ARM Mutual Fund: Fact Sheet (August 2020)
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Top 5 Emotional Mistakes to Avoid When Trading Stocks
You know that voice in your head, that says “buy” when you see a stock you know? It is sometimes the voice of your emotions, and emotional buying is never the best strategy. Sometimes it is really hard to drop emotions when trading in stocks because as humans, emotion is an integral part of us. But every stocktrader must know how to pull off the garment of emotions when trading, else, one may make the following mistakes:
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Buying because it’s trendy
There are times when there is a sudden buzz around a particular stock, and everyone seems to be going for it. That is not a great time to go for it. Whenever you buy a stock that many people are buying too, it will be expensive – in some cases even severely overpriced. That’s why you should leverage research from experts like ARM and even do your own research, to allow you anticipate the possible trendy stock that people will demand for, and you get to sell at a higher price.
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Selling when it looks bad
The best time to buy shares is when prices drop. It allows you get a piece of the company at a cheaper rate. A lot of investors who leverage emotions, start to panic and sell their stocks when there is a price drop, forgetting that there will be a price gain soon. Buy when is cheap or the market is bleeding and sell when the market is booming.
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Spending all your money
New investors often get excited about the stock market and invest all the money for their portfolio within the first few days. The results are careless purchases and a lack of liquidity if prices drop. You should put money into your trading account on a regular basis, but always leave some of it there – for the times, when stock prices drop to allow you buy more stocks at a cheaper cost
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Selling all your stocks in a crash
The reality is the next stock market crash is coming. However, we’ve already survived quite a few crashes in recent time. That means: If the stock market crashes, stay cool. It will recover. What won’t recover are your savings if you sell all your shares at a time when everyone else is doing the same. It’s hard, but you should always follow the old rule: invest slowly, sell slowly.
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Putting all eggs in one basket
Anyone who discovers a promising industry is tempted to really go for it. Why buy one tech giant when you can buy three? The problem is, what do you do if the industry collapses? In that case the value of your portfolio can quickly evaporate. That’s why you need to diversify – to invest in many different areas at the same time. Even if one of them temporarily crashes, it won’t hurt you too much. And remember: If the value of a stock drops, it’s a good reason to buy more.
3 Smart Ways to Give Your Child/Ward The Best Education
Imagine the smile on the face of your child, looking directly at you, and wearing that beautiful school graduation gown- That look is priceless! One of the ultimate goals of most parents is to give their children/wards the best of education. The best education to an extent adds the icing on the cake to the parenting career. Sadly factors such as rising school fees, inflation, and general economic situation of a country always pose as obstacles to this great plan that parents have for their children.
Despite these factors, it is still possible to give your children the best education if well planned. We have listed 3 smarts ways every parent can plan for their children’s education, to guarantee them seeing their children in the beautiful graduation gown.
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Start early
Planning for your child’s education is a long-term financial goal. The best time to start planning for your child’s future needs is when he or she is born. Assuming your child will go to the University at the age of 18, you will have nearly two decades to create the right-sized fund for your child’s need. The effect of compounded growth will allow you to achieve this goal with small, monthly contributions.
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Diligently choose the right school
Children will mostly likely spend more time in school than at home, parents should be diligent when choosing a school for their children/ward.
The type of school a child/ward goes will have a great impact in the life of the child/ward. Before you settle for a school, you should consider the vision, mission and culture of the school to see if it they align with what you want for your child. You also need to fact check from people associated with that school, such as parents who already have their children enrolled in that school to hear what they have to say about the school
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Set up an EduTrust
An edutrust is a legal agreement where money is put aside for the sole purpose of educating the children, irrespective of whatever, untold events the future holds. It is aimed at assisting parents and guardians in securing uninterrupted education for their child(ren) or ward(s).
As a parent, this trust enables you to provide for the education of named beneficiaries. The standard, level of education is determined by you, subject to adequacy of funds in the Trust account. The Trust can comprise of a lifestyle component to provide for other needs of beneficiaries such as vacations, excursions, school trips etc.
We will love to celebrate you and your kids as they graduate from their dream schools. Get started on making that graduation smile a reality today by setting up an education trust for your child here
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ARM Mutual Fund: Fact Sheet (July 2020)
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Best Stock trading tips for investing in Nigeria by Warren Buffet
(This article is based on Warren Buffett’s annual investment letters to his shareholders )
Who is Warren Buffet?
