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Mutual Funds - Investment (3) - Nairaland

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Top 10 Mutual Fund Managers In Nigeria / Mutual Funds In Nigeria: Please Share Your Experience / Best Nigerian Mutual Funds To Invest In? (1) (2) (3) (4)

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Re: Mutual Funds by carpenter(m): 6:42am On Oct 24, 2014
Re: Mutual Funds by ifyalways(f): 8:30pm On Oct 25, 2014
Re: Mutual Funds by austine4real(m): 8:53pm On Oct 25, 2014
ernie4life:
get this list compiled will take time because I want to give you full details of each. so please exercise patients with me
plz can u help me /teach me hw am goin 2 snd em d mail av been tryn 4 a month i always c message sndin failed i dnt knw y
Re: Mutual Funds by Yem0350: 4:24pm On Oct 26, 2014
Is Permanent voters' card accepted for KGIF subscription and also redemption?
Re: Mutual Funds by ernie4life(m): 5:48pm On Oct 26, 2014
austine4real:
plz can u help me /teach me hw am goin 2 snd em d mail av been tryn 4 a month i always c message sndin failed i dnt knw y

drop ur mail I will send to u
Re: Mutual Funds by austine4real(m): 7:42am On Oct 27, 2014
ernie4life:


drop ur mail I will send to u
tnx bro austineray123@gmail.com
Re: Mutual Funds by carpenter(m): 11:32am On Oct 28, 2014
Re: Mutual Funds by carpenter(m): 3:51pm On Oct 28, 2014
@Ernie

I guess this article explains my "nothing is guaranteed" clause.

The NDIC insures money in the bank but sincerely, they do a terrible job at it (only a mere 500,000 naira is insured per account the last time I checked). However, as far as Money Market Funds (MMFs) are concerned, you are at the mercy of companies just like you are if you picked your stocks on your own.

http://consumerist.com/2009/01/03/whats-the-difference-between-money-market-accounts-and-money-market-funds/
Re: Mutual Funds by ernie4life(m): 7:27pm On Oct 28, 2014
carpenter:
@Ernie

I guess this article explains my "nothing is guaranteed" clause.

The NDIC insures money in the bank but sincerely, they do a terrible job at it (only a mere 500,000 naira is insured per account the last time I checked). However, as far as Money Market Funds (MMFs) are concerned, you are at the mercy of companies just like you are if you picked your stocks on your own.

http://consumerist.com/2009/01/03/whatsApplication closes on the 20th of October 2014

Click this link to apply

https://krb-xjobs.brassring.com/tgwebhost/jobdetails.aspx?partnerid=30030&siteid=5564&jobid=698298-the-difference-between-money-market-accounts-and-money-market-funds/

you are talking in a situation the investment house folds up, yes that's true, that's why you should make sure any investment house you are dealing with is regulated by SEC.
another silent point that most people neglect is tax, yes tax, this is the major reason that many financial institutions fold, the do investments, the don't charge the clients tax, so when CBN comes to audit there account the end up owing more than the can pay, this leads to folding up,
and one last thing, shine your eyes when u are offered mouth watering interest rates
Re: Mutual Funds by ernie4life(m): 4:35am On Oct 31, 2014
I need someone with first hand experience on ARM mutual funds to tells us some of there packages with details so we could analyse it.
Re: Mutual Funds by obiak4(m): 9:34am On Oct 31, 2014
ernie4life:
I need someone with first hand experience on ARM mutual funds to tells us some of there packages with details so we could analyse it.
if cbn will increase 91days to 14 or more perc. am in wil buy tbil and d politikin z very determinant factor
Re: Mutual Funds by sunboy(m): 10:21am On Nov 01, 2014
ernie4life:
I need someone with first hand experience on ARM mutual funds to tells us some of there packages with details so we could analyse it.

