₦airaland Forum

I appreciate your candor Freeman67. This is helps a lot. Thank you

freeman67:
As a former subscriber of VDF I can boldly tell you that capital is guaranteed. What is not guaranteed is your interest ( I am not sure I got upto $2 for investment of just $1,000 when I terminated the investment after about 9 months.) and opportunity to monitor your investment.(My main reason for terminating the investment.) I kept requesting for a means/access to my account to no avail so I had to terminate.


The only good side to them is that you can deposit the USD to their account (ledger account) with GTB thereby saving you transfer cost unlike Stanbic that you must transfer.

ernie4life:
What is a Mutual Fund?
A mutual fund can be defined is an entity that pools cash from a variety of investors for the sole purposeof investing the cash in shares, bonds, treasury bills etc (all together called a portfolio of investments). The profit derived from the diversified pool of investments are shared to investors in the funds annually or semi annually or as stipulated in the fund prospectus.

Who Operates a Mutual Fund?
Mutual Funds are operated by professional investment firms made up of people who are savvy with the money and capital market. Mutual Fund, like in Nigeria can be operated by the Investment arm of banks, stock brokerage firms, investment banks etc.

How is it different from a stockbroking firm?
A stockbroking firm is simply a company that onyour behalfand instruction uses its license to buy and/or sell shares on the stock market. With a stockbrokerage firm you give them an instruction to buy or sell shares of your choice. You also keep tabs of the performance of your stocks on a daily basis and monitor its performance independently. For a Mutual Fund however, they determine which Investment decisions to make rather than you givinginstruction as to what shares should be bought for you or which you intend to sell. The shares you buy with the Mutual Fund is that of the fund and not that of the companies quoted on the stock exchange or indeed any quoted investments.

Do they only invest in stocks?
Off course not. Mutual Funds mainly invest in broad and diversified pool of investments. However these can be grouped into two;
A –  Money Market
B – Capital Markets
Money Market-
 Example of Money Market  instruments are Treasury Bills, Certificate of Deposits, Commercial Paper etc. These instruments are mostly debt note with a promise to pay a stipulated interest rates and the principal at a predetermined date.
Capital Markets
– Capital Markets are markets where Bonds, Stocks (Shares) are traded on a daily basis. So, a Mutual Fund can also use your money to invest in stocks and bonds. For example, when they invest in shares they hope that the value will appreciate thus increase the value of their fund or making them a nice profit when they sell the shares.But please note, most mutual funds usually outline the type of investments they hope to invest your money in. This can be found in their prospectus.

Do All Mutual Funds invest in the same categories of funds?
There are mainly 3 categories of funds they typically invest in. Fixed Income Funds – These are funds that are meant mostly to invest in fixed income securities. Fixed Income Securities are investments that pay a fixed return on an investment. For example, treasurybills offered by the Government are issued at a coupon (rate) of say 10%pa. Meaning, they pay an interest of 10% on any amount invested. Mutual Funds that are Fixed Income Related look out for safe investments that can guarantee a good incomestream. They mostly suited for investors with a long term view towards returns. Fixed Income Funds are safe investments as it mostly involves securities in government securities. Due to the nature of government securities their returns are typically low.II. Equity Funds – These are Mutual Funds that invest mostly in stocks and shares of companies are quoted. Some funds can also use fund assets tosubscribe shares for private placements. Equity Funds offer high returns but are associated with high risk.III. Mixed Income Funds – Mixed Income funds are a hybrid of Equity Funds and Fixed Income Funds. Because of their diversified nature, they often offer low risk for investors. Low risk as usual is associated with low returns.

Why Should I even Invest in them?
Mutual Funds afford people who do not have the time to invest in the money and capital market or do not know much about the business of buying and selling securities an opportunity to invest and make money. It also gives them an opportunity to save for the futre. By investing in mutual funds you have an opportunity of investing in a portfolio of heterogeneous instruments rather than having your money in just one basket. For example, your N100k investment in a single mutual fund can represent aninvestment in bonds, stocks, treasury bills etc.

How Much Can I Give them?
Mutual Funds typically have an investment band depending on the nature of the fund. Some can be as low as a minimum of N5,000, whilst some can be N100,000 and others N1,000,000.

Is it Profitable?
Like a every other business Mutual Funds are also exposed to the same risk and rewards that can determine whether they make or loose money. But since no business originally sets out to loose moneythey will often tell you that they are profitable. However, you can know how profitable a mutual fund is or can be if the fund owners already have a history. Most of the managers already have experience in running funds and so must have track records of their performance in the past. It is also important that you look at what type of returns they intend to offer to their investors.

