Investors have been advised to be careful in choosing their portfolio managers to ensure that their resources are entrusted with credible, efficient and well capitalised operators.
Chief Executive Officer, Central Securities Clearing System (CSCS) KyariBukar who gave this advice in Lagos during the Finance Correspondents Association of Nigeria (FICAN) bi-monthly forum hosted by CSCS said investors needed to be fully informed about the market and companies where they are investing their money.
Kyari, who spoke on the theme: ‘Role of Central Securities Clearing System in The Nation’s Financial Sector’ said that the most important thing for a market like this is to have an informed investor, adding that investors needed to be informed for them to exercise their choices. “There is need to enlighten investors to enable them make the right choices in their investment for the future” he added.
He said that there was need for investors to regularly check their accounts with the CSCS, as such would update them on the performance and position of their investments with brokers.
He said that the automation of brokerage business would go a long way to reduce operation risk, stressing that if all system becomes automated we will achieve efficiency; error reduction and it might result to reduction in cost operation.
“The most important thing is that investors should be in control of their money or go for collective investment scheme.
Investors still need to beware and invest in portfolio managers that are credible, efficient and have all the necessary capital to be in the position to sale their assets,” he said.
the CSCS boss further said that with the Nigerian Stock Exchange (NSE) trading automation system both the big and small operators have gone retail, meaning that they can accommodate both big and small investors shares
after getting their processes fully automated.
“Previously, transactions were in large volume, brokers may not efficiently service accounts of investors with smaller volume. But with automation of operations, some of the big stockbrokers have through automated system, realised that servicing the customer, whether they have N1, 000 or N10 billion, is usually the same. Stock brokers now require very little efforts in servicing the investors. There must be a code that the industry must develop to serve all investors,” he said.