Well I opened their money market fund about a month ago with 100k, they pay 11% and pay quarterly. The manager I met had advice me to go for that fund because it is principal guaranteed. I notice some money are entering bon a daily basis which I'm not sure of the figures but last time I checked it rose to 100,600+ ,and still doesn't affect the interest.
Re: Mutual Funds by ernie4life(m): 4:10pm On Nov 01, 2014
sunboy:


Well I opened their money market fund about a month ago with 100k, they pay 11% and pay quarterly. The manager I met had advice me to go for that fund because it is principal guaranteed. I notice some money are entering bon a daily basis which I'm not sure of the figures but last time I checked it rose to 100,600+ ,and still doesn't affect the interest.

thanks for the response, do the charge withholding tax on the investment?
Re: Mutual Funds by red101(f): 10:13pm On Nov 01, 2014
carpenter:
Here is the newsletter for September for FBN Money Market Fund

http://www.fbncapital.com/docs/default-source/fbn-money-market-fund-fact-sheets/fbn-money-market-fund-factsheet---september-2014.pdf?sfvrsn=2

Hi Carpenter and Ernie4life, what do you suggest for someone living abroad who knows absolutely nothing about the market in Nigeria but wants to participate.
Re: Mutual Funds by ernie4life(m): 2:57am On Nov 02, 2014
red101:


Hi Carpenter and Ernie4life, what do you suggest for someone living abroad who knows absolutely nothing about the market in Nigeria but wants to participate.

first you need to do a lot of reading and research before you invest so that you can be sure of what you are doing, depending on product of interest, I believe all the funds have information you could read online that would be of great help, you could still verify what ever information you get through this thread since we have some people with first hand experience on some of the funds,

@ carpenter what do you think?

1 Like

Re: Mutual Funds by carpenter(m): 4:37pm On Nov 03, 2014
red101:

Hi Carpenter and Ernie4life, what do you suggest for someone living abroad who knows absolutely nothing about the market in Nigeria but wants to participate.

Ernie has offered the best advice...you need to do some research first.

However, we all are all still learning and please note that I personally do not qualify to give financial advice (unfortunately, the experts have messed up so much that I have decided to do it my own way at my own peril). Knowing what I know now, I would invest my money in an index fund that gives me the flexibility to pull my money out when I need it. If after I feel there is a better investment out there, I will pull it out partially and see how that goes.

I have been with FBN Capital (FBN Money Market Fund) since 2012 and they offer good and reasonable rates (you can read up on their site http://www.fbncapital.com/). InvestmentOne is also a good one, am sure Ernie will be able to guild you with that. There are also others, from ARM, StanbicIBTC

Please note that this is to get you started while you find an investment vehicle that suits your apetite then you can tell us too.

Warning! If it looks or sounds too good to be true run!!! (it is not uncommon to find rates in the region of 10-15% per annum in Nigeria, I would be cautious of any rates above that)

Do you have a Nigerian bank account? This will make life much easier for you to deal with the train you decide to board.

Send a mail to the Investment House and they will take it from there...you can always send scanned forms with signatures these days with a copy your ID or passport. Also, ensure the account you are paying into has the name of the Investment house in question before you pay.

Disclosure: I bank with FBN, own shares in FBNH, invest with FBN Capital

4 Likes

Re: Mutual Funds by red101(f): 6:28am On Nov 04, 2014
@carpenter and ernie,
Thanks for the information.
I have absolutely no clue where to begin. I do not own a Nigerian bank account and have not lived in Nigeria for at least a decade. 10-15% is really high. The average return here in the US is about 6% so I thought it would be a good idea to take advantage of that.
How do I go about opening an account from abroad? Is that even possible?
I just sent an email through the "contact us" link on the FBN website asking for details on how to open a mutual fund account for someone based abroad. I hope I get a response.
Re: Mutual Funds by carpenter(m): 7:15am On Nov 04, 2014
red101:
@carpenter and ernie,
Thanks for the information.
I have absolutely no clue where to begin. I do not own a Nigerian bank account and have not lived in Nigeria for at least a decade. 10-15% is really high. The average return here in the US is about 6% so I thought it would be a good idea to take advantage of that.
How do I go about opening an account from abroad? Is that even possible?
I just sent an email through the "contact us" link on the FBN website asking for details on how to open a mutual fund account for someone based abroad. I hope I get a response.

Interests rates are quite high here also, it is probably what the experts call "cost of money".

Am not sure if FirstBank will open an account for you but I think GTbank has something like that (you probably don't need to appear)...go to http://gtbank.com// and you will be able to get first hand information (see it as the place where your research truly starts).

