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Mutual funds: An avenue to generate wealth and support infrastructure’



40 Secs Read 

 
Creation of wealth , expansion of business operations and needed capital for the development of critical infrastructure in Nigeria can be achieved by Investing  in mutual funds.

Mutual funds also provides a wide  range of benefits to investors , including portfolio diversification and lower transaction costs , while increasing returns .

A mutual fund can be described  as  a pool of funds brought together by a professional fund manager from many  investors to invest in selected underlying securities .

Reacting to the issue, the Head of Research at FSDH Merchant Bank Limited , Ayodele Akinwunmi , in a note to The Guardian , attested to the fact  that proceeds of mutual fund can be directed  to address critical infrastructure either directly or indirectly .

However , analysis by FSDH Research stressed that mutual funds requires  a lot of  support from the government , regulators and operators in investment management , to assist potential investors in  fulfilling their wealth creation and developmental roles .

According to the research , the Fund Managers Association of Nigeria ( FMAN ) was advised to improve its efforts on  public awareness by informing the public on  the advantages  of mutual funds to generate adequate interest from the investing public .

It also  noted that the mutual fund assets in Nigeria have improved in the last five years.

This however points to an indication of the growing interest in this class of investment , adding that there is significant room for growth in mutual fund assests.

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