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SEC emphasises need for investment diversification

The Acting Director-General of the Securities and Exchange Commission (SEC), Mary Uduk has advised investors in the capital market to diversify their investments while transacting business to guide against the unpredictability of the market.

This is even as she emphasized the need to invest in several assets classes to reduce risks associated with depending on just one type of asset.

She gave this advice while speaking at a one-day enlightenment programme for the Nigerian Army Ordnance School, Ojo Cantonment, Lagos.

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Uduk warned that the capital market is unpredictable. This means that an investor could either gain returns on his investment or lose it all. The onus, she said then lies on the investor to pick his choice, she cautioned.

In her words, “A smart investor is expected to have this consciousness at the back of his mind at all times, even as he wades into the market, to pick his choice instruments or instrument of investments. There are good opportunities to achieve decent returns on investment in the market. Investors should seek knowledge before investing,” she said.

She urged investors to be smart and avoid obvious mistakes that could come from a mixed bag of investment. She advised investors to make sure that investment portfolio contained a mixture of bonds, shares for profitability. She also drew investors’ attention to mutual funds which she tagged as a valuable choice of investment.