Most investors know who Warren Buffet is, but for the benefit of those who don’t, here is a short bio of him:
Warren Buffett is currently the in the world. He is widely regarded as one of the most successful investors of all time. He is the CEO of Berkshire Hathaway, a company that oversees more than 60 companies, including insurer Geico, battery maker Duracell and restaurant chain Dairy Queen.
Aside from being an investor, he is also a philanthropist he planed to donate over 99% of his wealth. So far he has given more than $41 billion away. In 2010, he and Bill Gates launched the Giving Pledge, asking billionaires to commit to donating half their wealth to charitable causes.
Warren delved into investment an early age, he bought his first stock at age 11 and first filed taxes at age 13.
What can we learn from Warren Buffett?
Invest for the long term
Buffet always encourage investors to see themselves as a part of the company they are investing in, this will make them stick longer with the company, resulting to long term investment.
In his 1996 annual letter to his shareholders, Buffet wrote, “Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily understandable business whose earnings are virtually certain to be materially higher 5, 10, and 20 years from now.”
Buffet advises investors to invest in companies with strong fundamentals and keep their eyes on the long term. He wrote, “Holding for the long term is key, and the best way to accumulate wealth. If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes”
Investigate the company you are buying into
Warren Buffett has a famous quote: “Never invest in a business you cannot understand.” This simply means that before you invest in any company, go deeper in knowing more and give it a detailed evaluation.
In his 1996 letter to shareholders, he wrote, “What an investor needs is the ability to correctly evaluate selected businesses. Note that word “selected”: You don’t have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital.”
In his investment journey, Buffett has heavily invested in financial stocks like Wells Fargo and consumer discretionary stocks like Coca-Cola.
Although he was skeptical about the tech stocks for a large part of his career, on May 15, 2016, he took a giant leap by purchasing 9,811,747 shares of Apple for $108.99 a share, making his first foray into the tech world.
Don’t buy into the market’s emotionalism
According to Buffett, it’s important to stay calm as an investor.
He wrote in his letter, “Remember that the stock market is a manic depressive. Markets will rise and fall for many reasons, but most of the declines will be relatively temporary. It’s important not to be manic depressive along with the markets. You do this by keeping your eye on the future and ignoring short-term market gyrations.”
Take advantage of opportunities
“Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons.” Buffett wrote in his 2016 shareholder letter.
As an investor, you should always stick to the principle of buying low and selling high. With patience you’ll have plenty of opportunities to purchase great stocks at bargain-basement prices, as it’s currently happening with a number of stocks affected by the COVID-19 pandemic. This is the period regarded as the best time to buy stocks.
Excited by all the words of wisdom by Warren? take advantage of current realities by investing in some of the best stocks around the world? Download ARM Stocktrade app today to start investing. You can open a stocktrade account at www.armstocktrade.com and start investing.
What you need to know about Ethical investing
Ethical investing is a type of investing process that considers an investor’s personal principles – could be social, moral, religious, political, or otherwise, before making investment decisions.
At ARM, the overarching focus remains to help everyone regardless of their beliefs or principles realise their ambitions – and so, to support anyone seeking to embark on ethical investing, the ARM Ethical Fund was specially designed.
What is the ARM Ethical Fund?
The ARM Ethical Fund is a mutual fund which invests in Sha’ria compliance securities to help investors invest in line with their religious morals or beliefs. This open-ended mutual fund with a flexible entry and exit scheme, provides long term capital preservation as well as competitive returns amongst other benefits in a professionally managed investment scheme. It is ideal for investing towards medium to long-term goals due to its exposure to equities which is a volatile instrument.
What it invests in and who it is for
The ARM Ethical Fund invests in shares, real estate, fixed income and other Islamic instruments.
The fund will not invest in any company that involves interest-bearing transactions, gambling, alcohol and tobacco, arms and ammunition or adult entertainment.
To ensure that the fund trades in line with Islamic principles, a Sha’ria advisory board chaired by influential Muslim individuals must approve of the investment portfolio before investments are carried out.
While the ARM Ethical Fund invests in Sharia compliance securities, it is open to every individual who is looking to protect his/her religious morals and beliefs.
Fund performance in the past five years
The ARM Ethical Fund has performed positively in the last five (5) years.
The coronavirus pandemic has also left the performance of the fund in the positive zone. Further to the long-term view of the funds, the current status of the stock market supports future growth.
3 benefits of the ARM Ethical Fund
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Achieve long-term capital growth
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Invest according to core Islamic values and beliefs
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Open-ended which simply means that you can sell or buy into the Fund whenever they want.
Click here to sign up for the ARM Ethical Fund or send an email with subject ‘Ethical Fund’ to [email protected] and we’ll get in touch with you with further information.