Covid-19: Impact on the Financial Market

The events of the past quarter compounded by the global CoronaVirus (COVID-19) crisis and its massive impact on financial markets in the short to medium term brings a feeling of déjà vu. To reduce the spread of the virus, nations have restricted trade, travel, and in extreme cases closed their borders. Amidst all this, an oil price war between Saudi Arabia and Russia has pushed the price of crude oil below $35 per barrel.

These two factors have had an adverse impact on global economies; with governments around the world including the Nigerian government, responding with the introduction of stimulus packages to keep their economies from slipping into recession.

Despite any negative sentiments attached to current events, it is worthy of note that markets have a good record of overcoming global economic shocks as seen below:

  • In early 2003, a similar pandemic called “the Severe Acute Respiratory Syndrome” or (SARS) broke out in China and was not fully contained until eight months after the initial outbreak. However, the Chinese economy recovered and recorded a GDP growth of 10% in Q3 2003.
  • In 2015, Nigeria, like other global economies faced an economic crisis. The equity market declined 17% as global oil prices plunged to below $40 per barrel. However, investors who took a longer-term view during the crisis have fared better as markets have recovered from their lows.

The key takeaways:

  • The markets have a very good record of recovering from economic shocks.
  • We cannot time the market by consistently calling the bottom or the top, but we benefit most when we systematically invest over the long term. Market downturns provoke extreme reactions – sell late in a bear market or too early when the market turns – and this is not any different.

Way Forward for investors

From our experience, our conclusion is that it remains profitable to invest in financial markets with a long-term view.

The graph below shows the performance of the Nigerian Stock Exchange (NSE) All Share Index from 2010 to date. Whilst the asset class has under-performed over short periods, we caution investors not to write off this asset class as the volatility creates opportunities for strong positive performance over the long-term. Investors have also profited by applying rigorous research in stock selection and by maintaining a disciplined investment process. Similarly, investing in fixed income securities over the medium term has provided a good hedge against inflation as the Federal Government securities over the last 5 years delivered average annual returns of 19%, well in excess of inflation.

For investors with an above average risk appetite, there are opportunities in specific sectors of the economy such as Telecoms, where companies earning capacity will not be significantly impacted by current events, and Consumer Goods where there are companies that have the ability to withstand market shocks. Furthermore, asset prices have declined significantly to record low levels, creating compelling entry prices as new year lows are redefined. Dividend yields remain attractive across a number of companies that have maintained strong fundamentals. (e.g. Tier-1 banking names such Zenith Bank and Guaranty Trust Bank).

For investors with lower risk appetite, we would advise on a re-allocation from risky assets to money market- based investments (such ARM Money Market Fund) because of their potential for steady and competitive returns in the short term.

Final words

Although we should expect substantial market volatility in the short term, investors who are able to maintain discipline and take a longer-term horizon to investing would make it through the down cycle to enjoy the benefits of an inevitable rebound.

Our customer experience team is available to guide you through appropriate investment decisions suitable to your need. We remain focused on navigating the market environment, with the aim to keep your investment on track toward reaching your long-term investment goals.

Please maintain all the rules of safety in this period, we wish you good health.

Tough Times don’t Last, But Tough People do…

Are you an investor trying to keep your head above the waters of this economy?

Our smart investment tips are designed to help you make sound investment decisions in this tough economic clime. Please see below;

  1. Borrow less

Think twice about taking on more debt, focus on business opportunities that do not require more capital than you can afford.

  1. Learn Something New

There just might be a more rewarding way to go about your business. Make it a goal to learn something. For instance, you might want to look up the difference between mutual funds and bonds.

  1. Master your emotions

Don’t make your most important decisions under duress. Think about it again and again, be sure it is the wise financial move to make.

  1. Diversify your investments

Spread your risk by investing in different asset classes (equities, property, commodities, bonds and cash)

  1. Reduce operational costs

Reduce your overhead as much as possible. A good way to do this is to consolidate your brokerage accounts so you can negotiate lower management fee.

  1. Get quality Financial advice

Be careful who you are listening to and from whom you are getting investment advice. Get informed quality financial advice from ARM Securities.

  1. Create multiple streams of income

Scarcity and inflation are opportunities in disguise, find that thing you can exchange for value or engage in a passive investment such as a Money Market Fund.

