Please Nairalander I am thinking of putting my money in this IBTC equity fund .That is if this 50% is not just a dangling bone to get someone hard earned money

Please advice me

I think you should download their annual report from their website, and check it out.
http://www.ibtc.com/pdf%20forms/IBTC%20Financial%20Information.pdf

Man min Thanks I tried the page but then I have in it so many Economic Analysis Slogan that I dont understand
some one please help me by defining these stuff in Nairalanders language

Nairalanders commom please help me out .

@Temin

An equity fund cannot give you guaranteed returns. Were they guaranteeing 50% return ? Because they shouldn't be guaranteeing returns at all. Bonds are a whole different matter.

GNature
Thanks man ? They did not in any way Guaranty the 50% but I think that was what the payed last year.
Talkin of Bond, s , mmmmm If you Know mush about it can you just help me out. I need to start investing I 8 to be poor at 50

An equity funds helps you to spread your risk. In a way, they have large pool of fund that they invest in various sectors of the economy. Being an equity fund, a big percentage (over 70%)is allocated to the stock market while the rest of the money goes to money derivatives like bonds, treasury bill e.t.c.

The returns you can get is therefore a function of the performance of the stock market in any particular year since most of the funds are allocated to the market. In case of IBTC, They are really the pioneer of equity fund in nigeria and they have been on it for a long time. They have millions of shares in their portfolios which they bought at a very cheap price like say 10 years ago. So you can imagine the cumulative effects of bonus, dividends e.t.c over the years. This is why they offer a different sell and bid price every year. I am not sot so sure of their debut price, but I think its 1000 or so but it has now grown to 5kplus. First bank shares 10 years ago is like N10. First bank was going for N72 at its peak this year. For a big equity fund, this translates to a healty returns for subscribers to that fund.So an average returns of 50% is quite possible because it is a cumulative effects of past investments and new ones.

In addition, IBTC is quite expensive at 5k plus a unit. Unless you really have big fund, you can make better returns investing in a very good stock. unless you have a great phobia for risk, you are better of putting the money in stocks like gtbplc, zenith and my current favourite- impending dangote sugar IPO.

all the best.

ebony9ja
I think you are an angel. You answered my question in such a wounderful way. Thanks a million for the advivce. I am waiting for Dangote I understand it is coming out soon at N13.
All the best

Thanks. I am happy to be of help. IPO is coming out @N18 per share. Nov 15- Dec 22.