Index Fund

[chiofloxy]

Guys please could someone hint me on any company that offer the best Index Fund investment in Nigeria?Am counting on your experiences.

[trippleholes]

I am new in the house, but I can assure you of ibtc and armdiscovery fund. Also oceanic vintage fund is also good.

Best of luck

[Monwowo]

Originally Posted by chiofloxy

Guys please could someone hint me on any company that offer the best Index Fund investment in Nigeria?Am counting on your experiences.

Most of the mutual funds somehow track the market growth (and decline as the case may be). So, by just picking a fund with good record, u will be ok tracking the market.

Here are few u may want to google to read more about

Arm discovery
Arm aggressive fund
IBTC equity
IBTC ethical
Legacy fund
Fidelity
Zenith equity, ethical (new funds)
Coral funds

This list is not exhaustive

[Michael]

Originally Posted by chiofloxy

Guys please could someone hint me on any company that offer the best Index Fund investment in Nigeria?Am counting on your experiences.

We have numerous different types of funds but no index fund. In Nigeria we try to beat the market, not track it.

[zainabusman]

Originally Posted by Michael

We have numerous different types of funds but no index fund. In Nigeria we try to beat the market, not track it.

And as we recently found out beating the market is not exactly easy.

[Michael]

Originally Posted by zainabusman

And as we recently found out beating the market is not exactly easy.

But It sure is exciting!

[zainabusman]

Originally Posted by Michael

But It sure is exciting!

For the strong at heart, the Index funds are selling at low prices in view of the downward trend of the market. The IBTC ethical fund for example is selling todat at N1.97. This is lower than its opening price for the year.

Some writers argue that buying mutual funds in a down market is a good strategy unlike buying individual stocks. This is because mutual funds are sufficiently diversified not to fall to zero and will move up if market starts moving up.

[Michael]

Originally Posted by zainabusman

For the strong at heart, the Index funds are selling at low prices in view of the downward trend of the market. The IBTC ethical fund for example is selling todat at N1.97. This is lower than its opening price for the year.

Some writers argue that buying mutual funds in a down market is a good strategy unlike buying individual stocks. This is because mutual funds are sufficiently diversified not to fall to zero and will move up if market starts moving up.

I actually asked IBTC to buy some of its Equity fund when the market was so bullish that I couldn't get anything I asked for. But what really stops an equity fund from falling to zero. The div yields on equity funds are really quite poor and my Pension fund being managed by IBTC sure is a disaster. I would prefer to follow Buffetts advice. "Put all your eggs in one basket, and watch the basket".

[zainabusman]

Originally Posted by Michael

I actually asked IBTC to buy some of its Equity fund when the market was so bullish that I couldn't get anything I asked for. But what really stops an equity fund from falling to zero. The div yields on equity funds are really quite poor and my Pension fund being managed by IBTC sure is a disaster. I would prefer to follow Buffetts advice. "Put all your eggs in one basket, and watch the basket".

Generally funds have low dividend yield as they prefer not to pay dividend. Infact it is clearly stated in IBTC ethical prospectus that dividends will be low. They advised fund holders to sell some of their holdings if they need regular income.

An equity fund will fall to zero if the market falls to zero. Remember funds are forced to diversify into many stocks due to restrictions on how much they can invest in one company.

I like Buffets idea but i am not sure he is invested in only one company. He cant due to the size of his holdings obviously. Concentration is definetely important. Personally if i cant invest a certain amount in a company, i dont bother.

Right now i am waiting for the market to stabilize so that i can reduce the number of banks i have. I dont want more than 4 in my portfolio.

[abbynelson28]

As per my experience IBTC & Fidility are good ...

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Abby Nelson