  1. Avoid volatile sectors

A good risk appetite might not favour you at a time like this. Channel your resources to sectors that deal in goods and services that cater to necessities of living.

  1. Build strong relationships

Build relationships that ensure you are in a network of people who challenge your thinking and provide a well of valuable information from which you can tap.

  1. Have an emergency fund

It is important to stay liquid at a time like this. Do not invest all your money, leave something to fall back on.

  1. Invest in income producing assets

This is a good time to build a dividend portfolio. However, not all assets are income producing. Contact ARM Securities for tips on how to build a profitable portfolio.

  1. Creatively solve problems

Not all challenges require money to solve them. Look within before you look without, there just might be an efficient but less expensive way to solve that problem.

Do you require expert financial advice or would like to know more about our investment portfolio management and stockbroking services, talk to us today.

Financial Planning with Raphael: Considering Foreign Currency As An Investment

The Coronavirus pandemic has had an adverse effect on major economies worldwide. As countries have closed their borders and restricted non-essential travel, this development has led to an impactful decrease in the global demand for crude oil and, subsequently, a correlating fall in crude oil prices. Furthermore, an ongoing oil price war led by Saudi Arabia and Russia has resulted in historic increases in unwelcome supply and a further catalyst of the decline in oil prices.

With the bulk of Nigeria’s foreign reserves stemming from the exportation of crude oil, the global decline in oil prices has strongly affected confidence in the country’s economy and currency. The flight-to-safety phenomenon has led foreign portfolio investors to exit their investments in the Nigerian – a move which has led to the depletion in Nigeria’s already precarious foreign reserves. In February 2020, Nigeria’s FX reserves declined to $36.36 billion, a 4.5% decline from the reserves’ January position at $38.1 billion.

Consequently, in the past few weeks, there has been substantial demand in the US Dollar as investors have sought to convert their Naira savings as a hedge for the growing expectation that there will be a deep devaluation of the Naira, even amidst the CBN’s denials that there are no plans for a devaluation.

However, on March 20th, 2020, as a result of steep declines in crude oil prices, the CBN issued a circular which effectively established a convergence of the multiple exchange rates for the naira. Nigeria will now observe a single exchange rate for all transactions. At both the Bureau De Change and Import & Export Window (I&E), the new end-user price has moved from N366.7 / $1 to N380.2 / $1. The CBN said that the decision to peg the exchange rate of the naira at N380 / $1 is not a devaluation of the currency but, rather, an adjustment of the rate. However, many still believe that a further devaluation is to be expected.

Amidst the turmoil and panic, the following questions must be considered:

  • What if there is no further devaluation of the Naira?
  • What happens if the pandemic is resolved sooner than later?
  • What will happen if the oil price war ceases and oil prices rise back up?

Unfortunately, these questions can only be answered with certainty in hindsight. However, the savvy investor must ensure that, regardless of the outcome, their savings remain protected and unsystematic risks remain low. Following the Financial Planning Principle for the effective management of your funds, investments in foreign currencies should be strongly considered for the following reasons:

  1. Diversification of the potential risks associated with solely holding the Naira currency
  2. Current and future Dollar-denominated obligations
  3. Hedge as a means of protection against the depreciation or devaluation of the Naira

Opportunities to look into

In achieving the objectives above while gaining competitive returns, kindly see below the following opportunities for investment:

  • ARM Eurobond Mutual Fund – A US dollar-denominated mutual fund that is authorized to invest in Eurobonds floated by the Federal Government of Nigeria and highly rated Nigerian corporates;
  • Eurobond investments– ARM Investment Managers offer investors access to invest directly in domestically issued Eurobonds; and
  • ARM Stocktrade– ARM’s proprietary mobile trading platform that provides access to trade domestic and international equities listed on the largest stock exchanges in the world.

6 books to read on money and investing during the quarantine

Life as you know it has been paused due to the current Corona Virus pandemic. You, like many others, have been confined to your home with limited movement for the next couple of weeks; but how do you spend this time wisely?

We recommend reading!

Here are some books on personal finance and investment you should read while at home to help you manage your finances better.

The Intelligent Investor by Benjamin Graham

Referred to as the godfather of investing, Benjamin Graham takes a different approach to investing in this book which we’re sure you’ll enjoy. Warren Buffet calls this “the best book on investing you’ll ever read”.