FBN capital might actually accept dollars from you as I have transferred to them before but on a seperate Investment vehicle (Ivory African bonds). However, the bank rates and what is available in the open market are not the same ...could be as much as 5% difference with the open market being higher.
Re: Mutual Funds by ernie4life(m): 11:17pm On Nov 04, 2014
red101:
@carpenter and ernie,
Thanks for the information.
I have absolutely no clue where to begin. I do not own a Nigerian bank account and have not lived in Nigeria for at least a decade. 10-15% is really high. The average return here in the US is about 6% so I thought it would be a good idea to take advantage of that.
How do I go about opening an account from abroad? Is that even possible?
I just sent an email through the "contact us" link on the FBN website asking for details on how to open a mutual fund account for someone based abroad. I hope I get a response.

all investment houses are aware of foreign investors so the always have an arrangement for them, FBN will definitely have options for dollar investments, KGIF has options for dollar investments though am not sure how the transaction is done, if you are interested I make the inquires of how it works and post for you.
Re: Mutual Funds by carpenter(m): 6:28am On Nov 05, 2014
ernie4life:

all investment houses are aware of foreign investors so the always have an arrangement for them, FBN will definitely have options for dollar investments, KGIF has options for dollar investments though am not sure how the transaction is done, if you are interested I make the inquires of how it works and post for you.

Yeah you are very correct but the problem with changing with banks (or investment houses) from any currency to naira (USD for example) is that you lose like an average of 5% of the naira equivalent compared with the black market. So lets say eventually she wants to use the money and needs to change it back to dollars after a year...chances are that dollar would have appreciated against the naira (of course the reverse can happen but unlikely or remain the same). I don't have any statistics to work with so lets say the naira loses 3% against the dollar....she then will have been better off investing in the US for 6% than in Nigeria at 12% (4% effective) for that period. This would not have been a problem if you could change via the banks or investment houses back to dollar at the CBN rate but chances are that it will not happen. They are happy to receive but not so happy to give.

I would only transfer dollars for an investment if the investment is denominated in dollars otherwise, will change it with a money changer (by the way, someone runs a foreign exchange biz here...) try this thread http://www.nairaland.com/68738/how-much-did-exchange-dollar/86#26808717

Arbitrade and others have been doing this for a while.

1 Like

Re: Mutual Funds by red101(f): 6:39am On Nov 05, 2014
Thanks a ton for all the information.
I talked to a friend and she said it was too risky. The whole process seems complicated enough anyway.
I will stick with what I have for now and maybe sometime in the future an opportunity will present itself.
Re: Mutual Funds by carpenter(m): 6:50am On Nov 05, 2014
red101:
Thanks a ton for all the information.
I talked to a friend and she said it was too risky. The whole process seems complicated enough anyway.
I will stick with what I have for now and maybe sometime in the future an opportunity will present itself.

All the best!

Meanwhile continue to read more about what is available...try to open an account in Nigeria.

Remember no pain, no gain
Re: Mutual Funds by ernie4life(m): 7:37am On Nov 05, 2014
carpenter:


Yeah you are very correct but the problem with changing with banks (or investment houses) from any currency to naira (USD for example) is that you lose like an average of 5% of the naira equivalent compared with the black market. So lets say eventually she wants to use the money and needs to change it back to dollar after a year...chances are that dollar would have appreciated against the naira (of course the reverse can happen but unlikely or remain the same). I don't have any statistics to work with so lets say the naira loses 3% against the dollar....she then will have been better off investing in the US for 6% than in Nigeria at 12% (4% effective) for that period. This would not have been a problem if you could change via the banks or investment houses back to dollar at the CBN rate but chances are that it will not happen. They are happy to receive but not so happy to give.

I would only transfer dollars for an investment if the investment is denominated in dollars otherwise, will change it with a money changer (by the way, someone runs a foreign exchange biz here...) try this thread http://www.nairaland.com/68738/how-much-did-exchange-dollar/86#26808717

Arbitrade and others have been doing this for a while.
@carpenter you are right, now I made enquires about this situation, the person in charge told me the have foreign accounts for different currencies, this means u need not change to naira before you invest, all you need to do is provide the necessary documents then you tell them which currency and the will give you the account to pay money into, though this is for KGIF I don't know about FBN
Re: Mutual Funds by carpenter(m): 7:42am On Nov 05, 2014
ernie4life:

@carpenter you are right, now I made enquires about this situation, the person in charge told me the have foreign accounts for different currencies, this means u need not change to naira before you invest, all you need to do is provide the necessary documents then you tell them which currency and the will give you the account to pay money into, though this is for KGIF I don't know about FBN

I find that strange....if the investment is denominated in naira then be sure they will do a conversion. The problem is not even the conversion per say...it is the rate that will be used that I am concerned about. Unless the investment is denominated in several currencies. Marketers will do anything to get money in most times...then the story will start. In what denomination will dividends be paid? I hope you catch my drift


If they agree to convert at the CBN rate to naira and will pay back in dollars at the CBN conversion rate when exiting...that makes sense but I doubt they will do that.