What kind of returns can I expect?
This depends on the your risk appetite. For example,if you have N100k and think you can invest it in any business of your choice and get a profit of N20%, then investing in a mutual fund that promises 14% returns may not be a good idea for you. The return a mutual fund promises you should also be comparedto returns one can get on risk free investments suchas treasury bills etc. For example, if a Mutual Fund promises a minimum return of 12%pa and Government Pays interest of 14% on Treasury Bills, then investing yourself may just be a better idea. In general mutual funds will typically offer minimum returns that are benchmarked above inflation rates.

Are my returns tax free?
It depends on the mutual funds you are investing, some are tax free while others are not. Do before investing on mutual funds find out if it tax free or not and compare the benchmark rate the are giving you with the tax.

What are open and closed mutual funds?
Open Ended Mutual Fundsare funds that are open to continuous issuance of shares to investors. Operators of the fund continue to issue shares to the public to buy into the fund. Investors in the fund who do not wish to participate any further will simply resell their shares to the fund at the subsisting Net Asset Value. They can also reinvest in the funds whenever they want. Some Open Ended Funds also mandate you to keep your money with them for a specified period of time before you can sell or request for your money back. Open Funds arevery common.
Closed Ended fundson the other hand are funds that have limited number of shares that are sold at the initial public offering (IPO). Once the IPO is over, the fund closes sale of its shares to the public. Being a regulated fund, the shares are traded on the stock exchange like the shares of any quoted company. So, if an Investor decides he want his money back he will simply put up his shares for sale. The share price of a closed fund are determined by both the Value of the Portfolio as wellas the sentiments of investors towards demand andsupply. This is unlike the Open Funds that are determined by simply dividing the value of the portfolio by the number of shares issues by the fund.

Which is best for me?
This is a matter of personal choice and risk appetite. Closed Ended Funds are regulated by the Securities and Exchange Commission as well as theNSE. They play by the rules set by the regulatory authorities. Their share price are also published daily on the pages of Newspapers and can also be found on the internet. Open Funds are mostly unregulated and are not traded on the floor of the stock exchange. They are mostly floated by reputable organisations with a track record for performance.

What is in it for the fund managers?
Fund Managers are in it for the fees they charge you for helping you invest your money. They sometimes charge you fees upfront when you invest and also charge you a fee when they make a profit on your investment. Remember, profits are declared after deducting from revenue, cost of investments, statutory expenses, taxes, etc. Managers can charge fees ranging from 2%

“How many millionaires do you know who have become wealthy by investing in savings account? I rest my case.”

Join Green income Nigeria ltd and get the value of your money by making your money work for you

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rOsy247:
I made deposit since yesterday morning via ibtc website, it has not yet reflected in my account till now. Has anyone experienced this?

Since today is public holiday, wait till the close of work tomorrow when they update their system and if it doesn't reflect by then, you can then worry.

Boyhood:
Since today is public holiday, wait till the close of work tomorrow when they update their system and if it doesn't reflect by then, you can then worry.

Okay thanks

Bobbietech:
“How many millionaires do you know who have become wealthy by investing in savings account? I rest my case.”

Join Green income Nigeria ltd and get the value of your money by making your money work for you

visit: [url]greenincomeltd.org[/url] to register

No thanks. Our money is working for us through mutual funds.

Your company is not registered by SEC and CBN

All these companies that will scam sombody, as my money dey bank I dey fit sleep and wake up in peace see my 1400 naira interest everyday. If u fold up where we Wan go ask for our money. RUBBISH

I'm still waiting for Stanbic ibtc to send me a mail as regards the opening of my account.

Submitted all necessary document and form since Thursday last week,

Was told I would get my login details yesterday. Since Tuesday was public holiday, shouldnt they have send it by now!

For money market fund with stanbic ibtc, does someone need to specify the period he is investing his money?

Dhazen55:
For money market fund with stanbic ibtc, does someone need to specify the period he is investing his money?

You don't need to specify. however, you need to leave your money for a minimum period of one month before first withdrawal otherwise you will be charged some penalty

skyangel:
You don't need to specify. however, you need to leave your money for a minimum period of one month before first withdrawal otherwise you will be charged some penalty

Thanks for your contribution.

Stanbic sent my acc no,
They said they would forward my log-in details later,

In the meantime, they said I can go on and credit my account. Should I wait till I get the login details or proceed and credit the account?

Dhazen55:
Thanks for your contribution.

Stanbic sent my acc no,
They said they would forward my log-in details later,

In the meantime, they said I can go on and credit my account. Should I wait till I get the login details or proceed and credit the account?

Please help me with Stanbic email to submit my Account application form. Thanks

doubletop:
Please help me with Stanbic email to submit my Account application form. Thanks

mutualfunds@stanbicibtc.com

Dhazen55:
Thanks for your contribution.