 

A Random Walk Down Wall Street by Burton Malkiel

This is a good one for beginners as Malkiel includes handy definitions of investment terms as it applies to various investment strategies directed toward different stages in life. In this book, he lays emphasis on long-term investments rather than get-rich-quick schemes including how to avoid common mistakes.

Thinking, Fast and Slow by Daniel Kahneman

This book isn’t just about investment. This Psychology professor delves into how one’s thought processes can affect investment success. Within the book, Kahneman explains how to identify your biases and lock them out so as to make rational, clear and analytical investment decisions.

Your Money or Your Life by Vicki Robin

This book is what you need to learn the art of living within your means by changing your habits and enjoying life. It helps you understand how to deal with this thing called ‘Budgeting’.

Rich Dad, Poor Dad by Robert Kiyosaki

‘Rich Dad Poor Dad: What the Rich teach their kids about money that the poor and middle class do not’ is touted as one of the bestselling personal finance books ever.

In this book, Kiyosaki uses his childhood recollections of his not-so-wealthy father and the father of his friend who was one of the richest residents in Hawaii to drive home points about money. The comparison shows how best to manage your money or lack of it, as well as helping your kids to do the same. Kiyosaki in this book posits that not all debt is bad, and you can build wealth even if you don’t currently have a staggering income.

The Broke Millennial by Erin Lowry

This book offers a fun, relatable take on managing money for beginners. Targeted towards 20-30-somethings who want to learn about finances, Lowry covers tricky, real-life situations involving money and how to deal with the challenges of having or not having enough brings.

Explore the pages of these select books to build your money-management and investing knowledge and then go on to explore www.arminvestmentcenter.com to put what you’ve learnt to practice with a plethora of investment vehicles to suit your every need.

No time like now

Yippee, Pay Day is here again!

Any plans for your money yet? Perhaps bills to sort, items to purchase, investment to fund, Black Friday to save towards and oh, how can we forget Christmas shopping ahead of the festivities or even travel plans…

Don’t forget the importance of planning, prioritizing and budgeting in the scheme of things.

Remember to:

  • Only buy what you need during the Black Friday sales
  • Sort your important bills
  • Make your Christmas shopping list now
  • Book your flight/bus ticket now before fares get hiked
  • Put some money in your investment a.k.a emergency fund
  • Give yourself a treat (You deserve it)

As always, our convenient payment channels take the hassles of investing off you as you are able to fund your investment from the comfort of your home at the swipe of your internet-enabled device.

Go ahead and check the status of your prior investments via your Wealth Planner – that convenient online portal that houses all your transactions and in the spirit of benevolence and getting richer, refer people to invest in the ARM Money Market Fund and earn units on your own account.

Got any questions? Please get in touch via [email protected] or 0700 CALL ARM and we’ll be pleased to assist you.

No time like now to kick your plans for the rest of the year into motion.

Personal Financial Planning with Raphael- Principles of savings

Joe walked into the room and greeted Ade his friend, “O boy I hail o! you no dey even ask of person”

Ade, in a pensive mood, responded, “I just dey o.”

What’s up with you?” said Joe.

“Just worried about how to save for my financial goals and achieve set target Man! It’s just difficult to start up something.” Ade sounded very disturbed. “Each time I tried to save there is always something to spend the funds on and most times I can’t even explain what I spend the funds on and even windfall is not happening”, groaning Ade.

There are two key principles that could help Ade out- First, Ade needs to make it a habit to always have a budget. This would help provide a picture of how he spends every penny /Kobo and then he would be able to decide what he should spend his money on and what he should not. In creating a budget, there is a fixed and variable component. The fixed component is what you must spend on regardless of your situation that is you don’t have any control while the variable component is what you have control over. The trick is to always add the amount you intend to save to the fixed component of your budget. It could be through setting up a direct debit or a standing order with your bank. It goes with the saying that if you don’t see the money you don’t get to spend it.

The second principle is to pay yourself first. This should also be a habit. Make it a habit to always pay yourself 10 to 20% of every cashflow. Always spend what is left after paying yourself and not save what is left after spending. People say there are different demands for the money they earn e.g. external family demands as it always happens in Nigeria but guess what these demands will always be there. I this case everyone will spend whatever is left after saving. You need to understand that you own your goal or your dream and no one else. If you do well or not it is all about you.

