₦airaland Forum

bemagnify:
come... o drop your whatsapp digit

naijaobi:
So this forum is not enough for you?

ernie4life:
am not

enemarieal:
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.

enemarieal:
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.

ernie4life:
Fman.com.ng

enemarieal:
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.

dotcomnamename:
MMF is MF. They're all called Mutual Funds.

enemarieal:
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.

coolangel54:
I intend visiting Stanbic IBTC next week to enroll in the Mutual money fund investment. I want to start with N20,000 for now but I intend increasing it monthly. I am hustling for now but I really need to invest for tomorrow. How do I calculate returns daily, monthly and yearly? I was actually taught but I have forgotten the process. Thank you

Fiyinfoluwa20:
Dear All,

Please, I am invested in the StanbicIBTC Equity Funds, largely weighted on the performance of blue chip stocks on the NSE(c.60 percent). Earlier this year, I recorded about c.12% growth over capital invested. However, I didn’t make any withdrawals at that point. Surprisingly, in February alone, all my gains have been eroded, and I have a meagre 2-6% over capital invested. The question is:

1. Is it possible to always make withdrawals of all my gains when it is in the region of 8-10%

- If yes, how do I go about this ?