“One should not get into investing looking for a quick turnaround or profit, but rather to build on your finances by achieving gradual and positive growth over time.”
This advice comes from Nicholas Neckles, portfolio manager with Sagicor Asset Management Inc., whilst sharing insights on the most effective approaches to investing as it relates to the pursuit of an individual’s financial goals.
He made the point that most individuals get into investing as a means of saving towards retirement, their children’s education, or obtaining a home; each of which fit nicely with the recommended long-term approach to investments, given the typical results achieved from such a strategy.
“Investments take time to deliver results, therefore, the longer an individual keeps their money in an investment, the greater the likelihood that they will achieve the positive returns they are looking for.
“The size of the return would also typically be greater the longer they remain invested, thanks to the impact of compound interest”, said Neckles.
“We therefore encourage individuals to invest for a minimum of five years or longer. If they do that, in general they will have more money at the end of the investment period than they did when they started.”
The portfolio manager made the point however, that far too many individuals think of investing as a way to build capital quickly, which is a wide misconception.
“Movies are always made about people that invest in very high-risk instruments and make and lose millions in very quick time.
“This is what becomes instilled in the minds of many when it comes to the idea of investing; that it’s a gamble with a high risk to reward ratio, which is really not the case.
“For the most part, individuals invest over a long period of time and retire with more than what they started, but unfortunately that’s a boring story to tell, so that never gets promoted,” he argued.
“In finance, much of the high-profile news that is reported surrounds the behaviour of unscrupulous investment managers, the latest scam or occasional declines, and not about the majority of individuals who invest diligently over time and are successful in achieving the clear long-term goals they set for themselves.
“This grave misconception has led to many individuals running from the idea of investing, however, it is nothing to be afraid of especially when you are backed by a trusted and established investment manager.”
For as little as Bds$500 initial deposit and $100 per deposit thereafter, the frequency of which is at their own discretion, investors can invest in instruments such as mutual funds, which have been proven to deliver positive results over time.
As it relates to the performance of Sagicor’s investment products, during the fourth quarter of 2020, returns for the company’s Select Growth Fund and Global Balanced Fund were 7.8 per cent and 5.5 per cent respectively. (PR)