Think about an individual that had a job paying N250,000 a month and suddenly lost the job and found another job that pays N100,000. The question is will he survive with the change in condition? The interesting answer to this question is that he will always survive. This speaks to the discipline that is always required when you have a financial goal and you need to save for it. The truth is that you will always survive with what is left when you set something aside. Therefore, savings never kills but helps build a future of financial independence and achieve your dream.

Define your goals today and begin to save or plan for them as we have spelt out in our earlier articles.

Baby Juliet’s Future

When 34-year-old Damola gave birth to her daughter, she felt that her life was finally complete. Baby Juliet was the apple of her mother’s eyes and Damola spared no expense in giving her the very best. As a single parent, it wasn’t easy for Damola to cope with the demands of heading the Customer Service department at work, building her side hustle and raising a child alone, but she faced these responsibilities like a superwoman.

Her friends and family tried to pitch in as often as possible but in the end, the bulk of the work lay with the mother of the child. Soon, Baby Juliet was old enough to go to school and what a rude shock Damola got when school fees, books, lessons and more were calculated. It would be a little cheaper should she opt for just any school, but she needed a school that had a good pedigree and was in close proximity to her office to enable her juggle movements seamlessly. The cost per term for Baby Juliet’s KG class came to N95000 when everything like music lessons, swimming classes, dance classes, books and more were calculated. But Damola wanted the best for her baby so she went with it.

But she eventually did some hard thinking. With each year her baby grew and with each new class she entered, she’ll be required to pay higher fees and maybe enroll in other extra-curricular activities which will definitely make fees much higher. She needed a sustainable plan to keep the level of education she desired for baby Juliet up so she called up her best friend Zara and told her what she had been thinking.

“Zara, I’ve done my math and the way things look, I think I need a good plan in place if I really want my baby to get the Ivy League education I plan for her. Do you know anyone who is an expert in these things?” she asked.

“Don’t think too much Dammy. I think I’ve come across one before. I was reading an article on Bella Naija the other day and this Trust Expert on the column Ask Shade was advising a woman with a similar problem. I think her advice will work for you too.” Zara responded.

“Oh really? What did she suggest to the woman?” Damola asked.

“She asked her to consider getting an Education Trust for her child which will cater to every educational needs of her child to whatever level she so desires. Interestingly, she mentioned that the Trust can also comprise of a lifestyle component to provide for other needs of the child like school trips, excursions or vacations.” Zara responded.

“This has a good ring to it” Damola replied. “What do you think babe? Should I give it a try?” she asked.

“Wait, are you really asking that Dammy? I think you should totally do that and enjoy peace of mind jare. Since me I’m still single and seriously searching, I will just pen it down as something to consider when I finally catch Mr. Right and have our golden baby…haha” Zara said.

“Crazy babe. So Mr. Right is now a fish you want to catch abi” Damola queried playfully…

(The two chat on excitedly about other matters…The End)

Secure your child’s educational future with an Education Trust today, not tomorrow, today!

For 3 consecutive years, our Mutual Funds have outperformed their benchmark

For 3 consecutive years, our Mutual Funds have outperformed their benchmark

In an interview with BusinessDay’s Dolapo Ashiru, Kai Orga, Acting Managing Director at ARM Investment Managers, speaks on various issues regarding the fund management sector of the economy and how the ARM Mutual Funds have performed over time.

Interviewer: How are you leveraging on technology via digital & mobile platforms to further increase your reach and serve clients better?

Kai Orga: In cognizance of the fact that digital is the future, ARM Investment Managers started on a journey a few years ago to overhaul our platforms, systems, and processes to make them more customer friendly; improve our service delivery and reduce transaction turnaround times. We are implementing an omni-channel approach whereby solutions delivered are consistent across the various platforms, facilitated by a harmonized customer service.

Today, we have multiple channels to serve our clients – a web client portal, mobile application, Quickteller, GT USSD, E-Bills Pay, GT Collections, Shortcode to name a few, which are all being utilised by clients to execute transactions with us. We are able to onboard new clients easily and in real-time; and an integrated mobile application is also underway, as we make a conscious effort to move away from having multiple applications operating in silos. Adding to our portfolio of channels, we launched PayDay Investor last year, an investment application that enables our customers to invest seamlessly in the ARM Money Market Fund while providing convenience, and excellent user experience to our customers.