For the Ivory African Bond I mentioned earlier, the investment is denominated in dollars and dividends are in dollars.

1 Like

Re: Mutual Funds by ernie4life(m): 8:06am On Nov 05, 2014
carpenter:


I find that strange....if the investment is denominated in naira then be sure they will do a conversion. The problem is not even the conversion per say...it is the rate that will be used that I am concerned about. Unless the investment is denominated in several currencies. Marketers will do anything to get money in most times...then the story will start. In what denomination will dividends be paid? I hope you catch my drift


If they agree to convert at the CBN rate to naira and will pay back in dollars at the CBN conversion rate when exiting...that makes sense but I doubt they will do that.

For the Ivory African Bond I mentioned earlier, the investment is denominated in dollars and dividends are in dollars.

Yea that's why I said make proper inquiries before you invest, note that for KGIF you will be paying the naira equivalent in the currency you wish, and when dividends are paid it will also be in same form, so like carpenter said if for any reason the naira drops you know the implications, though I think it will be hard for you to do investments in a another currency in another company, but you could check out the one carpenter mentioned that deals on dollars, I think it's a good deal. but remember the naira has been a bit stable for a while now
Re: Mutual Funds by carpenter(m): 8:15am On Nov 05, 2014
ernie4life:

Yea that's why I said make proper inquiries before you invest, note that for KGIF you will be paying the naira equivalent in the currency you wish, and when dividends are paid it will also be in same form, so like carpenter said if for any reason the naira drops you know the implications, though I think it will be hard for you to do investments in a another currency in another company, but you could check out the one carpenter mentioned that deals on dollars, I think it's a good deal. but remember the naira has been a bit stable for a while now

Ernie I just used that Investment as an example...it is not offered to everyone. Took a while to be able to get in myself and the conditions are very different from the everyday fund. It is a medium to long term investment vehicle and as such will not recommend it to people. The rates are not also fantastic when you compare to the MMFs...around 5-7% but good for diversification
Re: Mutual Funds by ernie4life(m): 12:34pm On Nov 05, 2014
carpenter:


Ernie I just used that Investment as an example...it is not offered to everyone. Took a while to be able to get in myself and the conditions are very different from the everyday fund. It is a medium to long term investment vehicle and as such will not recommend it to people. The rates are not also fantastic when you compare to the MMFs...around 5-7% but good for diversification

Ok
Re: Mutual Funds by sentoms: 6:50pm On Nov 05, 2014
ernie4life:

thanks for the response, do the charge withholding tax on the investment?
It is tax free.and the other benefit is that you have access to your fund within 3-5 working days . I gave them a standing order , so every month I add to my investment. Use it to save for my rent, school fees. etc. they have other funds like DISCOVERY FUND the oldest mutual fund in Nigeria. (Balanced fund ) AGGRESIVE GROWTH FUND (Equity fund). ARM MUTUAL FUNDS are great.
Re: Mutual Funds by ernie4life(m): 8:50pm On Nov 05, 2014
sentoms:
It is tax free.and the other benefit is that you have access to your fund within 3-5 working days . I gave them a standing order , so every month I add to my investment. Use it to save for my rent, school fees. etc. they have other funds like DISCOVERY FUND the oldest mutual fund in Nigeria. (Balanced fund ) AGGRESIVE GROWTH FUND (Equity fund). ARM MUTUAL FUNDS are great.

thanks for your response, am asking most questions so that those interested in ARM mutual funds can know some of the features,

now you said you gave a standing order to enable you save, does that mean all of them will still mature at the same time
Re: Mutual Funds by ernie4life(m): 9:01pm On Nov 05, 2014
Yem0350:
Is Permanent voters' card accepted for KGIF subscription and also redemption?

yes it's accepted

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