Investors have been advised to diversify their investments while transacting business in the capital market.
This advice was given by the acting Director-General of the Securities and Exchange Commission (SEC), Mary Uduk, who spoke at a one-day enlightenment programme for the Nigerian Army Ordinance School, Ojo Cantonment, Lagos.
The acting Director-General of SEC emphasized the need for investors to invest in several assets classes to reduce risks associated with depending on just one type of asset.
However, Uduk warned that the capital market is unpredictable. This means that an investor could either gain returns on his investment or lose it all. The onus lies on the investor to pick his choice, she cautioned.
“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.
“There are good opportunities to achieve decent returns on investment in the market. Investors should seek knowledge before investing,” she said.
The SEC boss urged investors to be smart and avoid obvious mistakes that could come from a mixed bag of investment. She advised investors to make sure that investment portfolio contained a mixture of bonds, shares for profitability. She also drew investors’ attention to mutual funds which she tagged as a valuable choice of investment.