We are however mindful of the inherent risks associated with financial technology and the need to ensure that customer data is kept safe and managed appropriately, therefore, we have strengthened our risk management processes by including IT security as a focus area within our risk management framework.

Interviewer: What are your views on the emergence of Fintech companies and do you feel threatened by their emergence?

Kai Orga: The emergence of Fintech companies has paved way for technical innovation in the finance and investment industry and has given rise to simpler and more customer-focused processes and solutions utilizing faster and better technology as well as harnessing customer data. As a firm that is keen to embrace change, we do not view their emergence as a threat, but rather as an opportunity to learn, adapt and collaborate towards offering better services to our clients.

What is driving patronage for Fund managers especially from the retail client segment?

Kai Orga: The main drivers of patronage are returns and diversification. Retail clients have numerous options for saving and investing their funds; however, the service fund managers offer over and above banks, stockbrokers and other savings and investment platforms is the ability to invest in multiple asset classes and have their investments professionally and actively managed, even with very minimal funds. Through fund management vehicles, investors are exposed to equities, fixed income, money market instruments, real estate and even alternative investments such as infrastructure. Clients are even able to gain access to offshore investment vehicles.

Interviewer: What is the ratio of Retail Vs Institutional Vs HNI clients in the fund management space?

Kai Orga: The assets under management of ARM Investment Managers is currently split almost equally among the 3 investor types – i.e. retail investors, high network individuals and institutional clients. It is difficult to estimate the split for the industry as a whole; however, there is a concerted effort by fund managers to grow their retail products.

Interviewer: What is the average return on portfolio like in the various Asset classes?

Kai Orga: In 2018, bond and Treasury bills yields were 14.16% and 13.92% on average, respectively. As for equities, the Nigerian Stock Exchange (NSE) which comprises all listed securities in Nigeria had a negative return of 17.8% in 2018, after a positive return on 42.3% in 2017. The stock market in Nigeria is especially very volatile, which means there is significant opportunity for returns but the accompanying risk is also high. Stock selection is key when investing in equities as some specific stocks have a better performance history and are better able to withstand shocks in the market.

Interviewer: In advising clients what determines your portfolio structure/Asset mix for the different categories of clients?

Kai Orga: Our financial advisers profile clients majorly based on three categories being: The clients’ investment objective; risk profile (how much risk the client is willing to take in order to achieve returns); investment horizon (how long the funds are available for investment). All of these affect the investment advice given as some investments have a minimum holding period while some investments are very risky and should only be undertaken by individuals that have enough assets to sustain them should the investment turn bad. We also carry out an assessment of the clients’ peculiar circumstances – that is their age, marital status, number of dependents, income and net-worth, which feeds into our investment advice. One other important factor in structuring client portfolios is the performance of the various asset classes (both current and outlook) as we always strive to ensure optimal returns for our clients.

Interviewer: What are the current challenges being faced by fund managers in Nigeria? And how are you mitigating against those challenges?

Kai Orga: The Nigerian financial market is still relatively small with a lot of potential for growth. The main challenges we face as fund managers are around the implementation of ethical standards and effective corporate governance, as these factors ultimately have a major impact on the integrity of our financial market. Another key challenge is the depth of the market. While the industry has come a long way, low financial literacy and awareness has hindered growth of the industry. There is only so much development that can take place in terms of developing new products and asset classes unless we have a population that is ready to accept this. ARM Investment Managers does its bit by working with the regulators to improve financial literacy through series of financial planning presentations to targeted audiences.

Interviewer: How challenging is it to assess risk in the Nigerian Financial markets given our level of development and data availability?

Kai Orga: The Nigerian financial market is still relatively small but with a lot of potential for growth and development. The regulators have done a lot of work in terms of investor protection, and this is helping to reduce the inherent risks in the market. This is the reason Fund Managers’ investment universe is limited to listed companies and securities that are well regulated and monitored. However, while the non-bank financial services industry has come a long way, we still have challenges and inefficiencies surrounding transparency and disclosures as well as unfriendly practices. Furthermore, there is still a certain element of market risk that cannot be eradicated even in developed countries.

Interviewer: Which of your various mutual funds has received the most subscription from your clients and what reasons are given for this selection?

Kai Orga: Most Nigerian investors are risk-averse, so products in the fixed income space which are capital guaranteed and provide a steady stream of income are usually preferred. Consequently, the ARM Money Market Fund is by far the highest subscribed fund in terms of assets under management and customer base.

