By Helen Oji
Sigma Pensions has urged investors to remain calm in the face of market volatility and strategically diversify their assets.
The Chief Investment Officer, Sigma Pensions, Pabina Yinkere, while speaking at a webinar organised at the weekend, lamented about investors’ shallow knowledge of market fundamentals.
He highlighted the need for investors to diversify their portfolios, this was the most basic and effective way of reducing investment risks.
According to him, the webinar was organised to educate participants on personal finance diversification, making investment decisions and opportunities in pension funds.
In his presentation titled, ‘hedging pension funds against market volatility, Yinkere, noted that 2020 was a peculiar year, especially for investors, as the financial markets were faced with the devastating effect of the coronavirus (COVID-19) pandemic.
He said: “When you are faced with a volatile market, do not panic; read the situation well, understand what is going on and where necessary, reduce risks.”
He also advised investors to guide against the effect of the crisis with diversification into asset classes that give accrual incomes, good dividend yields and have greater potential for appreciation.
He pointed out that volatile assets are usually considered riskier than less volatile assets because their prices are less predictable.
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