skyangel:


For the secondary, i invested just 600k, @14.2% for 356days. From the e'certificate mailed me, i'll be getting 696k at maturity. Note that some change of less than 500 naira was returned to my acct.

For primary, the interest was paid upfront, the rate was about 14.854% (from my calculations) for 364 days

Hope my explanation is clear

Hi Please which bank did you get this rate, I approached a Access Bank, and i am getting just 13.5%.

Are they banks that usually offer better rates.

Thanks.

Strange, i also had a conversation with AXA client services, however, they confirmed that Rates quoted on their site is net ALL EXPENSES including Management fees, meaning no additional cost will be placed on either Interest/Capital.

ajeleomo:


Thanks for your update, however i beg to differ as this simply means no one knows the interest rate of the day until interest is paid. Aso on the Annual management fee, i just had a chat with Axa customer service and see below what he had to say on this.

AXA Mansard
9:04 am
Hello, if you want to get more details about our Investment products & services, I’m glad to help.

omonuwa
good morning
AXA Mansard
Good morning

and thank you for contacting us

omonuwa
Please i want to open MMF account with you but would like to dot the I's
I read about Annual management fee of 1.25%. kindly explain how and when this is applied
AXA Mansard
We are glad for your interest in us.

The Management fee is charged on the interest

and not the principal

and it is per annum not monthly

using today's interest rate

so, it will be 1% of 11.99

i mean 1.25% of 11.99

omonuwa
so which means the interest actually paid is 11.99-1.25 = 10.74% at the end of the year
AXA Mansard
Yes please

omonuwa
ok
AXA Mansard
also bear in mind that the interest is subject to change (i dont mean the management fee which is constant)

omonuwa
ok noted
Thanks

olyrayy:


Thanks for this bro. What about dividends? Do equity mutual funds pay dividends? If they do, what determines when they pay dividends. How does compensation for the fund manager work?

Yes equity funds pay dividends, i imagine it will be dependent on if the underlying stocks pays dividends for that year.

Most fund managers that i know distribute dividends annually.

Not sure what you mean by your last question.

olyrayy:
House. Where can I get information on the yearly performance of a mutual fund?

Some fund managers have reports on their funds performance in the previous years on their site or

fman.com.ng has an archive of daily fund nav, you may have to take the pains of putting it all together to get out yearly performance.

or a quick google search will lead you to some report on comparative performance of Nigerian mutual funds.

olyrayy:

Wow. Thanks a lot sir. IF I get what you're saying, if the stocks in my fund manager's portfolio take a dive, that means that net asset value would also reduce. I'm asking this because I plan on going long term, and I want to buy more with the same amount when there is a bear. In essence... buy low and sell high or keep.

I actually have investments in the NSE, but I feel there is kind of a steep learning curve to really become good at it. I figure it would be best if I just outsource it to a pro. I also want to compare the returns of my personal stock picking and that of my mutual funds, to see who is better at it.

Yes nav will go in the collective direction of stocks in your portfolio, however am not sure if your fund manager will divulge which stocks are actually in your portfolio.

Yes. Fund managers are supposed to be more experienced than me a hobby investor, so they should have at their disposal tools and news to help them in deciding which stocks to pick. With equity mutual funds, the fund manager takes the headache of picking stocks when to stop loss/ lock gains etc off you and hopefully they will do that and make you rich . That been said equity trend is determined by many factors, so your fund manager may not be right all the time however we trust that with their experience they would make more informed decisions, save us the time to learn and frivolous losses.

Hi Olyrayy,

no one wants to loose his/her hard earned money young or old.

Equity funds are great if you get in at the right time, when price per unit is low or hold on long enough to see change in downward trend. Direction of trend is based on stock market forces (Fundamentals, technical, political and also speculation) . You can cash in returns from fund unit price appreciation as well as dividend payout which most asset managers distribute annually.

Equity funds are Risky, those who have equity funds can tell you how since mid feb 2018 that market has maintained continuous downward trend.

To your question about closed end funds vs ETFs, they are different.

Closed ended fund are funds with fixed quantity issued through and initial rights offer and afterwards traded on an exchange where subsequent buying and selling take place close ended funds appears not to be too popular amongst Nigerian fund managers. it can made up of any stock from any sector in that exchange.

ETF (Exchange Traded fund) are index tracking securities which may be made up of sectors based stocks (Pension, Goods, Oil and Gas, etc). (An index is a weighted computations of movement of set of/ all stocks in an exchange)
For example in the NSE we have NSE40 index which tracks listed pension companies, so if you invest in NSE 40 ETF your fund will in actual sense purchase various units of shares in companies that are listed in that index (in this example Pension), the Nav of your fund will fall/dip as the index trends.


when the stock market dips, does this affect the Net Asset Value of equity funds?
By stock market dips, i want to assume you are referring to dip in the all share index (ASI), the answer is it depends on what stocks your asset manager has in that funds portfolio

the NSE ASI is a weighted computation of all stock quoted in the NSE, it a general view of the performance of all quoted companies, however like you would have seen some companies gains and some loose while the ASI is in a downward trend. So if it so happens that some/all stock in your fund portfolio appreciates substantially when the ASI is in a nose dive, then you Nav will move in the opposite direction.

Ps i am not one of the ogas - hope this explains it a little.

olyrayy:
This thread is for Mutual Funds but it seems that majority of the focus is on MMFs. I quite understand this, as most people are scared of losing their hard-earned funds. I, on the other hand, am quite young and practically have nothing to lose

So, I'm kind of interested in equity mutual funds. Can any of the ogas here help out in this regard?

For instance, are closed funds the same as ETFs? Also, when the stock market dips, does this affect the Net Asset Value of equity funds?

Thanks a lot.

ImperialCovfefe:
A snapshot of the spreadsheet is attached below.

Thoughts

– ARM does not compound until the interest realised is distributed at the end of a quarter (3 months). Stanbic compounds with the interest once a week, but only adds a small fraction of the realised interest for this purpose (circa 7%).

– There is a marked difference in actual interest accrued compared with the quoted effective yield. This is more pronounced for ARM.

Hi ImperialCovfefe,

Thank you for sharing this, i also noticed this with axa mansard, for the period i checked there is a difference of >= 0.30% between percentage yield as stated on the site and what was actually used for interest computation.

This is worrisome, i wonder if there is an explanation for this or bad practice by these asset managers.

PS: thanks everyone for posts shared, i bet this posts have helped many in making informed decisions.

Great stuff guys, great to see like embedded systems enthusiasts. My most recent project was an 8bit processor using xillinx FPGA.

Looking forward to more project ideas.

Keep this thread alive Guys...

Yes, i am from Benue and i recieved the sms

Hello,

Kindly send me assessment question alexenemari@yahoo.com

I remain grateful.

Many Thanks...