Interviewer: Can you give us an idea of your various mutual funds and their performance?

Kai Orga: ARM Investment Managers currently manages 4 different mutual funds: Aggressive Growth Fund, Discovery Fund, Ethical Fund, and Money Market Fund. Each fund has its own risk and returns objectives which ultimately determines the required asset class allocation to meet those objectives. The ARM Money Market Fund is a risk-free fund which guarantees investors’ capital while the Aggressive Growth Fund is our riskiest fund on account of its high allocation to stocks (80-100%).

The ARM Mutual Funds usually outperforms their respective benchmarks as well as other Funds in the industry with similar asset allocation profiles. For instance, ARM Money Market Fund is currently yielding 13.74% as of end of March 2019.

ARM Mutual Funds

  • The ARM Discovery Fund is an investment that provides capital growth primarily through investments in equity, real estate and fixed income securities in the Nigerian market. The Fund Manager maintains a minimum equity position of 40% and a maximum of 65%. The Fund is suitable for investors who have a moderate risk tolerance level. The minimum investment is N10,000 and additional investment is N5,000.
  • The ARM Aggressive Growth Fund invests in stocks (80%-100% maximum) and money market instruments (0%-20% minimum). It is suitable for high-risk takers who expect capital appreciation over the long term. The minimum investment is N50,000 and additional investment is N10,000.
  • The ARM Ethical Fund invests in shares of Shari’ah compliant companies quoted on the Nigerian Stock Exchange, real estate and other investments compliant with Islamic Finance. Certain sectors that hold stocks such as Tobacco, Breweries, and Entertainment are excluded from the Fund’s portfolio. It is suitable for investors who would like to invest according to their moral beliefs and also wish to achieve long-term capital growth. The minimum investment is N10,000 and additional investment is 5,000.
  • The ARM Money Market Fund (MMF) is an open-ended fund that invests in money market securities such as Bankers’ Acceptances, Certificates of Deposits, Commercial Papers, Short term debt securities issued or guaranteed by any Federal or State Government of Nigeria (such as Treasury Bills). The Fund is structured to preserve capital invested and provide income which is payable quarterly. The minimum investment is N1,000

For 3 consecutive years, our mutual funds have outperformed their benchmark brief description of the different funds and their performance over the last 3 years is as stated below:

Year Performance Measure 2016 2017 2018 3-year Average Fund Performance Benchmark 3-year Average Benchmark Performance
Aggressive Growth Fund Fund Return 4.16% 46.79% -8.57% 14.13% NSE 100% 6.11%
Discovery Fund Fund Return 4.92% 34.66% -5.49% 11.36% NSE:T-bills

60:40%

 10.35%
Ethical Fund Fund Return 2.79% 22.18% 3.53% 9.50% Lotus: Skye shelter: Osun Sukuk

50:20:30%

 9.64%
Money Market Fund Effective Yield 9.92%  17.19% 12.98% 13.46% 91-day T-bill 13.03%

 

Interviewer: What determines the inclusion of an asset class and the weight assigned to it in a Fund?

Kai Orga: Each Fund registered with the Securities and Exchange Commission (SEC) has a trust deed which clearly states its risk and return objectives, as well as the asset classes the Fund can invest in and the Fund’s allocation to the various asset classes (ranges). The actual weights assigned to the asset classes however is determined by the fund manager’s assessment of the market and expectations of future performance.

Interviewer: What kind of Equities are included in your equity fund and the criteria for their inclusion or removal?

Kai Orga: ARM invests primarily in blue-chip securities that have demonstrated the ability to provide steady returns over a period of time and also have high liquidity (that is stocks that are actively traded on the Stock Exchange). We invest in securities that we believe are priced below what we consider to be their true business value, to gain significant returns for investors when the price of the stocks rise to reflect the true value of the underlying company. In the same vein, we tend to sell stocks that we believe to be overpriced.

Interviewer: Where do you see the fund management industry in the next 5 years?

Kai Orga: We are confident that the regulators’ actions and efforts will ultimately serve as an impetus for faster growth in years to come. We see an increased interest in securities trading and in mutual fund products as investors become more financially aware, which should hopefully lead to the market becoming more dynamic with the inclusion of more asset classes and more securities on the Exchange. This, in turn, is expected to lead to increased competitiveness on the part of fund managers as we strive to improve our service delivery, leveraging on all available technology, and to focus on developing innovative products that resonate with our target market.

