and make returns.

 

Ifyou don't have a long-term investment allocation, it is important to create onenow. With that in place, you can then think of the various channels to growyour portfolio.

 

Lesson 2: Diversify your portfolio and stay liquid - cash flow isessential!

Thestock market reacts to what goes on in the world and is ultra-sensitive toexistential crises such as a pandemic. Therefore, diversification of aportfolio is the key to going through tough times. The purpose of diversificationis to spread the risk associated with your investment portfolio- or moresimply, not putting all your eggs into one basket. Havinga diversified portfolio across stocks, fixed income and other asset classes canhelp to smoothen out these peaks and troughs and generate more consistentinvestment returns.

 

Also, an integral part ofa good investment strategy requires that a significant part of your portfoliostays near liquid as this can come in handy as a buffer against any unforeseen events.Staying liquid and allows you to tap into new investment opportunities as andwhen they emerge.

 

 

Lesson 3: Buy Real Assets

Inflation& rising interest rates are some common themes for both long and short-termgoal setting, and the primary purpose of real asset investments in a portfoliois to serve as a hedge against rising inflation.

 

Unnecessaryrisk can be avoided with clearly defined objectives and real assets such asgold and real estate. They also deliver many benefits, including strong andsteady returns, protection from inflation and portfolio diversification.


 

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Lesson 4: Look towards Tactical Trades

Manyindividual portfolios tend to be unprepared for shocks, and the pandemichighlighted the need for investors to be prepared for the unexpected. This canbe achieved with tactical trading which is a style of investment that involveslong or short-term view in different asset classes, as opportunities arise.Tactical trades help investors optimise their returns to improving their returnsin the short-term returns. recommended asset classes for 2021 in the long andshort term include: Real Estate, S&P 500, Agriculture, Treasury Bills, FGNBonds Private Equity/Venture Capital opportunities & NGN/US equities), and Gold.

 

Whilethese are the suggested trades for 2021, it is important to remember that yourcore portfolio should be in fixed income and near liquid.

 

 

Lesson 5: Seek expert advice

Whilemany individuals believe they can navigate the investment landscape withoutexpert advice, it is important to seek the services of an experienced investmentadvisor who can guide you. Investing in today's world comes with a lot ofuncertainties and having the right investment partner that understands yourlifestyle and investment goals can make all the difference.

 

Yourportfolio needs to be set up for unprecedented occurrences like a pandemic and evenif your portfolio was not initially 'COVID ready', the goal is to make it readyfor whatever will come next!

 

Professionalwealth managers like M36 not only deliver awide range of investment products, but also ensure you make sound investmentchoices that can help you navigate unforeseen hurdles, ease your investingworries and grant you the Freedom to Choose.

 

Toget the full scoop and learn about where and how to grow your wealth in today'sworld, click hereto watch the replay of the webinar. Also, look out for more webinars by M36 designedto equip participants with an in-depth understanding of wealth management,investments and savings. You can also follow @m36_ng on Instagram for moreupdates.


 

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Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

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