Stanbic sent my acc no,
They said they would forward my log-in details later,

In the meantime, they said I can go on and credit my account. Should I wait till I get the login details or proceed and credit the account?

I will advice you get your log in details first. It isn't supposed to take long, I got both my account number & log in details same day
Happy investing

[quote author=Dhazen55 post=82790054]mutualfunds@stanbicibtc.com[/quote

Thank you very much.
Please help me with ARM Investment Management Limited email to submit mutual fund account opening form online . I want to submit my mutual fund application form online. Thanks

rOsy247:
I made deposit since yesterday morning via ibtc website, it has not yet reflected in my account till now. Has anyone experienced this?

If you use your card as means of deposit. you get value after 2 business days.

emmasoft:
If you use your card as means of deposit. you get value after 2 business days.

The deposit has not yet reflected in my account. I deposited since Monday. Please what should I do?

Hello guys,

Does anyone here use United Capital MMF?

I started funding my mmf account in Aug 2019 and this is the first week in October where I think I should receive my interest but I have not seen anything.

Should I be worried?

Emmaesty:
Hello guys,

Does anyone here use United Capital MMF?

I started funding my mmf account in Aug 2019 and this is the first week in October where I think I should receive my interest but I have not seen anything.

Should I be worried?

No

emmasoft:
No

Thank you

Emmaesty:
Hello guys,

Does anyone here use United Capital MMF?

I started funding my mmf account in Aug 2019 and this is the first week in October where I think I should receive my interest but I have not seen anything.

Should I be worried?

How about reaching out to their customer service?

olujaidi:
How about reaching out to their customer service?

I reached out to them yesterday and they said t will be credited to my account but I have not seen anything yet

I don't understand fbn mmf oooo. as at Friday last week my interest on my investment was 43k and then on Saturday it changed to zero, I just checked today I'm seeing 400 naira as interest....abeg make una check una balance oo. don't know if am d only one experiencing this?

Moses247:
I don't understand fbn mmf oooo. as at Friday last week my interest on my investment was 43k and then on Saturday it changed to zero, I just checked today I'm seeing 400 naira as interest....abeg make una check una balance oo. don't know if am d only one experiencing this?

Sigh

Did you choose to reinvest interest? If yes, it's been added to your principal. If not, you should get credited soon. I think that's what happened.

The 400 is probably daily interest accrued. Reach out to the customer service or ask for your statement

Emmaesty:
I reached out to them yesterday and they said t will be credited to my account but I have not seen anything yet

Exercise some patience

olujaidi:
Sigh

Did you choose to reinvest interest? If yes, it's been added to your principal. If not, you should get credited soon. I think that's what happened.

The 400 is probably daily interest accrued. Reach out to the customer service or ask for your statement

I didn't reinvest anything...i usually check my daily interest via the app and as at Friday it was 43k then on Saturday it changed to zero, I thought maybe it's due to upgrade but to my surprise I'm seeing just 400 naira today

Moses247:
I didn't reinvest anything...i usually check my daily interest via the app and as at Friday it was 43k then on Saturday it changed to zero, I thought maybe it's due to upgrade but to my surprise I'm seeing just 400 naira today

Ok then. Fire them complaint sharp sharp

skyangel:
I will advice you get your log in details first. It isn't supposed to take long, I got both my account number & log in details same day
Happy investing

Thanks.
I went ahead to make deposit today while waiting for my login details,
I'm still yet to get my log-in details.
Sent them a mail already. I will call their customer care tomorrow.

If when filling the form or opening the account you stated that you want your interest to be re-invested then obviously it has been added to your principal and reinvested, hence, the zero balance and then 400 naira later.. If not, you can send them an email to that effect.

But check you principal first before laying the complain.

Moses247:
I don't understand fbn mmf oooo. as at Friday last week my interest on my investment was 43k and then on Saturday it changed to zero, I just checked today I'm seeing 400 naira as interest....abeg make una check una balance oo. don't know if am d only one experiencing this?

it has corrected I guess it was a technical glitches

I received far below the accrued interest I normally receive from STANBICIBTC Money Market, I do receive 790-860 around that range as daily accrued interest, so on 1st October which was public, nothing came as it was a national holiday , the following morning i checked my Dashboard nd i noticed 76naira was added as interest which falls short of the normal value as well as the rate quoted on their website. At the close of 2nd October business day i received 784naira as interest but that i guessed is the Value for 2nd October. I sent them email to know whether it was a glitch but no reply for a whole day.Did anybody experience this?

Dhazen55:
Thanks.
I went ahead to make deposit today while waiting for my login details,
I'm still yet to get my log-in details.
Sent them a mail already. I will call their customer care tomorrow.

I think you should give them a call. They respond faster to calls than email