 

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4 months and it begins again…

4 months and it begins again…

Wasn’t it just like yesterday you brought your children home for the second term school vacation and yet they are back to school in the blink of an eye? Of course you know what going back to school entails… School fees, new socks and singlets, maybe new lunch boxes, new stationery and a few more.

But in 4 months’ time, these expenses will look like child’s play in the face of the new school year responsibilities. In September 2019, your child could be in a new class which means bigger expenses

As is normal with many schools, a new class will require entirely new set of books, often new school uniforms, higher school fees, lesson fees, school bus, after school service and those other seemingly small fees that eventually add up. In short, in September, if you are not prepared, you’ll be up to your neck in expense.

That is why this is your big reminder to start preparing ahead of time. As a parent/guardian, now that you’ve paid the third term school fees for your child/ward, this is the time to draw up a mock list of what you could be spending money on ahead of September school year.

Here’s a guide:

  • You can also go ahead and find out the school fees and additional fees pupils/students in the class your child (ren) will be joining in the new school year pay. Also find out books they will require – have these listed giving room for any unexpected hike.
  • When that list is ready, find out cost of the items and pen them down. Now, go ahead and do the math to see how much you may need to foot the bill when the time comes.
  • You now have a tentative sum to work with. Take the next crucial step and start investing diligently towards it.

By the time four months comes around, you should have enough money plus interest accrued to sort school expenses without breaking a sweat.

Start saving for September at www.arminvestmentcenter.com

The post 4 months and it begins again… appeared first on Realising Ambitions.

How to deal with the inevitable expenses of 2019

Some things remain constant with each year while some new situations welcome themselves regardless of our level of preparedness. Here are some things that will likely gulp your money in 2019 apart from your daily home expenses.

 

School fees – If you’re a parent, you must know that you will pay school fees thrice this year. The last one in September being of a bigger sum because your child will be entering a new class which will demand some financial responsibilities.

Valentine’s Day – February still has 14th on it and the world will mark Valentine’s Day. Unless you are a Valentine’s Day Grinch with nobody to gift, you’ll be spending some money this season

Elections – This is the year of elections and as a Nigerian, you must remember that uncertainty looms. Instead of waiting to be thrust into the unknown, it is wise to make plans to ensure that however the tides turn, you and your family remain largely unaffected.

Easter and Eid celebrations – Whether Christian or Muslim, you will be marking these special seasons in 2019 and they will require some expenses. Knowing and planning is the surest way to have a joyous celebration without going broke afterwards.

Special birthdays – Be it that of your spouse, child, friend, parent or relatives – birthdays are those celebrations that we don’t count but often leave a hole in our pockets if we don’t budget for them.

Rent – This is an inevitable expense unless you currently live in your own home. Plan for it as well.

Big celebrations – If this is the year you plan to wed, put a down payment on your first home or buy your first car amongst other big celebrations, then it is an inevitable expense for you – one that requires planning. The first month of the year is the right time to start planning towards these big steps and the best investment vehicle is your best option to being financially prepared for them.

Latest brand of gadgets – iPhone may announce an upgrade to their latest version as can other companies. Be prepared for this announcement and decide ahead of time if you really need it. If yes, now is the time to start investing towards it.

The unexpected – Emergency car breakdown, hospital bills, last-minute travel expenses… name it. Because you know that life can throw you an unexpected curveball at any point, it is wise you have an emergency fund somewhere for the just-in-case moment.

Discounts and deals – With every celebration, businesses offer you deals and discounts. Expect no less in 2019 and brace yourself for them. Whether it is Easter deals, Black Friday discounts, End of the year sales – expect it and plan for or against it.

Christmas – Oh no, it’s not too early to recognize that Christmas gulps a good amount of money and can leave many accounts red. But not if you invest early towards it. Did you know that investing as little as N1000 every other day this year can have you balling through Christmas in the lifestyle you desire? Think about it.

2019 can be rosy for you if you start early to plan for the inevitable and invest appropriately to tend to them.

 

Meet all your 2019 expenses by investing towards them starting now. Check out investment options at www.arminvestmentcenter.com

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Source: Blog